FlyEgypt Attempts to Declare Bankruptcy and Ceases All Flights

FlyEgypt has attempted to file for bankruptcy after accruing a significant amount of national and international debt. It has also subsequently ceased all flight operations. However, Egypt’s Civil Aviation Authority (ECAA) has as of yet rejected this request by FlyEgypt. The authority demands that FlyEgypt settle all of its outstanding debts before being able to liquidate. This has prompted legal proceedings between FlyEgypt and the ECAA.

Although the amount of debt in numbers has not been released, it is known that the airline’s international debts are linked to tour operators in Germany and Italy. Nationally, FlyEgypt is determined to be indebted to Egypt’s National Air Navigation Services Company. Along with this, the airline is also in debt to Egyptian airports and its employees’ privileges. The reason for such an amounted debt is still undisclosed.

History of FlyEgypt

Founded in 2014, FlyEgypt began operations shortly after in 2015. As a single class charter operator, it offered frequent flights to 10 destinations before its collapse. These included European, Central Asian, African and Middle Eastern locations, with the airline’s headquarters in Cairo. It had a fleet comprised of eight Boeing 737-800’s, which had a capacity of 189 passengers. Yet FlyEgypt would routinely codeshare (loan other aircraft) for completing its flights, pictured here using Ukrainian SkyUp Airlines.

What next?

Amid legal proceedings, it is still unclear if FlyEgypt will be able to pay back its outstanding debts. Yet, the ECAA will not allow it to liquidate until it is able to do so, potentially causing a deadlock between the two parties. With Egypt’s 12 other airlines, one of which being the state owned Egypt Air, there are many opportunities for to take FlyEgypt’s place and pick up the pieces of their downfall.

How do you think this will pan out? Let us know your thoughts in the comment below!