EGYPTAIR AIRLINES

Annual Report
08 / 09
 BOARD OF DIRECTORS
Capt. Alaa Ahmed Mohamed Ashour
Chairman
EGYPTAIR AIRLINES

Capt. Hassan Abu Ghonima

Secretary General
Ministry of Civil Aviation
Chairman’s Message
Capt. Ayman Adel Nasr EGYPTAIR AIRLINES is currently undergoing a serious stage of
development to deal with the new variables of the airline industry. We
Vice Chairman
are convinced that the human resources of the company are our most
EGYPTAIR AIRLINES valuable assets. EGYPTAIR AIRLINES has taken strategic and tactical
action to overcome the effects of the current global economic crisis.
MR. Nidal El Kassem Assr
Assistant Sub Governor Due to the negative impacts of the financial crisis on the airline industry
in Fiscal Year 2008 /2009, EGYPTAIR has revised its priorities to focus
Central Bank of Egypt
on the African market. It has a plan to expand its routes in Africa; thus
we have resumed our operation to Dar El Salam and have launched
Eng. Sabry El Said Diab a new destination, Abuja.
VP Companies Performance Follow-up & Coordination
EGYPTAIR HOLDING Through 2008 /2009, we set the base developing our IT, fleet,
network, product features and above all our human capital. Our aim
EGYPTAIR AIRLINES

is to develop EGYPTAIR into a modern, profitable and competitive

Capt. Mohamed Manar Kamal airline and to transform the Cairo Airport into a main international hub.
Senior Pilot
EGYPTAIR AIRLINES EGYPTAIR has demonstrated its eagerness and ability to grow a customer-oriented airline with our new structure
wherever we serve you globally.
Capt. Alaa Ashour
MR. Sherif Mostafa El Maghloub Chairman
VP Commercial EGYPTAIR AIRLINES
EGYPTAIR AIRLINES

MR. Ahmed Sherine Aref

Chief Cabin Crew
EGYPTAIR AIRLINES

MR. Sayed Abd Allah Mohamed

Manager Personnel Benefits
EGYPTAIR AIRLINES

Capt. Tarek Mohamed Watany

Syndicate Representative

26
Annual Report
27
Annual Report
08 / 09 08 / 09
 ORGANIZATION CHART

CHAIRMAN

GM Chairman’s GM Safety, Quality &

Office Environmental Affairs

VP Flight Operations VP Commercial

GM PR GM Security
EGYPTAIR AIRLINES

GM HR GM Legal Affairs
COMPANY PROFILE
EGYPTAIR AIRLINES is the core of EGYPTAIR HOLDING. Throughout more than 77 years of service, we have
successfully extended our network to reach major destinations across the world. EGYPTAIR has been an active
member of the Star Alliance since July 2008. Being a part of that huge network, EGYTPAIR customers are able to reach
destinations in 162 countries all over the globe. Also, EGYPTAIR customers will be entitled to all Star Alliance Gold and
Silver benefits through EGYPTAIR Plus Loyalty Programs.
GM Standard & GM Financial Affairs
Documents Control
NEW PROJECTS
EGYPTAIR AIRLINES moved its operations to the new Terminal of the Cairo Airport, TB3, with great success; it was
joined by seven Star Alliance members to realize the Alliance’s concept of ‘Move Under One Roof’. The new Terminal
TB3 is expected to handle 11 million passengers annually.
GM Commercial GM Technical Affairs It is worth mentioning that TB3 is equipped with state-of-the-art technology and constitutes and important asset for
Research EGYPTAIR and its partners in the industry.

DEVELOPMENT STAGES
In compliance with the international challenges facing the aviation industry, we have restructured the entire company and
our vision statement basically focuses on: offering our valued customers the ultimate possible service in a competitive
Purchasing & way; mixed with our unique Egyptian spirit. On the other hand, EGYPTAIR AIRLINES’ mission statement is to provide
Inventory Manager GM Technical Inspections high quality services by the most skilled and well-trained staff with an eye on profit.

28
Annual Report
29
Annual Report
08 / 09 08 / 09

Main Goals
Enhance EGYPTAIR AIRLINES’ image, making it a
passenger’s first choice.
Maintain our ambitious fleet modernization program
Improve EGYPTAIR AIRLINES’ competitive stance
regionally and internationally
Activate Cairo International Airport as a major hub
Increase EGYPTAIR AIRLINES’ share in different markets
Insure the implementation of a comprehensive training
and development program covering all company staff.
Improve company internal and departmental communication
through enhanced information system
Generate revenue and achieve profitability
Reduce cost without affecting quality
Change EGYPTAIR AIRLINES’ staff culture to reflect
the Egyptian spirit in performance.
MAJOR DEVELOPMENTS
EGYPTAIR AIRLINES
Customer-relation management to fulfill the customer’s
major requirements
Increase code-share agreements (20 code-share
agreements)
Partnership in the ARABESK project that includes nine
Arab airlines under the auspices of the AACO
Opening a new sales office at TB3 with an area of 350
square meters including 40 service screens
EGYPTAIR AIRLINES inaugurated First and Business
Class lounges with Star Alliance standards at TB3
The opening of a new sales office at the Air Mall with an
area of 300 square meters working 24-hours a day with
12 screens to serve Terminal One passengers.
Development of EGYPTAIR AIRLINES’
Network and Operation Schedules
EGYPTAIR AIRLINES’ main strategy is to:
Attract premium customers by operating double daily
EGYTPAIR AIRLINES Call Center
The call center is now working 18 hours a day to Africa and Europe as well as a handful of long-haul destinations
provide our valued customers with the best possible in Asia and North America. In addition, our entry into the Star
level of reservation and is equipped with the latest Alliance allows members access to nine new airports that were
technological systems. Eighty-two terminals are run by previously not served by Star Alliance carriers.
skilled, well-trained staff in order to offer the following
services: For EGYPTAIR AIRLINES, joining the Star Alliance has
fulfilled one of its major long-term business goals. With
Reservations additional connectivity through code shares and interlining,
Modifying reservations it will significantly enhance the airlines’ competitive stance in
Following up on waiting lists reservations
the Middle East and international long-haul markets.
Providing customers with the best fares and offers
Offering information about schedules and flight timings
TB3 has become the house of all of EGYPTAIR AIRLINES’
Providing new and unique services for First and Business
operations and serves as a hub for all Star Alliance members,
Class customers
thus achieving effective service for transit passengers.
EGYPTAIR AIRLINES’ contribution in
Star Alliance
On the 10th of July, 2008, EGPYTAIR became the 21st member
of the Star Alliance, becoming only the second carrier in the
Middle East to be part of a global alliance network, EGYPTAIR
AIRLINES provides a strong network fit for the Star Alliance,
with connections between the Middle East, North

connections to most of our destinations.

Development of the current FFP program
Transfer to ‘Amadeus’ – the new global reservation system
Use the PAXIS program to form sales strategies and set
marketing plans
Implementation of e-commerce
Forming ties with the partners and increasing our staff’s
awareness and efficiency.
Signing a memo of understanding with Egypt Post to
increase EGYPTAIR AIRLINES’ sales outlets without an
increase in cost
Develop means of media advertising
Contribution in Star Alliance’s ‘Move Under One Roof’.
Developed EGYPTAIR AIRLINES’ network and schedules
of operation
Improvement in EGYPTAIR AIRLINES’ call center
Establishment and activation of the Integrated Operation
Control Center (IOCC) equipped with the latest international
systems to provide information, support decision-making
and follow-up on the network’s operation
Activated yield management on all international and
domestic flights
Establishment of the group desk to organize reservations
and pricing for groups to generate revenue
Improve and develop the most efficient network structure
to identify the best long haul opportunities with our new wide
bodies.
Complete study with a global consultant to further optimize
the network’s connectivity of strategic travel flows through the
Cairo hub – in consideration of an expanded and efficient fleet.
Two phases of the study covering Winter 2009-
2010 and Summer 2010 seasons have been finalized.
The third phase will build a clean sheet network
structure for 2010 -2012
Increasing EGYPTAIR AIRLINES’ share of traffic flow
and shorten minimum connecting times.
The fleet growth plan has mainly focused on:
Restructuring EGYPTAIR AIRLINES’ own network; we
have reached 61 international points in the summer of
2009 with 412 weekly international flights. A huge increase
is expected during the summer of 2010, planning to reach
492 weekly international scheduled flights.
Expanding the fleet through an ambitions plan to double
and renew the fleet to reach 56 aircrafts by FY 2013 /2014.
Increase load factors to comply with the fleet expansion
and consequently increase the number of seats available.

30
Annual Report
31
Annual Report
08 / 09 08 / 09
 Code-Share Agreements
With regards to the continuous development of our network to reach new markets previously not served by EGYPTAIR
AIRLINES, several code-share agreements have been signed to increase EGYPTAIR AIRLINES’ market share through
cooperation with the partners. EGYPTAIR AIRLINES has focused on profitable markets and currently has 20 code-share
agreements signed with major international airlines.

Austrian Airways
Swiss International Airlines
South African Airlines
Thai Airways INT
Korean Air
Olympic Airways
Singapore Airlines
Lufthansa
BMI British Midland
Syrian Airlines
Asiana Airlines
Gulf Air
Saudi Arabian Airlines
TAP
Turkish Airlines
Aerosvit
Yemen Airways
Tunis Air
Malaysian Airlines
United Airlines
EGYPTAIR AIRLINES

32
Annual Report
33
Annual Report
08 / 09 08 / 09
 ARABESK 3. Adding FFP service to the EGYPTAIR AIRLINES call center
EGYPTAIR AIRLINES has partnered with the ARABESK 4. Starting a new service along with the official opening of Cairo
project that comprises of the following nine Arab Airlines International Airport’s TB3 by opening an EGYPTAIR Plus booth to
under the auspices of the AACO: serve our members and to obtain new members to the program.
5. Installing EGYPTAIR Plus drop point boxes all over TB3
EGYPTAIR 6. Activation of retro claim (claim missing miles) online for
EGYPTAIR flights as well as Star Alliance partners
Saudi Airlines 7. Updating our members with all new services and promotions
Gulf Air through mass mailing as well as Horus magazine
«our inflight magazine»
Yemen Airways 8. Installing up to date printing and auto mailing site to be the
Royal Jordanian core of an advanced communication center
Middle East
New FFP projects in process:
TUNISAIR 1. Launching a co-branding credit card with a major bank.
SYRIAN AIR 2. Expanding partners network regionally and globally
3. Applying new look and feel to egyptairplus.com
ETIHAD AIRWAYS 4. Adding new services to our website such as online redemption
and upgrade and online purchase of miles.
The project has been activated in January 2006 having
several commercial aspects and means of cooperation Market Data Analysis Department
among its members, such as schedule and network Following the strategic direction of operating the Cairo
coordination, followed by commercial agreements airport as a hub, maximizing the feed and de-feed of the
such as code-shares, special prorate agreements EGYPTAIR AIRLINES network and in the face of the highly
(SPAs) targeting full commercial cooperation among competitive airline industry and the competition with airlines
the members. EGYPTAIR AIRLINES’ partnership in of the region, and to maximize use of the facilities extended
the ARABESK project does not contradict the terms of to EGYPTAIR AIRLINES’ operations after moving to TB3, a
membership in the global alliance. contract was signed with IATA to purchase a PAXIS system
which provides airlines with the most possible accurate data
Frequent Flyer Program (FFP) extracted from BSP including:
FFP Achievements in 2009: Ticketed data from BSP for 80 offices
1. Training courses for most of EGYPTAIR AIRLINES High coverage in Asia
overseas offices and stations Domestic data
2. Achieving the transitional period from non Star Alliance Average fares data E-Commerce
EGYPTAIR AIRLINES

FFP cards to Star Alliance FFP cards Revenue data
Tickets issued through 30 CRS/GDS around the world
Identify regional traffic flow, potential new market and
real market size
Benchmark studies on optimal flow patterns
Evaluate the effectiveness of pricing strategy vs.
competitors
Flag market-share gap
In an effort to realize the above issues and to increase
the awareness of our strategic direction the following
steps were taken:
Execution of PAXIS training course to EGYPTAIR
AIRLINES managers and staff
Following the performance of single routes and
stimulating EGYPTAIR AIRLINES offices abroad by the
provision of data regularly
Following the competitors market performance to/from
points operated by EGYPTAIR AIRLINES
Performing workshops at headquarters by having the
engaged outstations meeting together
Focusing on the importance of beyond hub points to
promote traffic on these routes.
EGYPTAIR AIRLINES constantly aims to deliver high
quality travel experience at every customer touch point,
particularly online on our website. Our website offers our
customers the ability to book their tickets, select their
favorite seats and special meals, if any, at the lowest fare
during the time of booking with the highest level of personal
data protection and allows users to view the aircraft’s
status by simply entering the relevant flight number, flight
departure, arrival destination and print out their booking.
The entire interface of the EGYPTAIR AIRLINES website
is now available with customized features in 19 countries
with discounted special offers, different homepages and
different currencies.
EGYPAIR has also launched its mobile portal in
cooperation with Star Alliance. This globally accessible
mobile portal enables our customers to benefit from
the new technology through their mobile phones. The
mobile services are being executed in various stages and
presently encompass offerings such as flight schedules,
real time schedule of departures and arrivals, lounge
information, a currency converter, 5-day weather forecasts
for arrival destination, baggage tracing and destination
airport information. Additionally, more interactive services
such as itinerary display, Frequent Flyer Program status
and online check-in with seat maps for seat selection
are available. EGYPTAIR will also have mobile boarding
passes with 2D barcodes and irregularity notifications
by SMS. Customers can use these services through the
WAP on their mobile phones by visiting www.egyptair.
mobi or mobile.egyptair.com.
Increasing Staff Awareness.
EGYPTAIR AIRLINES is increasing staff awareness
through methods such as:
Training courses given to employees in collaboration
with major training centers inside Egypt and world wide
Setting annual plans for staff training
Monthly bulletins for internal events and news to increase
staff awareness to improve internal communication
Working on cultural change
Regular meetings between management and staff to
retain communication channels

34
Annual Report
35
Annual Report
08 / 09 08 / 09
 STATISTICS DISTRIBUTION OF PASSENGERS BY REGION 08/ 09

Distribution of Passengers by Region (Scheduled) America 3%

F.East 6% Domestic 18%

Africa 13%

Europe 22% M.East 38%

Despite the negative impacts of the global financial and economic crisis on the airline
industry in the Fiscal Year 2008 /2009, EGYPTAIR AIRLINES achieved 10% growth in
the total number of scheduled uplifted International Passengers, after excluding the
domestic uplifted passengers traffic on EGYPTAIR, which decreased by 24% compared
to the previous year , due to EGYPTAIR EXPRESS domestic network expansion
starting Summer 2008.

Most Regions witnessed passengers growth , The largest increase in passengers

EGYPTAIR AIRLINES

carried was(26%)in Africa ,(11%)in the Middle East , (7%) Europe and (2%) Far East
. America region was decreasd by (1%).

DISTRIBUTION OF PASSENGERS BY REGION (SCHEDULED)

2006/ 2007
2007/ 2008
2008/ 2009

36
Annual Report
37
Annual Report
08 / 09 08 / 09
 PASSENGER LOAD FACTOR BY REGION (SCHEDULED) WEIGHT LOAD FACTOR BY BY REGION (SCHEDULED)
EGYPTAIR AIRLINES

Total Available seat Kms (000)

PASSENGER LOAD FACTOR Total Passanger seat Kms (000)
Passanger Load Factor

Our passenger load factor has increased over the last 3 years from 63% to 68%.

38
Annual Report
39
Annual Report
08 / 09 08 / 09
 TOTAL SCHEDUAL BLOCK HOURS FLIGHTS PUNCTUALITY

TOTAL SCHEDULED BLOCK HOURS

EGYPTAIR AIRLINES Flights Punctuality Reaches to 86.4 % During FY 08/ 09

AVERAGE DAILY UTILIZATION

The total scheduled block hours increased by 8.7% during 2008 /09.
EGYPTAIR AIRLINES

40
Annual Report
41
Annual Report
08 / 09 08 / 09
 NETWORK AROUND THE WORLD
EGYPTAIR AIRLINES

Code Share Flights

42
Annual Report
43
Annual Report
08 / 09 08 / 09
 Code Share Agreements
with Star members

Reciprocal

MS Operating

Code Share Agreements

with non-Star members
EGYPTAIR AIRLINES

44
Annual Report
45
Annual Report
08 / 09 08 / 09
 EGYPTAIR AIRLINES
Profit and Loss Account at 30 /6 /2009 (EGP 000)
COSTS & EXPENDITURES

REVENUES

FINANCIAL STATEMENTS
EGYPTAIR AIRLINES
Statement of Financial Position at 30 /6/ 2009 (EGP 000)
EGYPTAIR AIRLINES

46
Annual Report
47
Annual Report
08 / 09 08 / 09