Julian Moxon/BEIRUT
Middle East Airlines (MEA) is to drop all long haul routes and consolidate its fleet around short and medium range Airbus types, as part of its plan to move into profit within three years.
The airline is under new management appointed by its 99.9% owner, the Lebanese Central Bank. MEA found a buyer in 1997 for its three Boeing 747-200 combis and the last two aircraft will be phased out by June. Its six 707-300s will also go by the third quarter as MEA moves to an all-Airbus fleet.
The new president, Mohamad El Hout, says that negotiations are under way with Airbus for the purchase of two new A310-300s to join two 138-seat A320s, two 169-seat A321s and five 190-seat A310s (three -200s and two -300s).
The current fleet is leased, and El Hout says MEA's option to purchase the A320/A321s from lessor International Lease Finance "may be exercised" next year.
MEA will launch a new route network by April 1999, with the number of destinations cut from 33 to 20 but with frequencies per destination doubled. The airline has also begun negotiating a commercial alliance with its old ally Air France. The airline once held a 28.5% stake in MEA, but this has been reduced to less than 1%.
The Lebanese civil war shattered MEA's hitherto profitable operations. Operating losses have continued, standing at around $70 million in 1997. Most of the airline's profits came from its successful engineering business. This is being rebuilt through a deal signed on 2 April with French maintenance company Sogerma, which will see the new maintenance company Masco formed.
The new company will maintain Airbuses for MEA and other airlines in the region once JAR145 certification is granted - "hopefully by September" says Sogerma president Henri-Paul Puel.
Source: Flight International
