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Sunday, 18 September 2016

KLM suspends flights to Cairo over capital controls

KLM Royal Dutch Airlines will indefinitely suspend flights to Cairo starting 8 January 2017, according to a statement by the carrier last week, citing“the devaluation of the Egyptian pound and the decision of the Central Bank of Egypt to impose restrictions on the transfer of foreign currency out of Egypt.” Following the end of direct service in January, KLM will operate under Air France, running six flights a week from Amsterdam to Cairo with a layover in Paris. The International Air Transport Association (IATA) had said as recently as last month that they were “working together” with Egyptian authorities to repatriate blocked funds owed to foreign airlines after having named Egypt as one of the top five worst offenders globally (autoplay video) for blocking funds to airlines. The CBE and the Tourism Ministry are reportedly mulling solutions to address KLM’s concerns and will soon announce a framework to repatriate airline’s profits in Egypt, according to Al Borsa.

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