CAIRO: Private aviation companies have come under severe pressures by the Israeli war on Lebanon. At the top of these pressures, comes the rising international fuel prices as oil prices surged to $78 a barrel. In addition, international insurers have increased prices of their policies covering aviation risks, which represented a blow to 98 percent of private aviation companies dealing with international insurers.
Aviation companies losses are expected to hit $50 million by the end of this month, which could increase sharply if the armed conflict continues.
Taha Hassan, head of the Private Aviation Companies Chamber at the Egyptian Federation of Commerce Chambers, told NOOZZ that Egypt imports jet fuel, which makes up 60 per cent of operation costs.
“Only a single company in Egypt, Mobil, imports jet fuel which led to an upsurge in prices, he added.
He pointed out that international insurers also increased insurance policies for flights to the Middle East region, increasing pressures on private sector service providers.
Egypt has about eleven private aviation companies operating along with the state-owned EgyptAir Company. NOOZZ
