Lebanon Businessnews News
 

MEA's profits plummet
The carrier's Chairman sends a letter of objection to Hariri and Aridi
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The carrier’s net profits have dropped by $30 million over the last five months, compared to the same period last year. It has been losing $6 million per month since October due to the unfair competition from Arab and regional airlines, local media reports said citing sources.

Sources said that the unfair competition from Arab and regional airlines has been the primary cause to this situation. The Civil Aviation Authority has been granting permits to several regional and Arab airlines to operate additional flights. “This policy is threatening the carrier’s activity,” one source said.

Kuwait Airlines has been granted the permit to operate ten flights per week to Lebanon although the demand on the air route is low. Also the Turkish Airlines has boosted the number of flights on the Beirut-Istanbul air route to five per week but it rejected MEA’s request to increase the number of its flights to Turkey, the sources said.

The letter said that if the government does not “find a solution for the situation, then the airline will face critical circumstances, and it will be forced to migrate some of its air routes.”

Date Posted: Mar 22, 2010
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