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Tuesday, 27 September 2016

Lufthansa studies drastic alternatives to repatriating profits

LUFTHANSA LOOKING TO EXIT EGYPT? The German carrier is mulling whether to require that tickets it sells in Egypt be paid for in USD or by credit card — and is considering a moratorium on sales here entirely as a preliminary part of an exit strategy, Al Borsa quotes Country Sales Manager Zied Gueblaoui as saying. The company has had persistent problems repatriating cash and profits and expects to make a decision by November. In parallel, the company is working with global industry association IATA to pressure the Ismail government for a clear plan outlining how and when the funds will be repatriated. Lufthansa been unable to get as much as EUR 15 mn out of Egypt since January. The FX crisis has led a number of airlines to question their presence in the country, with the latest being KLM Royal Dutch Airlines, which announced earlier this month that it will indefinitely suspend flights to Cairo starting 8 January.

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