The tug of war for control of Lebanon's troubled carrier, Middle East Airlines (MEA), has seemingly come to an end with the government's approval of a crucial $100 million loan.
However, in mid-January the funds had yet to be released and there was uncertainty over whether the carrier's senior management would in exchange be forced to cede control of the airline's board. A source close to the carrier said prime minister Rafik al-Hariri's government had been withholding the funds in an attempt to install some of his supporters. The airline merely stated that so far the board remained unchanged.
The current chairman of MEA, Abdel-Hamid Fakhoury, is not considered close to the country's billionaire prime minister, though both are Sunni muslims. General manager Youssef Lahoud, a Maronite christian, is close to the powerful speaker of parliament, Nabbih Berri.
MEA says it needs a total of $200 million to modernise its dated fleet and infrastructure. Though MEA broke even in 1993, its financial position has since deteriorated and a loss is expected for 1994.
The airline's monopoly was broken at the end of the 16-year civil war in 1991, and there are now some 23 competitors serving Beirut, many offering low fares. The carrier has also lost much of the transit traffic that used to travel via the Middle East.
MEA's fleet is currently composed of five vintage Boeing 707s, three B747-200s, two Airbus A310s and one A300. The three Airbuses are on short-term lease from KLM and Polaris. The carrier is now looking at taking A310s and A320s or B737-400s, probably on operating lease.
MEA's fleet is currently composed of five vintage Boeing 707s, three B747-200s, two Airbus A310s and one A300. The three Airbuses are on short-term lease from KLM and Polaris. The carrier is now looking at taking A310s and A320s or B737-400s, probably on operating lease.
Source: Airline Business
