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Agents of airfreight carriers bracing for Egyptians having controlling stakes

Sunday 22 July 2018 06:35 PM

Air Freight carriers
Air Freight carriers

By Maha Yunis
Egypt's airfreight carriers agents are bracing for the activation of  decision issued last month by Ministry of Civil Aviation involving the prohibition of Egyptians having less than 51% of capital in cargo airlines.
MCA's decision No. 523/2018 has amended item No. 8 of the first article of the ministerial decree No. 607/2015, as it added a minimum contributions of Egyptians in the companies ownership structures.
" Egypt's new investment law appears at odds with MCA's decision with the former permitting investors to have 100% stakes in companies," said general manager of Afifi World Transport Abd El-Al Aly Ismail.
Chairman of Horus Air & Sea Transport Essam El-Shazly referred to the fact that foreign cargo airlines are already controlling the Egyptian market as well as to MCA's decision not necessary to be applied retroactively.
" The decision had a widespread appeal several years ago because it helps put an end to hegemony exercised widely by foreign carriers," said El-Shazly.
Cargo air-freighting  business is reeling from the lately imposed value-added taxes on exports in addition to political restriction slapped by foreign countries, such as the USA and Australia, on using modified cargo aircraft in air freight as well as lacking efficient workforce capable of handling logistics, he explained.  
El-Shazly urged Egypt's Ministry of Higher Education to introduce logistics into curricula of faculties of commerce in the state-owned universities so as to have  skillful logistics clerks  who may work to fill large vacancies in more than 500 airfreight carriers with 13,000 employees.