Reducing the salaries of the leaders 10% saves 20 million pounds
The Egyptian Ministry of Finance had announced earlier this week that it had offered two billion pounds, equivalent to $ 127 million, to the Holding Company for Egypt Air, in the form of a back-up loan to face the emerging Corona virus crisis.
In this context, the Acting President of the Holding Company for Egypt Aviation, Mohamed Rushdie Zakaria, explained that the government loan allows the payment of workers’ salaries and the inevitable expenses of the company, pointing out that a 10% reduction in the salaries of leaders provides 20 million pounds.
He noted that this loan does not entail any interest as it is a supporting loan, provided that the loan will be paid off after the return of the movement by 80% compared to the normal movement.
He revealed that the losses incurred by the Holding Company for Egypt Air are estimated at one billion pounds per month as a result of the Corona crisis, in addition to a deficit of revenues of 3.5 billion pounds per month.
On the other hand, he pointed out that the only activity that is still active is “shipping”, but that represents only 20% of expected revenue.
Regarding the other measures taken by the company, Zakaria explained that the incentives and privileges that were spent on workers were suspended, in addition to periodically reducing the numbers of workers.
Regarding the return of air traffic, it was considered that domestic air traffic will contribute to stimulating domestic tourism, but it is not expected that it will generate significant returns.