- Bankruptcy declared on October 21, 2024
- Flights from Cairo and Sharm El Sheikh cancelled
- ECAA demands debt repayment before liquidation
- Legal struggles between flyEgypt and ECAA continue
flyEgypt, an Egyptian budget and charter airline, is plummeting towards financial ruin. Announced on October 21, 2024, the carrier initiated bankruptcy proceedings, immediately grounding its flights from Cairo International and Sharm El Sheikh International airports.
An alarming number of airlines have declared bankruptcy this year, including Air Malta, Armenia’s FlyArna, Antigua’s regional airline LIAT, Canada’s Lynx Air, and Canada JetLines.
flyEgypt, with its headquarters in Cairo, suddenly ceased all services. Once operating nine aircraft, the company had dwindled to just one Boeing 737-800. Egyptian aviation authorities halted flyEgypt’s efforts to declare bankruptcy, which required the resolution of financial obligations before liquidation could continue.
Debt and Authority Interference
Founded in 2014, FlyEgypt has experienced a significant downturn and accrued substantial debts over time. Despite its October bankruptcy announcement, the Egyptian Civil Aviation Authority (ECAA) intervened, demanding debt clearance before granting permission to cease operations. The ECAA has rejected the airline’s request to surrender its operating license and deregister its remaining aircraft.
The airline’s primary creditors include tour operators from Italy and Germany, as well as several local Egyptian entities like Egypt’s National Air Navigation Services Company, various airports within Egypt, and the employee social security fund.
Tensions have escalated into a legal standoff as attorneys from both sides work to find a resolution. The ECAA maintains that flyEgypt must present a comprehensive plan to settle all debts before finalizing bankruptcy filings.
Aircraft Details and Fleet Downsizing
flyEgypt’s operations had dwindled to one leased Boeing 737-800, registered as SU-TMN and sourced from AerCap. Acquired by the carrier’s fleet in September 2021, this aircraft was due for lease expiration in September 2027. Its last flight was logged from Jeddah to Cairo on September 20 before entering maintenance at Cairo International Airport.
Amidst this bankruptcy confusion, the skies above Egypt are not as friendly as those involved await a resolution that will determine the airline’s future trajectory.
