Lebanese flag carrier Middle East Airlines (MEA) will float up to a quarter of its shares on the Beirut stock exchange this autumn. The planned release of 20-25% of its shares, presently held by the Central Bank of Lebanon, represents a change of emphasis by the government, which had initially proposed to float only 10% of the airline.
Privatisation has been in the works for several years, but market conditions and losses at the airline forced the government to hold back. However, a major restructuring, which resulted in net profits of $22 million in 2003 and $50 million in 2004, with a further positive result believed to have been achieved last year, has convinced the government and airline that the time is now right.
The decision of the SkyTeam governing board in January to back MEA’s application to join the global alliance as an associate member provided a further boost towards a brighter future for the airline. MEA, which celebrated its 60th anniversary last year, serves 26 destinations in Europe, Africa and the Middle East with an all-Airbus fleet. ■
Source: Airline Business
