By Mohamed Attia
Government efforts continue to elevate civil aviation sector, contributing to its regional and global competitiveness by engaging the private sector in the management and operation of Egyptian airports.
Prime Minister Moustafa Madbouli chaired a meeting to follow up on the proposed executive procedures from the Ministry of Civil Aviation for tendering the management and operation of airports to private companies.
The meeting was attended by Civil Aviation Minister Mohamed Abbas Halmi, Minister of Public Enterprises Sector Mahmoud Esmat, Chairman of the Egyptian Holding Company for Airports and Air Navigation, Mohamed Said Mahrous, Permanent Deputy of the Ministry of Civil Aviation Amani Metwally, and Magdy Isshak, Chairman of the Cairo Airport Company, along with relevant officials.
Madbouli emphasized the government’s commitment to enhancing the civil aviation sector to improve services for passengers and increase revenues by involving the private sector in the management and operation of Egyptian airports.
The meeting discussed several points related to the implementation of a strategy for developing Egyptian airports, focusing on optimizing airport infrastructure, improving operational efficiency, enhancing passenger experience, increasing revenue, promoting sustainability, and digital transformation. It also addressed the development of human resources capabilities by leveraging global expertise in this regard.
Additionally, the meeting addressed the selection of an experienced international consultant to develop a comprehensive plan for the tender process to manage Egyptian airports through a professional system for organizing passenger flow and service delivery. The largest and most specialised international companies in this field will be invited to participate in the tender.
Furthermore, criteria for technical and financial evaluation of consulting firms were reviewed, along with a proposed preliminary timeline for the tender process. Experts in civil aviation emphasised the importance of engaging the private sector in this vital industry, ensuring that partnerships are established according to state-defined criteria and strict procedures to protect the aviation sector. The private sector partner should possess international expertise beneficial to the civil aviation sector.
Alaa Ashour, former President of the Civil Aviation Authority and former President of EgyptAir Airlines, states that there are various types of cooperation with the private sector, with the most preferable being what was proposed in the recent meeting with the Prime Minister, which is to have management by private companies while state-owned assets protect the state’s assets.
He added that by co-operating with the private sector, Egypt will benefit in two ways: firstly, increasing state revenue due to the international expertise of the private company involved in management only, not in state assets; and secondly, improving passenger services at reasonable prices. He emphasised the need to succeed in this idea for two reasons: firstly, to attract more investment in other sectors in the aviation industry, and secondly, to attract more international travel and tourism to these airports.
Ashour continues by stating that implementation must be through contracts with specific objectives and under the supervision of a strong regulatory body of experts in the civil aviation sector, thereby achieving leadership for Egyptian civil aviation in the region. He affirmed that this step is bold and purposeful, especially since many airports in major countries are managed by private sector companies.
On the other hand, Engineer Abdel Aziz Fadel, former Minister of Aviation, believes that if we want to engage the private sector, we must take some important measures. This includes collaborating with a reputable global company, ensuring careful selection, tightening supervision, defining objectives, and maintaining economic aspects to prevent overpricing that may negatively affect air traffic and passenger numbers. He also stressed the importance of utilising Egyptian labour and training and qualifying them.
Abdel Fattah Kato, former President of the Civil Aviation Authority and former President of the Holding Company for Airports and EgyptAir Holding Company, said that engaging the private sector in airport management is not new to the aviation sector, citing Law No. 3 issued in 1997, which led to the establishment of Marsa Alam and El Alamein airports under the BOT system.
Hassan Mohamed Hassan, former President of SIAF Company at the Ministry of Aviation and professor at the Faculty of Tourism and Hotels at Helwan University, emphasizes the need to collaborate with the private sector in the current period. He points out that professional management undoubtedly has knowledge of civil aviation and its economics, as well as strategies for air transport industry, and that we need a professional private sector management. He noted that leveraging professional global management will provide Egyptian workers with international experience in the aviation field, preparing them for professional and international futures.
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