Egypt denies national air carrier layoffs

Egyptian cabinet yesterday refuted reports that a wave of staff layoffs was carried out by the country’s national air carrier, EgyptAir, after the latter said it would merge its subsidiaries to rationalise expenditures.

In an official statement, the cabinet’s media centre said that it had been in contact with the Ministry of Civil Aviation on the matter, stressing that the news was “groundless.”

“EgyptAir is intending to implement a restructuring reform to its subsidiaries, in compliance with international standards, without laying off any of its employees,” the statement said, adding that the company aimed to “raise the efficiency of its employees, while preserving their full rights and financial dues.”

The cabinet called on media outlets and social media users “to seek accuracy from the respective authorities before publishing any news,” warning that rumours were causing “confusion among the company’s employees and the Egyptian citizens.”

EgyptAir’s CEO, Rushdi Zakaria, said on Monday that his company was seeking “financial assistance from the Egyptian government amounting to 5 to 7 billion Egyptian pounds ($317.84 million to $444.98 million) to help pay salaries, outstanding loans and aircraft leasing fees,” as a result of the coronavirus pandemic.

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