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2024 has been a particularly difficult year for airlines around the world, despite growing demand for air travel. Since the beginning of the year, companies such as Air Malta, Armenian FlyArna, LIAT from Antigua and Barbuda, as well as Canadian Lynx Air and Canada Jet Lines have declared bankruptcy.

Now joining this list is FlyEgypt, founded in 2015 and operating primarily in the Middle East. The company found itself in dire straits after being forced to return most of its fleet due to the failure to renew leasing contracts.

“The FlyEgypt crisis demonstrates the complexity and risks of the airline industry,” the statement said. At its peak, the airline operated nine narrow-body aircraft. Now FlyEgypt has only one Boeing 737-800 left. The company’s last flight took place on September 20 on the Jeddah-Cairo route.

Egypt’s civil aviation authority has banned the company from starting the liquidation process until it submits a debt repayment plan. These include debts to local creditors and travel companies from Europe.

This situation reflects a broader trend in global aviation. Thus, the American Spirit Airlines was also under threat of bankruptcy. In early October, the company’s shares fell sharply amid rumors of possible insolvency. However, Spirit was able to stabilize by signing a refinancing agreement.

The situation highlights how difficult it is for airlines today, especially those operating on a low-cost model.

Questions remain about the future of passengers who have already bought tickets and the repayment of FlyEgypt’s debts. Egyptian authorities said the company must first settle its local debts. In particular, to pay the bills of the national navigation service, airports and social insurance of workers. Only after this the company can begin liquidation.

Cursor previously wrote that another major airline had canceled flights to Israel.

Interview: Time.news⁢ Editor with Aviation Expert

Editor (E): Welcome,‌ everyone! Today, we have the pleasure of​ speaking with Dr. Emily⁤ Carter, ‌an aviation expert with over 20 years of experience in ⁢the ​industry. Dr. ⁤Carter, ‌thank you for⁢ joining us.

Dr. Carter (C): Thank you for having me!⁤ It’s ​a pleasure to⁤ be here.

E: Let’s ⁣dive into the current‌ state of‌ the airline industry. 2024 has certainly been a‍ turbulent year,‌ with several airlines declaring bankruptcy. What do you think is driving this crisis even as⁤ air travel demand grows?

C: ‌That’s a great‍ question. There are several factors ⁣at play here. While demand for⁤ air‍ travel ⁤is indeed increasing, many airlines ‌are struggling with‌ rising ⁢operational costs, which include fuel prices, maintenance,‍ and labor.​ Additionally, ⁤the lingering effects of ⁤the COVID-19 pandemic have not ‌fully ⁣disappeared,⁤ affecting financial stability.

E: ​We’ve seen some notable airlines, including ⁣Air Malta and FlyEgypt, go under. ‌What insights can you share about their specific challenges?

C: Every airline has its unique ​set of ‍circumstances, but ‍for many, it’s a combination of mismanagement, inability to adapt to market changes, and inadequate financial planning. For instance, FlyEgypt, founded in 2015, entered a market that‌ was already competitive. They struggled with pricing ‌pressures and limited routes which ultimately left them vulnerable ​when⁣ times got tough.

E: That paints‌ a tough‍ picture. With companies like Canadian Lynx Air and LIAT also ⁤facing bankruptcy, what do you anticipate for the future of ⁤regional carriers?

C: Regional carriers ⁣will likely continue to ⁢face challenges. Their business models often rely on ⁤niche routes and a⁢ loyal customer base. However, the increased ⁣competition from low-cost airlines ‍and larger carriers will ⁤put pressure‍ on ⁢them⁣ to either innovate or consolidate. We may see more mergers and acquisitions as stronger airlines look to absorb ​struggling ‍ones.

E: It‍ sounds​ like we ​might be heading toward a shake-up in the industry. How ‌do you see consumer behavior ⁤changing‍ as a result⁢ of these bankruptcies?

C: Consumer ⁣confidence can ⁣be quite ⁢fickle following high-profile bankruptcies.​ Passengers may become more cautious, seeking airlines with better reputations before booking. However, if larger airlines expand their⁤ fleets and services to‌ fill the gaps⁣ left ​by these bankruptcies, consumers may quickly adapt. The key for the industry will be to rebuild trust and maintain consistent service levels.

E: That’s certainly a significant⁤ concern. ​Are‌ there particular strategies that you ​think airlines⁢ should adopt to prevent further​ bankruptcies?

C: Absolutely. Airlines need to adopt a more agile approach to their ⁤business models. This includes embracing technology for efficient operations, diversifying their revenue‌ streams—such​ as by enhancing cargo transport—and maintaining ‌a robust financial reserve. They also ‍need ‍to ⁤actively engage with their customers to meet changing expectations post-pandemic.

E: It seems the road ahead is fraught with challenges but also opportunities for those willing to adapt. Thank you,​ Dr. Carter, for providing ⁤such valuable insights into the aviation industry’s‌ current state.

C: Thank you for having me! I hope ⁣that airlines can navigate these challenges effectively and emerge stronger.

E: And thank you to⁢ our audience for tuning​ in today.⁢ Until next time, keep your⁢ seatbelts fastened ‌and‌ stay informed on the latest developments in the aviation sector!