Annual report 2014-2015 Content

Overview

04 Chairman's letter 05 Board of Directors EGYPTAIR's 06 Group Corporate Structure Highlights Financial Review 07 Portfolio Nutshell 09 Executive Summary 17 Subsidiaries Financial Results 11 2015/16 Highlights 27 Financial Consolidated Results 12 Quality in Practice 13 Human Resources 14 Signposts of The Year

Performance Review

30 Fleet Management 33 Alliances 91 Corporate Social 36 Training Center & IT Responsibilities 42 Subsidiaries performance 04 Chairman's letter 05 Board of Directors 06 Group Corporate Structure 07 Portfolio Nutshell Overview Chairman the company. of to our companyfor chart acourseof the contributionmadewithsuchpassionandloyaltyinhelping uneasy successfor to theBoardofDirectors,Management In conclusion,I would liketoexpressmyappreciation Team andallthestaff evolution andprogressionneedsanactivecontribution moreef of EGYPTAIRemployees all to convince remain in theyearsahead At thesametime,still,challenges thatthelong-sought management andcostimprovement,whilstoptimizingournetwork. Thus, we will remainto inourlong-termplanwithafocusonbetterrevenue adhere to the strategiesandactionsenunciated successful cost-cuttingmeasuresthathavehelpedto offset decline inunitrevenuesattheairlines. some of the ongoing Also, overthepast years, wehavesoughtto expenditures. cut costs by reducing Thus, EGYPTAIR has adoptedseveral million EGP. EGYPTAIR In-Flight Servicesreachedasurplusof 27 millionEGP in FY 2015/16 comparedto FY2014/15, as it hit 15 achieved which one, fiscal EGP111million. previous to comparison in 2015/2016 year fiscal in million EGP200 of surplus a achieved It heavy maintenanceandoverhaul. to the more services providing in It isexpanding Borg al-Arab. and el-Sheikh; African and aircraft markets within Asian EGYPTAIRaudits amongwhichwastheEASAhas passedtheperiodic and Engineering Maintenance inCairo;Sharm million EgyptianpoundsitgainedinFY2014/15. industry.and higher-margin on afast-growing capitalize to 109 in FY2015/16compared IthitasurplusofEGP127million for EGYPTAIRpharma productshipments,anewactivitywhichisgoodopportunityandchallenge Cargo, inabidto EGYPTAIR to Cargo hasmanaged otherserviceslike address themassiveovercapacityin market throughlaunching to EGP 2millionithasachievedduringFY 2014/15. EGYPTAIRin FYa totalsurplusofEGP77million EXPRESSshowspositiveresultsasitachieved 2015/16incomparison through CairoInternational Airport asapivotal hub. North the cities and world’sFar-East and the the capital between offeringin connections thus, more continents, American of its route is meant for the most vital andpromisingmarkets, whether to major African citiesor to destinations long-haul EGYPTAIR routes. the networkvialong-andmedium-haul AIRLINES, focused morestronglyonexpanding The concentration count to69. total fleet the and 29 to type the of aircraft of number the increasing 2017, by fleet our join will aircraft nine whole The (DAE). Enterprise Dubai Aerospace and Boeing from 737-800 nine of back lease / sale / purchase a complete to able Fleet renewal plan has been conducted aiming to yield significant economies in terms of fuel and maintenance. We were Pricing andrevenuemanagement,Networkplanning,Crewmanagement,…) implementing a turnaround strategy to ensure the right resources, processes and plans are in place to optimize areas as ( serving 72 airports in 47countries. Rather thanaimingdirectlyfor growth wearecurrentlygoingthroughrestructuringand totalof8.51m.Wewith anannual hit 17.442billion operate220 daily departures, totalrevenue17.912billion. company achieved PassengerKm,it As forRevenue the challenges liquidity the of context in figures (2015/2016) year’s this at Looking impacted theoperatingandfinancialperformanceofgroup. a andfollowing plan. cost-reduction EGYPTAIR2016, Throughout that challenges facedvarious network, airlines’ the developing fleet, the modernizing includes portfolio. which plan, restructuring a major implementing towards Thus, westepped Wethe group rebalancing with afocuson opportunities new to seek continue of the integrity people weinvestin. reflect that ways in success attain to strives Holding EGYPTAIR While sectorsevolveandeconomieschange,weadaptourbusinesslast. Dear valuedstakeholders 's letter Thank youforyourcontinued trustandyoursupport. Safwat Mousallam fort foratangibletargettofulfill. EGYPTAIR HoldingCo. Chairman and CEO

4 Annual report 2015/2016 Board ofDirectors EGYPTAIR MAINTENANCE&ENGINEERING Eng. Abu Taleb Tawfiq Abu Taleb EGYPTAIR IN-FLIGHTSERVICES Elnahas Mr.Hamdy Ahmed Asherf EGYPTAIR CARGO Capt. BassemMohamedFouad Gohar EGYPTAIR EXPRESS Capt. Helmy Awad Rizk EGYPTAIR AIRLINES Sherif Azzet Capt. Subsidiaries Eng. IsmailMohammedSalemAbuElEzz Mr. HassanMohamedShehata Mr. MohamedKamal El-DinBarakat Capt. MohamedHamdyEl-Tahan Dr. Farouk AbdElBakiEl-Oqda Dr. AhmedMahmoudDarwish Safwat Sayed AbduMusallam Mr. Karem MahmoudYoussef Mr. AdelMahmoudEl-Morsi Mr. HishamAhmedOkasha EGYPTAIR HOLDING Mr. AbdEl-Aziz El-Shrbini Members Chairman EGYPTAIR SUPPLEMENTARY INDUSTRIES Eng. Hisham Abd El-Hafiez EGYPTAIR MEDICAL SERVICES Dr. Mohamed Adel Mazrou’ EGYPTAIR TOURISM (KARNAK)&DUTY FREE Mr.RadaMetwelly Aly EGYPTAIR GROUNDSERVICES Mr. Ahmed Mohamed Shaheen

5 Annual report 2015/2016 Group Corporate Structure Aerosport companyforsports&entertainmentservices Civil Aviation FinanceHoldingCompany(CIAF) Arab World Egypt Air Hotels(Lepassage) Aerotel forHotelsandTourism Services Misr Aswan Tourism Development Egyptian Aviation Services(EAS) United InternationalForTourism LSG SkyChefsCateringEgypt Taba Tourism Development Misr SinaiTourist Co. EAMS Company Smart Aviation CIAF-Leasing Company Air Cairo 25.71% 25.96% 32.5% 8.2% 10 % 29% 50% 60% 70% 10% 20% 20% 20% 25% %

6 Annual report 2015/2016 EGYPTAIR MAINTENANCE&ENGINEERING Portfolio Nutshell increase Total Revenue,relativeto GROWTHINthirdpartyrevenue the previousfiscalyear 16.6% 67% routes covering passengers 1.2 M 15 cities 20 EGYPTAIR EXPRESS EGYPTAIR AIRLINES large airlinesinordertoservemoredestinations Managing andoperatingthePerishableCenter (Horticulture ExportImprovement Association) at CairoInt’l Airport inconjunctionwithHEIA special prorateagreementswith EGYPTAIR CARGO weekly internationalflights Community worldwide. from Egyptianairports 25 25 serving in 47 647 countries 62 cities

7 Annual report 2015/2016 14Signpostsof The Year 13 12 QualityinPractice 11 2015/16Highlights 09 ExecutiveSummary Human Resources Highlights EGYPTAIR's

8 Annual report 2015/2016 ExecutiveSummary the developmentswhichhaveaffected theyearendresults. climbs upward.Weeconomy our networkintheFarEastandGulf. enhancing havecontinued review covers This executive the industryatitsbirth,EGYPTAIRPioneering as theworld development thepathwayforsustainable aimsatcontinuing of theexternalenvironment. EGYPTAIR’s about insight sufficient a providing 2016. at aims report The context the in value business generate to ability 30th June and 2015 1st July between period year financial the for EGYPTAIR’sperformance reviews report sector.This EGYPTAIR business of the public for thecompanies law 203/1991 with theEgyptian in line Report ispublished Annual enjoys the following: IOSA-IATAenjoys thefollowing: Safety Operational Audit, To mentionsomeofthe major accreditations,EGYPTAIR have we standards. industry aviation world’s position, the met successfully industry EGYPTAIR’s maintain To Performance isimproving,but onlyslowly. at51.1% in2016. which averagethelowestglobally factors, load adequate achieve to able are region the in costs arelower.and than average However, fewairlines factors are relativelylow, as yieldsarealittlehigher and theimpactoflowcommodityprices.Breakevenload years. Losses have emerged again due to regional conflict 3 past the in as region) weakest the is (Africa routes, few on except factor load adequate achieve to able not were the broad effect in the past years where African airlines suffered– had subsidiaries nine among – one Airlines economic growthandterrorismimpacts. EGYPTAIR inthefaceofmoderate momentum hasweakened upward rate but with its10yearaverage in line broadly 2015/2016, The globalpassengermarketgrewsolidlyduringFY The ContextofFY 2015/2016 with crisismanagementefforts. our teamhasbeeninvolved which spheres during variable EGYPTAIR Holding Co. has dealt with upsanddownsof 2011 andit and strength. has givenusmore resilience Wesince experience an exceptional through have been Backwith &Lease DAE. Sale by financed are them of Eight 2017. till December 2016 from December dates starting FYduring from Boeing B737-800 with delivery 2015/2016 seat capacity.increasing EGYPTAIRnine haspurchased aircraft or or renewing options asreplacing 2021 including AEGYPTAIR'sfor plan developing year until set was fleet FAA(FAR 145),…etc. 301,EASA ATO 0022,ICAO TRAINAIR PLUS,EASA 147, 14001, 18001,17025,22000,EASA 145,ISAGO, ECAR EASA-European AviationSafety Agency, ISOs9001,

9 Annual report 2015/2016 share. Air Cairo,inwhichEGYPTAIRhas amajority Holding growthopportunityfor This is takingplacewhileallowing 77million. EGP of profits achieved Express 2015/2016, EGYPTAIR year fiscal During routes. Mediterranean in in homemarketand its presence expanding continued this aspect of the business. EGYPTAIR Express has our regionalpresenceinfaceof in the developments Express Company,aims tofurtherenhance which EGYPTAIR portfolioofbrandsincludes EGYPTAIR Holding plans toattractnewbusinessespeciallythatofhighyield. in FYalternate this wasdonebyimplementing 2015/2016 achieved was taxes) (after EGP million 127 of surplus a by adecrease of25%.However level tons sameprevious in FYrecorded tons were to 11,511compared 2015/2016 of 9%. by adecrease level 8,677 As fortransitshipments, in FYcompared to39,010tonssameprevious 2015/2016 35,676 tons same previouslevel,Whileimportsrecorded 77,806 tonsinFYrecorded versus83,213tons 2015/2016 exports while traffic, cargo export in decline 6% brought peninsula (Embargo imposed to USA and Canada), which Sinai over 2015 31st, October on flight jet Metro of crash EGYPTAIRaffectedhas been company Cargo bythe client’s operation. growth ofour targeted marketstosupporttheprogressive deployment of intelligent EGME competencies across to 2014/2015. This growth hadbeenpoweredby the with animpressivegrowthof67%whencompared a 30%contribution by recording a breakthrough achieve EGYPTAIRto managed & Engineering Maintenance the thirdpartybusiness, increasing total incomethrough the EGME strategytoleverage Following expenses. costs & byactiveactionstooptimize to 12%supported tax) (before margin profit the prompted while turnovers; sustained itsEGP growth withmorethan2billion EGYPTAIRIn 2015/2016, & Engineering Maintenance over 2014/2015). 6% (by destinations domestic and 2014/2015) over 3% (by America 2014/2015), over 2% (by Africa 2014/2015), over 3% (by East Far the 2014/2015). in increased over consequently same LF respectively for 8% and increased 2% (by RPK's regions and 2014/2015) (by over America and 3% 2014/2015) over 9% (by East Middle EGYPTAIR increased Airlines Company ASK's inthe The OperatingPerformance:

10 Annual report 2015/2016 2015/16 Highlights 05 04 03 02 01 2014/2015 2014/2015 2014/2015 2014/2015 2014/2015 Cargo FlightsCarried 2015/2016 2015/2016 2015/2016 2015/2016 2015/2016 Express passengercarried Airlines ScheduleOperating results Holding Company NetProfit Total GroupActivity Revenue Export RPK Import ASK Transit No. offlight (000) 35.676 77.805 11.511 45.505 83.356 8.673 30.986 25.595 16.787 1.228 30.901 26.031 17.135 1.224 (000) Million 13.30 37.10 Million 17.734 EGP 17.297 EGP Kg Kg Kg Kg Kg Kg Million

11 Annual report 2015/2016 as toderive EGYPTAIR's benchmarks according totheinternational standards. Corporate Safety handlesallcommunication withtheIATA fortheexchangeofinternational grounddamagedata so 10.IATA Ground DamageDataBase (GDDB) EGYPTAIR's benchmarksaccordingtothe internationalstandards. Corporate Safetyhandlesall communication withtheIATA fortheexchangeofSafetydatasoas to derive 9.IATA SafetyTrend Evaluation Analysis DataExchangeSystem (STEADES) subsidiaries oruponrequestoftheV.P. ofsafetyqualityandcompaniesfollow-upinaddition totheChairman The corporatesafetydepartmenthandlesinvestigationsin accidents andincidentsthathappenbetweenany2 8.Accident andIncidentOccurrencesinvestigation andanalysis committee) presentedbycorporatesafetydepartment. regulation. SAFA ratiosarereviewedthrough2committees(CorporateSAFA committeeandPermanentSAFA Continual monitoringofEGYPTAIR's CorporateandindividualcarriesSAFA ratios,tomaintaincompliancewithEASA 7.Safety Audits ofForeign Aircrafts (SAFA) any externalentitythatrequiresustodoso. Periodic auditingofallthescopeswithinEGYPTAIR toassuretheconformitywithallregulationsappliedbyECAA or 6.Internal EvaluationProgram(IEP) carriers (Airlines,CargoandExpress)toassurethatsamestandardsareimplementedacrossEGYPT A highercommitteechairedbytheCorporatesafetyDepartmenttomaintainunifiedandcentralizedmanualsfor3 5.EGYPTAIR OperationsManuals that becomeseffective duringtheregistryperiodofIOSA certificate. The corporatesafetydepartmentoversightsthecontinualconformitywithIOSA 4.IATA OperationalSafety Audit (IOSA) Corporate IdentificationlistthatisimplementedwithinallEGYPT The corporatesafetydepartmentassurestheupdatingthroughSafetycommitteesandSAGmeetings,ofUnified 3.Hazard IdentificationList ICAO fourpillarsrequiredbytheICAO. according totheICAOstandardandRecommendedpractices.EGYPTAIR hasfullyimplementedSMSaccordingtothe The CorporateSafetydepartmentoversightstheSMSwithinEGYPTAIR toassurethemaintenanceofSMS 2.Safety ManagementSystem(SMS) System ofEGYPTAIR. periodical meetingisheldtodiscussandupdatesafetymeasuresimplementationplansfortheSafetyManagement A safetymeetingthatcomprisesalltheG.M.ofandQualitysubsidiariesholdingcompany. This 1.Safety Action Group(SAG) Quality inPractice AIR›s subsidiaries. requirementsagainstanynewregulation AIR. 's request.

12 Annual report 2015/2016 Settingvalues,mission,visionandclearHRstrategy, 8. Conducting“ERM”employee relationshipmanagement: 7. Leadershipdevelopmentprogram: 6. Co-operatingwithsabreconsultancyfirm. 5. Establishing“PMS”performancemanagementsystem. 4. Creatingawell-designedcareerplantothepooloftalents. 3. Creatingactual“TNA”trainingneedsanalysis. 2. Fullupdateto”jobdescriptions“transferredto“competencybaseddescriptions”. scenarios ofproper“businessmodel”soastocopewiththedynamicfiercecompetitions. several structure proposing integration” visitingoverallorganization ” verticalandhorizontal products full utilized units toproduce vertical andhorizontal structure bymerging 1.Organization Simplifying businesssoastoservetheoverallstrategicdirection: based onbeingHR“asastrategicpartner”. ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ For theyear2015-2016EGYPTAIR For theyear2015-2016EGYPTAIR In 2015/2016EGYPTAIR According toEGYPTAIR HR sectoradopteddevelopmentprocessessoasto cope 28442 trainees. AIRLINES organized2595Coursesfor technicians, andworkers. Pilots, engineers,employees, for 1996trainees,including CARGO organized212Courses training 4daysperemployee/year. efficient trainingplanwith Average GROUND SERVICES hadapproved During 2015/2016EGYPTAIR with IATA andICAOregulations. services accuratelyinaccordance having theskillstoprovideground aware ofthesafetyprocedures, efficient welltrainedstaff, fully GROUND SERVICES had5501 972 employeeswithapercentage95%. employees havebeentrainedoutof supplementary trainingplan,926 b) Socialmediaengagement a) Employeesatisfactionsurvey. program.development follow upreachingleadershipdevelopmentof2nd& 3rdsuccessors&leadership EGYPTAIR developmentdirection by fullyutilizing Training Needs Analysis & Training with thenationalstrategicdirectionofsustainability 2030 along

13 Annual report 2015/2016 Signposts ofTheYear 02 03 01 July ࿡ ࿡ ࿡ August ࿡ September ࿡ ࿡ ࿡ Mission. organized Egypt EGYPTAIR Tourism (KARNAK) visit touristattractionsinEgypt. of theceremonywhowouldliketo to theguests it provided programs Free Co.offered 20%discount on Tourism (KARNAK)andDuty ceremony, whileEGYPTAIR fares fortheguestsof discount onallitsinternational The nationalcarrieroffered 25% Canal›s inaugurationceremony. official carrierofthenewSuez EGYPTAIR AIRLINES wasthe ࿡ Cairo andN›Djamena. flights areoperatedbetween By thisprotocol,newcargo and Chad Trading Company. Sarco overseascompany a cooperationprotocolwith EGYPTAIR Cargosigned East. Service CenterintheMiddle as anEmbraer Authorized renewal ofauthorization & Engineeringco.gotthe EGYPTAIR Maintenance 's Hajjofficial 04 05 06 ࿡ ࿡ ࿡ ࿡ ࿡ December ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ November ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ October flights toLagosin Nigeria. co. passedEuropean Civil Aviation audit. EGYPTAIR Maintenance&Engineering over theworld. company inmorethan190locations all basic communicationsservicesin the communication networksthatprovide apply, manageandupdatethecompany' Boeing delegationinthecompany. EGYPTAIR aftertheinspections madeby performance andaviationsafetyin EU ACC3 securitytest. EGYPTAIR Cargo beganoperatingnew For the10thyearsuccessively, EGYPTAIR signedacontract withSITA to Boeing expertspraisedtechnical The SecuritysectorinEGYPTAIR passed first time since its building. first timesinceitsbuilding. ISAGO inBorgel- Arab Airport forthe goods. goods. to Moscowby A300B4 tocarry40-tons Egyptian exportsinSouthSudan. between CairoandJubaforservingthe protocol, newcargoflightsareoperated protocol withNova Aviation Co.Bythis standards inoperation. applying aviationsafety compliant airlinesin gives tothemost Safety Agency (EASA) AviationEuropean that Authorization (TCO) Third CountryOperator Cargo, andExpressgot EGYPTAIR Airlines, approval. Center gotCAAZ's EGYPTAIR Training EGYPTAIR AIRLINES between EGYPTAIR Airlines andIBM. renovated byathree-yearagreement was openedafterbeingdevelopedand EGYPTAIR GroundServicesgot EGYPTAIR Cargooperatedfirstflight EGYPTAIR Cargosignedacooperation call center callcenter s

14 Annual report 2015/2016 09 08 07 February ࿡ ࿡ January ࿡ ࿡ ࿡ ࿡ ࿡ March ࿡ ࿡ ground services. such astraining,maintenanceand Corporation (AVIC) inmanyfields Aero-Development International Understanding withtheChinese Signing amemorandumof passed TSAinspections The SecuritysectorinEGYPTAIR ࿡ ࿡ ࿡ ࿡ ࿡ flights toEUcountries. cargo andpassengersaircraft,esp. parcels, goodsandcargooutletson commission ofsecurityprocedures passed theinspectionsofEuropean The SecuritysectorinEGYPTAIR African countriescanbenefitfrom. airline industryandservicesthat company Engineering Co.toknowaboutthe EGYPTAIR Maintenanceand company, duringwhichtheyvisited in Cairotomakeatourthe countries inEgyptitsheadquarters and representativesof African EGYPTAIR hosted38ambassadors SYNLAB″ forthefirsttimeinEgypt. analysis ″SpanishLABCO&German one ofthebestgroupinmedical signed apartnershipcontractwith projects. projects. EGYPTAIR' services inadditiontoasking and meansofdevelopingcustomer with itsworkteamthejointplans progress itachievedanddiscussed CEO visitedEGYPTAIR, laudedthe EGYPTAIR. was graduated for thefirsttimein in detectingexplosiveswithX-Ray Central labsinEGYPTAIR hospital Star Alliance delegationheadedby A specialgroupofsecuritywomen 's potentials,expertisein s opinion in several future s opinioninseveralfuture 11 10 12 ࿡ ࿡ April ࿡ ࿡ ࿡ ࿡ ࿡ May June respectively. inspections forthe25thtime EGYPTAIRpassed TSA union commission. the headquartersof African at EGYPTAIRin Addis Ababa Inauguration ofthenew ࿡ ࿡ Organization (ICAO). Civil Aviation International Center passedtheauditof EGYPTAIR Training Africa. to repairthisunitinNorth be thefirstcertifiedcompany (IDG) units Test workshopto Integrated DriveGenerator. and Engineeringco.opened EGYPTAIR Maintenance ࿡ Accreditation Council). Accreditation Council). EGAC’s approval(theEgyptian EGYPTAIR hospitalgot

15 Annual report 2015/2016 27 FinancialConsolidatedResults 17 SubsidiariesFinancialResults Financial Review

16 Annual report 2015/2016 financedasfollows: Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Long- Term Loans And DebitBalances LONG- TERM investments Fixed Assets (net) STATEMENT OFFINANCIAL POSITION AT 30/06/2016 Wages. COSTS&EXPENDITURES Grants&Donations. EGYPTAIRCO. AIRLINES Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital Total investment(1+2) Working capital(2) Current Liabilities Total currentassets Total ofLong-termassets(1) Projects InProgress LONG - TERM ASSETS - LONG PARTICULARS EGYPTAIR AIRLINES CO. SURPLUS orDEFICIT Total Cost&Expenditures. Burdens &Losses. Purchases ofgoodsforsalepurposes . Expenditures. Raw Material,Requisites,Fuel &SpareParts. PARTICULARS Total Revenues Other Revenues&Profits. Investments Revenues&Interests. Activity Revenues. PARTICULARS REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016

-

(1,060,935,559) 15,201,784,178 410,537,726 9,161,254,561 4,509,295,863 2014/2015(EGP) 14,140,848,619 235,435,581 43,919,715 13,861,255,940 2014/2015(EGP) 1,120,696,028 237,383 (9,754,925,708) (9,769,856,918) (11,569,856,918) (9,754,925,708) (10,381,726,238) - 14,931,210 1,800,000,000

19,006,057,768 18,839,173,348 166,884,420 8,624,331,530 1,915,404,337 6,677,665,057 31,262,136

626,800,530 107,725,269 33,325,138 14,034,045 471,716,078 2014/2015(EGP)

(11,034,712,558) (11,049,511,958) (12,849,511,958) (11,034,712,558) (11,630,685,284) - 14,799,400 1,800,000,000

20,970,820,466 20,452,448,196 307,297,105 211,075,165 9,340,135,182 2,198,890,322 7,101,413,746 39,831,114

595,972,726 109,706,029 33,325,138 14,188,665 438,752,894 2015/2016(EGP) (1,279,655,040) 14,856,434,597 348,422,099 9,902,910,356 3,422,568,755 2015/2016(EGP) 13,576,779,557 73,325,356 64,526,691 13,438,214,047 2015/2016(EGP) 1,182,533,387 713,463

17 Annual report 2015/2016 financedasfollows: Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Long- Term Loans And DebitBalances LONG- TERM investments Fixed Assets (net) Wages. COSTS&EXPENDITURES Grants&Donations. STATEMENT OFFINANCIAL POSITION AT 30/06/2016 Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital Total investment(1+2) Working capital(2) Current Liabilities Total currentassets Total ofLong-termassets(1) Projects InProgress LONG - TERM ASSETS - LONG SURPLUS orDEFICIT Total Cost&Expenditures. Burdens &Losses. Purchases ofgoodsforsalepurposes . Expenditures. Raw Material,Requisites,Fuel &SpareParts. PARTICULARS Total Revenues Other Revenues&Profits. Investments Revenues&Interests. PARTICULARS Activity Revenues. PARTICULARS REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 EGYPTAIR MAINTENANCE&ENGINEERINGCO. EGYPTAIR MAINTENANCE &ENGINEERINGCO.

111,126,061 1,647,902,630 - 1,759,028,691 - 77,742,227 585,390,306 656,748,690 328,021,407 2014/2015(EGP) 52,104,446 356,810 1,706,567,435 2014/2015(EGP) 853,123,630 14,429,633 838,693,997 338,693,997 500,000,000

853,123,630 300,999,767 527,065,059 441,705,884 25,251,152 60,108,023 828,064,826 41,271,044 322,796,078 463,997,704

552,123,863 92,829 43,735,510 185,496,034 322,799,490

2014/2015(EGP)

938,946,952 1,551,886 937,395,066 437,395,066 500,000,000

938,946,952 330,499,699 572,935,721 454,781,899 45,950,361 72,203,461 903,435,420 20,280,566 412,889,545 470,265,309

608,447,253 874,584 43,985,510 120,396,462 443,190,697

2015/2016(EGP) 199,702,829 1,851,147,308 - 2,050,850,137 - 99,247,597 655,229,227 709,231,457 387,439,027 2015/2016(EGP) 32,216,065 1,648,954 2,016,985,118 2015/2016(EGP)

18 Annual report 2015/2016 financedasfollows: Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions CurrentLiabilities Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Long- Term Loans And DebitBalances LONG- TERM investments Fixed Assets (net) STATEMENT OFFINANCIAL POSITION AT 30/06/2016 Grants&Donations. COSTS&EXPENDITURES Wages. Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital Total investment(1+2) Working capital(2) Total currentassets Total ofLong-termassets(1) Projects InProgress LONG - TERM ASSETS - LONG PARTICULARS REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 EGYPTAIR GROUNDSERVICES CO. PARTICULARS EGYPTAIR GROUNDSERVICES CO. Activity Revenues. Investments Revenues&Interests. Other Revenues&Profits. Total Revenues PARTICULARS Raw Material,Requisites,Fuel &SpareParts. Expenditures. Burdens &Losses. Purchases ofgoodsforsalepurposes . Total Cost&Expenditures. SURPLUS orDEFICIT

9,688,706 - - 354,400,975 320,380,693 354,400,975 564,284,845 573,973,551 344,712,269 2014/2015(EGP) 650,596,661 1,024,707 22,107,204 673,728,572 2014/2015(EGP) 51,943,708 432,575,750 155,873,933 15,152,659 655,546,050 18,182,522 34,020,282 140,380,693 180,000,000

244,611,208 306,290,258 13,383,379

14,535,681 453,201,759 106,236,111

374,535 28,261,375 24,825,014 291,251,345

2014/2015(EGP)

184,345,754 149,498,283 184,345,754 (155,087,670) 979,748,096 824,660,426 339,433,424 - - 34,847,471 (30,501,717) 180,000,000

384,959,774 574,861,928 19,926,394

18,933,729 694,022,910 111,703,787

1,533,418 28,261,375 20,380,837 289,257,794

2015/2016(EGP) 2015/2016(EGP) 577,360,101 884,380 18,551,226 596,795,707 2015/2016(EGP) 55,326,588 468,948,796 158,911,052 79,683,605 762,870,041 (166,074,334)

19 Annual report 2015/2016 financedasfollows: Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions CurrentLiabilities Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Long- Term Loans And DebitBalances LONG- TERM investments Fixed Assets (net) EGYPTAIR IN-FLIGHT SERVICES CO. STATEMENT OFFINANCIAL POSITION AT 30/06/2016 Grants&Donations. COSTS&EXPENDITURES Wages. Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital Total investment(1+2) Working capital(2) Total currentassets Total ofLong-termassets(1) Projects InProgress PARTICULARS REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 LONG - TERM ASSETS - LONG EGYPTAIR IN-FLIGHT SERVICES CO. Activity Revenues. PARTICULARS Investments Revenues&Interests. Other Revenues&Profits. Total Revenues PARTICULARS Raw Material,Requisites,Fuel &SpareParts. Expenditures. Purchases ofgoodsforsalepurposes . Burdens &Losses. Total Cost&Expenditures. SURPLUS orDEFICIT

(22,832,377)

15,085,922 109,971,600 63,132 109,908,468 59,908,468 50,000,000

109,971,600 210,519,608 184,186,741 14,654,353 11,678,514

187,687,231 15,065,598 130,695,025 41,926,608

132,803,977 1,446,271 35,417,330 13,803,797 82,136,579

2014/2015(EGP) - 2014/2015(EGP) 452,397,576 8,830,491 7,344,098 468,572,165 2014/2015(EGP) 128,203,261 191,761,766 72,228,397 47,110,375 14,182,444 453,486,243

- (6,500,212)

27,138,520 135,489,536 135,489,536 85,489,536 50,000,000

135,489,536 217,169,901 192,879,642 5,752,995 - 18,537,264

210,669,689 8,441,454 166,971,510 35,256,725

141,989,748 1,132,001 35,417,330 14,004,485 91,435,932

2015/2016(EGP) 2015/2016(EGP) 478,955,738 6,024,692 6,841,679 491,822,109 2015/2016(EGP) 126,536,054 199,573,258 73,874,621 47,402,743 17,296,913 464,683,589

20 Annual report 2015/2016 Wages. COSTS&EXPENDITURES Grants&Donations. financedasfollows: Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions CurrentLiabilities Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Long- Term Loans And DebitBalances LONG- TERM investments Fixed Assets (net) STATEMENT OFFINANCIAL POSITION AT 30/06/2016 SURPLUS orDEFICIT Total Cost&Expenditures. Purchases ofgoodsforsalepurposes . Burdens &Losses. Expenditures. Raw Material,Requisites,Fuel &SpareParts. PARTICULARS Total Revenues Other Revenues&Profits. Investments Revenues&Interests. Activity Revenues. Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital Total investment(1+2) Working capital(2) Total currentassets Total ofLong-termassets(1) Projects InProgress TERM ASSETS - LONG PARTICULARS REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 EGYPTAIR CARGOCO. PARTICULARS EGYPTAIR CARGOCO.

- (88,599,977) - - 109,520,149 682,673,864 69,682,894 296,329,553 141,202,786 175,458,631 2014/2015(EGP) 792,194,013 52,355,473 1,128,474 64,037 738,646,029 2014/2015(EGP) 279,986,339 279,986,339 214,986,339 65,000,000 279,986,339 328,894,334 368,586,316 5,816,139 417,494,311 400,590,118 16,904,193 45,334,700 278,256,419 5,303,215 26,416,982 2,300,000 334,053,195 2014/2015(EGP)

- (44,109,842) - 127,075,816 627,445,524 48,169,385 312,684,460 129,363,334 137,228,345 2015/2016(EGP) 754,521,340 77,937,057 2,162,720 42,320 674,379,243 2015/2016(EGP) 324,942,059 324,942,059 259,942,059 65,000,000 324,942,059 450,316,543 369,051,901 46,700,517 494,426,385 334,359,451 134,188,639 25,878,295 73,302,116 371,332,844 5,681,583 27,210,305 2,350,000 292,791,079 2015/2016(EGP)

21 Annual report 2015/2016 Fixed Assets (net) STATEMENT OFFINANCIAL POSITION AT 30/06/2016 Long- Term Loans And DebitBalances LONG- TERM investments Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions CurrentLiabilities financedasfollows: Wages. COSTS&EXPENDITURES Grants&Donations. EGYPTAIR TOURISM (KARNAK)&DUTY FREECO. LONG - TERM ASSETS - LONG PARTICULARS Projects InProgress Total ofLong-termassets(1) Total currentassets Total investment(1+2) Working capital(2) Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital SURPLUS orDEFICIT Total Cost&Expenditures. Burdens &Losses. Purchases ofgoodsforsalepurposes . Expenditures. Raw Material,Requisites,Fuel &SpareParts. PARTICULARS Total Revenues Other Revenues&Profits. Investments Revenues&Interests. Activity Revenues. PARTICULARS REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 EGYPTAIR TOURISM (KARNAK)&DUTY FREECO.

- 86,467,442 1,240,058,557 22,290,085 523,091,395 497,069,655 186,200,559 11,406,863 2014/2015(EGP) 1,326,525,999 55,763,447 764,318 1,269,998,234 2014/2015(EGP) 2014/2015(EGP) 41,803,533 9,509,935 13,092,766 3,450,000 67,856,234 64,153,760 148,034,955 318,115,034 530,303,749 348,215,930 291,975,592 35,874,791 20,365,547 249,944,053 182,087,819

249,944,053 2,372,072 247,571,981 197,571,981 50,000,000

- 7,881,065 1,098,290,482 36,571,094 403,423,992 457,114,133 187,109,396 14,071,867 2015/2016(EGP) 1,106,171,547 48,797,731 1,063,888 1,056,309,928 2015/2016(EGP) 2015/2016(EGP) 41,141,063 16,037,541 12,906,558 3,525,000 73,610,162 52,125,902 331,814,584 299,755,356 683,695,842 564,484,386 370,606,435 174,037,290 19,840,661 192,821,618 119,211,456

192,821,618 2,152,286 190,669,332 140,669,332 50,000,000

22 Annual report 2015/2016 financedasfollows: Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions CurrentLiabilities Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Long- Term Loans And DebitBalances LONG- TERM investments Fixed Assets (net) Wages. PARTICULARS COSTS&EXPENDITURES Grants&Donations. STATEMENT OFFINANCIAL POSITION AT 30/06/2016 Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital Total investment(1+2) Working capital(2) Total currentassets Total ofLong-termassets(1) Projects InProgress SURPLUS orDEFICIT Total Cost&Expenditures. Burdens &Losses. Purchases ofgoodsforsalepurposes . Expenditures. Raw Material,Requisites,Fuel &SpareParts. Total Revenues Other Revenues&Profits. Investments Revenues&Interests. Activity Revenues. PARTICULARS REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 EGYPTAIR MEDICAL SERVICES CO. TERM ASSETS - LONG PARTICULARS EGYPTAIR MEDICAL SERVICES CO.

18,561,556 14,575,942 1,968,825 - 387,881,980 2,511,490 48,573,701 205,414,210 406,443,536 1,822,897 523,509 400,000,445 2014/2015(EGP) 131,382,579 2014/2015(EGP) 4,096,685 108,766,762 22,590,820 86,175,942 71,600,000

108,766,762 189,045,070 177,283,775 6,965,295 4,796,000 191,013,895 4,867,960 152,335,730 33,810,205 106,797,937 16,220,059 3,450,000 4,291,580 82,836,298 2014/2015(EGP) 14,356,163 12,213,841

- 25,741,236 119,938,667 22,597,431 97,341,236 71,600,000

119,938,667 193,882,598 185,284,330 3,927,268 4,671,000 208,238,761 18,328,085 153,394,770 36,515,906 105,582,504 14,577,579 3,525,000 9,936,213 77,543,712 2015/2016(EGP) 414,391,933 4,195,943 49,140,407 220,055,104 426,605,774 1,891,310 1,052,095 419,588,132 2015/2016(EGP) 141,000,479 2015/2016(EGP) 4,074,237

23 Annual report 2015/2016 financedasfollows: Total currentliabilities Suppliers,NotesPayable And Credit Accounts Creditorbanks Provisions CurrentLiabilities Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Long- Term Loans And DebitBalances LONG- TERM investments Fixed Assets (net) Wages. PARTICULARS COSTS&EXPENDITURES Grants&Donations. PARTICULARS STATEMENT OFFINANCIAL POSITION AT 30/06/2016 Total financingofinvestment(3+4) Long - Term Liabilities(4) Total Equity(3) Paid UpCapital-Reserves Issued capital Total investment(1+2) Working capital(2) Total currentassets Projects InProgress SURPLUS orDEFICIT Total Cost&Expenditures. Burdens &Losses. Purchases ofgoodsforsalepurposes . Expenditures. Raw Material,Requisites,Fuel &SpareParts. Total Revenues Other Revenues&Profits. Investments Revenues&Interests. Activity Revenues. REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 EGYPTAIR SUPPLEMENTARY INDUSTRIAL CO. Total ofLong-termassets(1) TERM ASSETS - LONG PARTICULARS EGYPTAIR SUPPLEMENTARY INDUSTRIAL CO.

(834,271) (113,129) (18,508,181) (8,335,905) 9,477,834 - 120,467,777 3,386,808 13,227,586 29,749,378 119,633,506 864,278 250,196 75,887,961 74,217,134 2014/2015(EGP) 42,631,071 2014/2015(EGP) 32,517,857 1,026,038 31,491,819 50,000,000 32,517,857 45,917,189 4,953,515 54,253,094 37,181,190 7,594,070 2,815,955 13,229,965 29,871,269 542 35,899,705 40,853,762 2014/2015(EGP) 227,910 561,790

(18,280,271) - - - 123,101,463 6,879,153 4,003,665 13,900,912 31,065,877 123,329,373 1,577,322 211,595 85,909,385 67,251,856 2015/2016(EGP) 35,631,071 2015/2016(EGP) 33,071,406 1,351,677 31,719,729 50,000,000 33,071,406 69,997,205 764,036 69,435,415 60,223,925 9,211,490 1,822,775 37,928,996 30,245,434 31,745,580 32,509,616 2015/2016(EGP)

24 Annual report 2015/2016 Wages. PARTICULARS COSTS&EXPENDITURES Grants&Donations. STATEMENT OFFINANCIAL POSITION AT 30/06/2016 PARTICULARS EGYPTAIR DOMESTIC®IONAL AIRLINES (EXPRESS)CO. Fixed Assets (net) LONG- TERM investments Long- Term Loans And DebitBalances Cashinbanksandhand Customers,NotesReceivables And Debit Accounts Stock Currentassets Creditorbanks Provisions CurrentLiabilities Total currentliabilities Suppliers,NotesPayable And Credit Accounts financedasfollows: SURPLUS orDEFICIT Total Cost&Expenditures. Purchases ofgoodsforsalepurposes . Burdens &Losses. Expenditures. Raw Material,Requisites,Fuel &SpareParts. Total Revenues Other Revenues&Profits. Activity Revenues. Investments Revenues&Interests. PARTICULARS EGYPTAIR DOMESTIC ®IONAL AIRLINES (EXPRESS)CO. REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 LONG - TERM ASSETS - LONG Projects InProgress Total ofLong-termassets(1) Total currentassets Working capital(2) Total investment(1+2) Issued capital Paid UpCapital-Reserves Total Equity(3) Long - Term Liabilities(4) Total financingofinvestment(3+4)

2,007,941

- - - - 839,209,224 23,421,157 569,644,495 221,598,257 24,545,315 841,217,165 2014/2015(EGP) 15,855,004 825,006,701 355,460 2014/2015(EGP) 2014/2015(EGP) 6,470,567

1,082,206 1,618,355 6,540,489 590,730,085 -

9,171,128 4,719,557

597,270,574 453,877,972 449,158,415 143,392,602

152,563,730 250,000,000 (97,477,572) 152,522,428 41,302 152,563,730

77,812,617

- - - - - 2015/2016(EGP) 574,544

139,440 4,296,349 7,574,861 742,758,012

5,010,333 9,719,557

750,332,873 552,808,952 543,089,395 197,523,921

202,534,254 250,000,000 (47,502,843) 202,497,157 37,097 202,534,254 880,631,500 12,148,097 664,885,822 174,235,947 29,361,634 958,444,117 2015/2016(EGP) 1,340,215 956,486,029 617,873 2015/2016(EGP)

25 Annual report 2015/2016 STATEMENT OFFINANCIAL POSITION AT 30/06/2016 EGYPTAIR HOLDINGCO. Wages. PARTICULARS COSTS&EXPENDITURES Grants&Donations. PARTICULARS Fixed Assets (net) LONG- TERM investments Long- Term Loans And DebitBalances Currentassets Stock Customers,NotesReceivables And Debit Accounts Cashinbanksandhand CurrentLiabilities Provisions Creditorbanks Suppliers,NotesPayable And Credit Accounts Total currentliabilities financedasfollows: PARTICULARS EGYPTAIR HOLDINGCO. SURPLUS orDEFICIT Total Cost&Expenditures. Burdens &Losses. Purchases ofgoodsforsalepurposes . Expenditures. Raw Material,Requisites,Fuel &SpareParts. Total Revenues Other Revenues&Profits. Investments Revenues&Interests. Activity Revenues. REVENUES THE RESULT ACCOUNTS FROM1/7/2015 TO 30/6/2016 LONG - TERM ASSETS - LONG Projects InProgress Total ofLong-termassets(1) Total currentassets Total investment(1+2) Working capital(2) Issued capital Paid UpCapital-Reserves Total Equity(3) Long - Term Liabilities(4) Total financingofinvestment(3+4)

(2,611,965,965) 37,101,319 2,575,856,071 861,459,880 2,299,372 1,394,101,692 18,046,861 2,612,957,390 91,375,845 84,534,845 2,388,098,453 299,948,266 2014/2015(EGP) 48,948,247 2014/2015(EGP) 2014/2015(EGP)

13,648,441,422 35,045,623 3,963,401,530 512,921 17,647,401,496

17,364,660 866,288,225 75,351,421 959,004,306

1,221,948,934 1,367,568,278 981,453,059 3,570,970,271 15,035,435,531

4,078,806,000 1,693,602,369 5,772,408,369 9,263,027,162 15,035,435,531 (2,788,419,615) 13,305,854 2,907,700,612 1,155,847,614 438,774 1,414,533,049 22,220,794 2,921,006,466 170,892,886 20,904,193 2,687,399,804 314,660,381 2015/2016(EGP) 41,809,583 2015/2016(EGP) 2015/2016(EGP)

12,690,986,266 200,819,650 3,955,938,991 350,400 16,848,095,307

23,731,108 1,224,048,360 108,619,036 1,356,398,504

1,322,634,504 1,675,249,513 1,146,934,102 4,144,818,119 14,059,675,692

4,078,806,000 1,711,805,809 5,790,611,809 8,269,063,883 14,059,675,692

26 Annual report 2015/2016 FinancialHighlights company the Current ratioremainsoverallstablewithaslightincrease and thisisprojectedtocontinueincrease,enhancing in turnhasbeenreflectedonthecompany The slight decrease in General and Administrative Expenses indicates the opertional efficiancy within have enhancedpoliticalstabilityandthismacroeconomicoverview isreflectedontheEGYPT and achieving financial sustainability were implemented throughout the previous citizens and current fiscal years. on These reforms reflect directly would that results of living. standards To economic activity,economic at spurring thatend,structuralreformsaimed protection social strengthening tangible achieving to tirelessly engaged is government The Financial ConsolidatedResults BeginningBalanceofCash&Equivalents Cash &EquivalentsBalanceatEnd Net ChangeinCash&Equivalents Net CashFlowsfromFinancing Activites Net CashFlowsfromInvesting Activities Net CashFlowsfromOperating Activities Cash Flow Long TermLiabilities Current Liabilites term Assets Long Current Assets Summary of Assets &Liabilities Profit Before Taxation Other Revenues/Expenses Finance Cost Operating Profit(Loss) Sales &MarketingExpense General & Administrative Expenses Other OperatingRevenue Gross profitmargin Gross profit Cost ofServices Total Revenue The GroupFinancialResults 's liquidityandallowingtheratiotoreach1sothatcurrent assetscancoverthecurrentliabilities. 's netmargins. 2,508,318,846 2,185,340,946 322,977,900 77,266,075 553,630,202 8,346,401,132 24,796,083,046 16,103,102,975 10,610,105,327 252,941,965 113,748,726 3,028,740,144 17,297,653,274 (307,918,377) (1,035,409,968) (1,009,477,781) (278,874,152) (1,624,330,332) (1,265,216,573) (14,268,913,130) 17.5% June 30/2016 2,185,340,946 1,872,519,054 312,821,892 2,024,793,566 9,352,501,652 21,038,464,218 16,880,507,514 9,058,535,042 196,003,980 2,739,162,994 17,734,218,137 (1,278,143,652) (39,211,348) (433,828,024) (676,815,577) (375,015,403) (262,588,826) (1,484,188,253) (1,490,190,069) (14,995,055,143) 15.4% June 30/2015 AIR figures. EGYPTAIR which 15% 17% 3% -106% -73% -11% 18% -5% 17% 745% -42% 11% -2% 29% 53% 169% 6% 9% -15% 2% -5% % Change

27 Annual report 2015/2016 5,000,000,000 10,000,000,000 15,000,000,000 20,000,000,000 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% June 30/2015 Long TermLiabilities Long TermLong Assets Current Liabilities Total Revenue Current Assets June 30/2015 15.4% Cost ofServices June 30/2016 17.5% June 30/2016 Long TermLiabilities Long TermLong Assets Current Assets Current Liabilities Gross Profitmargin 14.0% 14.5% 15.0% 15.5% 16.0% 16.5% 17.0% 17.5% 18%

28 Annual report 2015/2016 42 Subsidiariesperformance 36 33 Alliances 30 Training Center&IT Fleet Management Performance Review

29 Annual report 2015/2016 Fleet Plan2021willhelpEGYPTAIR tocompetewithworldwideairlines co. best qualityforourcustomers. the provide to IFE full with seats class economy (138) and seats class business (16) with provided be will aircraft (9) The to thoseaircraftwithDAE. from B737-800 (8) purchased has EGYPTAIR transaction. in Boeing Back & Lease a Sale then made 2017 till December 2017 dates startingfromFebruary with delivery 2016 April above the of light in and policy EGYPTAIR’s to According (1) B737-800. flexibility, more have to order however in as a good years finance wasfive available from USAID,next so EGYPTAIRthe hasduring decided topurchase use the availableversus finance to purchase lease the expand to is policy EGYPTAIR’s EGYPTAIR FleetPlan: including 2021 year until options asreplacement,renewingorincreasingseatcapacity. set was fleet Egyptair,s for plan developing a goals these achieve to order In hub. a being as ofCairo thebestutilization and thecompany by fleet strategyadopted and network to acombined according done Airport be will This fleet. its Egyptair,sand in network destinations both in development include will Egyptair for vision future The Fleet Management

30 Annual report 2015/2016 EGYPTAIR Fleet No ofSeat:144/145 Wing Span:34.30 m Length: 39.50m Fleet No:20 Type B.737/800 No ofSeat:144/145 Wing Span:34.10m Length: 37.57m Fleet No:12 Type A.320/200 No ofSeat:104 Wing Span:28.88m Length: 33.40m Fleet No:4 Type B.737/500 No ofSeat:161 Wing Span:34.10 m Length: 44.51m Fleet No:4 Type A.321/200 No ofSeat:268 Wing Span:60.30 m Length: 59.00m Fleet No:7 Type A.330/200 No ofSeat:260 Wing Span:60.30 m Length: 59.40m Fleet No:3 Type A.340/200 No ofSeat:301 Wing Span:60.30 m Length: 63.69m Fleet No:4 Type A.330/300 No ofSeat:346 Wing Span:60.93m Length: 73.90m Fleet No:6 Type B.777/300ER No ofSeat:319 Wing Span:60.93m Length: 63.70m Fleet No:4 Type B.777/200ER

31 Annual report 2015/2016 animals, courierandgeneralgoods. live materials, hazardous perishables, Transport can fleet France, theUnited Arab Emirates and Sudan. The Cargo Belgium, with hubsintheUnitedKingdom, destinations, EGYPTAIRserves anetworkofmorethan67 Cargo EGYPAIR Cargo region. EGYPTAIR Express fleet currently has 12 has currently fleet Brazilian-made Embraeraircraft. Express EGYPTAIR region. in theMediterranean domestic routesanddestinations EGYPTAIR inmid2007tocover Expresswaslaunched of EGYPTAIRThe newestsubsidiary Company, Holding EGYPTAIR Express Commercial load:45tons Capacity: 320m Wing Span:44.84m Length: 54.08m Fleet No:2 Type300/600RF A. 3 Commercial load:40tons Capacity: 289m Wing Span:44.84m Length: 54.08m Fleet No:1 Type300/B4 A. No ofSeat:76 Wing Span:26.00m Length: 29.90m Fleet No:12 Type Embraer-ERJ170 3

32 Annual report 2015/2016 Alliances Alliancesandcooperationagreements ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ the evaluationofStar Alliance fullcarrieraudit,scoring100%inOctober2016. In the context of the Star Alliance membership requirements, EGYPTAIR has successfully passed operating carrierto25points. total of 17 Agreements, whereEGYPTAIR is the marketing carrierto 38 pointsnot served; andthe EGYPTAIR hasreneweditscodeshareagreementsforsummerseason2015/2016,whicharea code-shares withmajorStar Alliance membersaswellwithothernon-Star Alliance carriers. Although it is not a requirement that Star Alliance members code-share with each other, EGYPTAIR Its sloganis»theWay theEarthConnects». Partner (1.5%),LowCostCarriers(18%). Airways Etihad (17.1%), carriers alliance non other (19.2%), World ,One (19.1%) TeamSky to In 2015, Star Alliance preserved its top ranking with a (23.5%) market share (ASK) when compared of 28members. EGYPTAIRin Star its membership reach through extendsitsglobal is comprised which Alliance that enhancesitssalescapacity. Such arrangementsprovideEGYPTAIR with aneffective way to expand andbroadenits network aspect ofEGYPTAIR’s businessstrategy. important an to be continues carriers international with alliances ofcommercial The development EGYPTAIR isamemberofStar Alliance sinceJuly11th 2008. Star Alliance membershipandcodeshareagreementsenhanceitsmarketpresence

34 Annual report 2015/2016 EgyptAir serves 62 Cities in 47 Countries, and 35 cities via Code share

Helsinki Oslo Stockholm Aalborg Gotenborg Arhus Copenhagen Moscow Amsterdam Manchester Dusseldorf Berlin London Frankfurt Brussels Prague Kiev Paris Munich Zurich Budapest Star Alliance Montreal Geneva Vienna Milan Toronto Almaty Barcelona Sofia Tbilisi Code Share Partners Porto Rome Thessaloniki Istanbul New york Madrid Baku Beijing Lisbon Tunis Athens Rhodes Tokyo Algiers Larnaca Erbil Heraklion Beirut Damascus Casablanca Tripoli Baghdad Osaka Alexandria Amman Benghazi Cairo Kuwait New Delhi Sharm El-Sheikh Dammam Hurghada Gassim Bahrain Luxor Riyadh Dubai Guangzhou Aswan Doha Sharjah Medina Abu Dhabi Abu Simble Marsa Alam Muscat Jeddah chiang mai Abha Bombay Khartoum Asmara Sanaa Bangkok Kano Djibouti Addis Ababa Abuja phuket Accra Lagos Juba Abidjan Kuala Lumpur Singapore Entebbe positioned. been approximately have included points The Kigali Nairobi Bujumbura Dar es Salaam Luanda

Lusaka Harare Sao Paulo Mauritius

Johannesburg

Durban Cape Town

Code Share Partners EGYPTAIR’s Worldwide Destinations

International Flights operated by EGYPTAIR Code-share Flights Domestic ights operated by EGYPTAIR EGYPTAIR TRAINING CENTER according tothetablebelow: alsoin and EASA with with EgyptianCivil compliance Aviation Regulations in compliance are certificates approval simulators flight full Center Training EGYPTAR Full FlightSimulators ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ Training Center Approvals andCertificatesRenewal expectations. of services withtheaim a package of customer exceeding through experience training and unforgettable enjoyable EGYPTAIRtraining, TrainingoffersCenter awhole quality highest with customers our providing to addition In financial, cargo, practically allactivitiesneededwithinamodernairline. services, ground and development; training and administrative commercial also but training, technical and crew cabin crew, flight only not includes It training facility. modern a of requirements infrastructure and architectural with allthe Airport inanewly-builtcenterwhichcomplies locatedatCairo The trainingcenterisconveniently available. system tothemostrecentvisual B777 simulators and the visualsystemof Updating A320, A330/A340, Simulator Type ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ The NationalInstituteforQuality ICAO TRAINAIR PLUSprogram Associate member. Egyptian Civil Aviation Regulations. with the are inCompliance departments All training OHSAS 18001 ISO 14001 ISO 9001 Emergency Evacuation B 737/800 A340/330 A320/321 (CEET) Cabin B777 Aviation Safety European

Agency

EASA √ √ √ √ Civil Aviation Regulations

Egyptian √ √ √ √ √ ECAA

37 Annual report 2015/2016 2013/2014 and 2014/2015 compared to 2015/2016 the period hours over Operation Simulators Full Flight ࿡ ࿡ ࿡ Performance Charts EGYPTAIR Training Centeraddednewcustomerstoitscustomerlist. Achievements Regulations accordingtothetablebelow: international and local with compliance in are certificates EGYPTAR TrainingCenter's Technical Trainingapproval Technical Training ࿡ ࿡ ࿡ Holding acooperationagreementwithRwandair. Holding anagreementwithFalconfor Airports SecurityCompanytotrainitsstaff. customers are Air Leisure, Aviator andRoute Aviation. EGYPTAIR Training Centerhas added newcustomersto its customers list in most of its training activities. The new Technical Training

Thousand 0 1 2 3 4 5 6 7 Aviation Safety EASA 147 European

Agency A320/321 √ 2013/2014

Civil Aviation Regulations √ Egyptian ECAA Flight SimulatorHours A330/340 ࿡ ࿡ Aviation Training 2014/2015 ࿡ ࿡ approved newcourses:- is incompliancewithEASA PartORA,FCL. Aviation Training Department (ATO) approval certificate - A320 FlightCrewUpgrade Training - A330 ETOPS Training Course MultiCrewCooperation - A320 EntryLevel Training –JetFamiliarization+ B737/800 2015/2016 B777

38 Annual report 2015/2016 2013/2014 and 2014/2015 compared to 2015/2016 period over the of trainees Total number 2013/2014 and 2014/2015 compared to 2015/2016 the period hours over operation total simulators Full flight 2013/2014 and 2014/2015 compared to 2015/2016 the period courses over of conducted Total number

Thousand Thousand Thousand 0 2 4 6 8 4.5 4.6 4.7 4.8 4.9 5 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2013/2014 5.678 2013/2014 1.338 4.637 2013/2014 Number ofTrainees Number ofCourses Flight SimulatorTotal Hours 1.597 Total 2014/2015 5.895 2014/2015 4.7 2014/2015 1.705 2015/2016 2015/2016 6.162 2015/2016 4.899

39 Annual report 2015/2016 EGYPTAIR IT

40 Annual report 2015/2016 MENA2 region in SITAMENA2 region the and also joined Council EGYPTAIR from hasbeennominated AACO to represent Star DataNetwork (SDN). to connection for needed configuration the prepared and It participated effectively inbaggagehubprojectCommittee feature asamandatoryitemin STAR requirements. this apply to procedures executive the prepare to (ADC) outstanding It participatedin Automated DocumentCheckCommittee of implementation projects. the for Aviation requirements of Ministry the the needed and prepare procedures to facilitateall by formed CAC) COMPANY AIRPORT CAIRO AND (EGYPTAIR between committee IT SECTOR represented EGYPTAIR effectively inthe carriers theIT SecurityPolicy. & Disaster RecoveryForumandsharedwiththe STAR IT sectorattendedtheStar InformationSecurity Alliance entitle themtotravel). (allows Validation that documents that theyhavevalid check automatically Document Travel to check-in channels customers whouseself-service Automated 4. self-service channels). via tags bag print to customers (enables Self-tagging 3. bags forpassengerswhohavechecked-in). accepting for queue separate a (have Drop Bag Fast 2. airport). passes off-customers tocheck-inandreceiveboarding for ability the (provides flights for Check-in Off-Airport 1. these initiatives:- Airport Automation Ad-Hoc Groupworkshopwhichinclude COMMITTEE meetings. It also participatesinthe STAR forums; suchasSTARconferences andinternational IT ITEGYPTAIR Sectorrepresented effectively in continuing ensuring and maintenance andreducingcost. efficiency with performance the improve to Node) Access Service (Multi MSAN and IPtelephones cables, copper cables, fiber optical using IT Sector working to simplify all conditioning EGYPTAIR Voices network, air and technologies. equipment’s saving, power latest It has started to renovate the Data Centerwiththe o FrequentFlyer. o The Emailservices. o SIRAXSystem(TheRevenueaccountingSystem). flash storagesystemandreplication: is basedonthelatestenterpriseservers,virtualization, infrastructure, which to anew migrated systems hadbeen agreement. level three As anexample,thefollowing fast Mean-Time-To-Repairthat conformstoourService- customers’ expectationsandhasa order to meet and exceedEGYPTAIR business needsand availability,high guarantee the clockin worksaround efficient updated most and to makes updates software. Italways and hardware latest the Using Sector IT Information TechnologySectorProfile Cmlto o itgaig h sse wt te flight the with system standards. to theinternational system according operation the integrating of Completion - companies toallthespareparts items. and EGYPTAIRMaintenance & Engineering Airlines ayearlyinventorytothestoresof‘EGYPTAIR- Making Airlines companies. ‘EGYPTAIREGYPTAIRand & Engineering Maintenance - Making the periodic inventoryfor items the of expendable passengers through(DCS)system. - of The completion to provided service Auto check cost, accordingtotheagreementwithcompanies. time and papers, system forsaving retired and employees - of thefreeticketssystem forall Activation andcompletion the performanceevaluationRMSA. - The activationof the reporting systemsthatarerelatedto RAAV System, Airfare System&INFARE System. EGYPTAIRwith System, contracting Company: Airlines - to theRevenue The activationofthreesystemsrelated maps, inadditiontothefollowing:- flight of updates periodic the inserted and manual pilots It activatedtheIPADa newserverfor projectbyusing and aircraftcommunications. services frequencies for Company ARINC and programs date isobligatory. hardware, softwareandtechnologyinfrastructureup-to- system’s this keeping data, critical EGYPTAIR of copies disasters orfailures. As backup systempreservesupdated corporations to continuity incaseof ensure business for Enterprise Backup Systemsarecrucial Upgraded resolution forIATA 2DBarcode. to new according 2D Barcode with passes boarding print requirements, as allStar Designator STARcarriers mustbeableto Alliance to respect Fast including TrackCarrier Marketing and indicator with Pass Code) for (Bar 2D boarding new the for test final the prepares It member. to beaSITAof applications and rejection for approval responsible is which (MEMCOM) Committee Membership

41 Annual report 2015/2016

Board ofDirectors EGYPTAIR Airlines SyndicateRepresentative Mr. / Abdel KarimMahmoud Abdel Samie Mr. / Yasser Yahia MohammedElRamly Mr. /KhaledMohammedRedaEl-Sadat Eng. /SabryElSayed Abdelhady Diab Mr. / Ahmed MohammedSamirFarid Capt. /Hady Abd Almottaleb Rabie Dr. /IbrahimHassan Aly Ashmawy Mr. /MohammedMahdyEl-Sayed Chairman Advisor forCabinCrew Senior CabinCrewSchedule Mr. / Nidal Al-QasemAssar Mr./ Capt. /SherifazzetHelmy Minister of Tourismof Minister Advisor Senior Traffic Officer EGYPTAIR Airlines Chairman &CEO Chairman &CEO Vice- Chairman Aviation Expert Senior Pilot EG Bank Air Cairo

43 Annual report 2015/2016 its customers the privilege of prioritytreatment across28 its customersthe privilege is basedinNorth Africa & Middle East. Star Alliance offers that airline only the is it since unique is network Alliance countries nowadays. EGYPTAIR’s membership to the Star customers to have accessto 1,300 destinationsin190 largest Airline in theWorld,Alliance EGYPTAIR's enabling • In July 2008, EGYPTAIR joined Star Alliance network, the products have beenperformedforquality serviceimprovement. IT Major Program). (Pax-IS projects, these all between integration the finally and Sirax; system financial the of introduction 9), (Crane Program Flyer Frequent the E-Ticketing,use ofthePROSO&D System,upgrading Reservation Engine), Booking Amadeus (Internet IBE the of the activation System, of (implementation place: taken has breakthrough technology significant a 2006, •In of SABRE Airline Solutionsduringthere-structuringplan. Airport hasturnedtoaHUB Airport -withtheguidance inthe Middle East and Africa. Moreover, Cairo International airline certified IOSA first the became and safety EGYPTAIR• In2004, of standards the highest achieved imperative re-structuringplan. SABRE Airline Solutions,hadsuccessfullycompletedits • In EGYPTAIRAugust 2003, of Airlines, withtheguidance nine Subsidiaries. with Company a Holding 216, hasbecome number decree Presidential Decree number 137 andthe civil aviationministerial the to subject EGYPTAIR, 2002, June In • resulted inthenewidentity«EGYPTAIR». Syrian MisrAirand • In1971, split, thematterwhich Airlines to flyBoeing707s,andoperatelongerroutes. East Middle the in airline first the UAAbecame 1969, In • «United ArabAirlines-UAA». identity new • In1960,MisrAirmergedwithSyrian forming a Airlines American technologytothefleet. “MisrAir” and10Beechcraftwerepurchased,adding • In1946, “Misr The name to was changed Airlines” “Misr Airlines”. theEgyptian War, World and changedits government tookovertheairline name to the Second during and fleet • In1935, A total of 12 DeHavilland wereaddedto the world tojointheIATA. East and Middle in the carrier the seventh Africa, and the in carrier pioneer the to become then since evolved • InMay1932,EGYPTAIRand has wasestablished; EGYPTAIR HISTORY:- Plus LoyaltyPrograms. EGYPTAIR through benefits Silver and Star Gold Alliance to all entitled are also and countries allovertheglobe 190 July since in more destinations to reach able currently customers are EGYPTAIR’s network, huge Alliance that of Star part a as of and 2008, member active an Being the world. across destinations major to reach network these years,EGYPTAIRits extended hassuccessfully Company withmorethan83years of service; throughout EGYPTAIR AIRLINES isthecoreofEGYPTAIR Holding started its Transformation Plan. of consultant,SABRE guidance Solutions, has Airline 2014,EGYPTAIR• InDecember Airlines, withthe Aircraft. 330-300 our Airbus on seats, flat-bed to WI-FI internet access thathasbeenofferedin addition full with personal screensinallclasses,mobilesusage, onboard customers Class • In August 2010,EGYPTAIRits Business hasprovided common terminalatHUBairports. to benefits Star as theypassthrougha passengers airlines Alliance immense brings which terminal, single a in all Star One Roof»bylocating Under member-airlines Alliance «Moving of principle Alliance’s Star sustain and ownedandoperatedbyEGYPTAIR,ALLIANCE lounges where customers can enjoy the exquisite service in STAR with starpartnerstoCAIRO operations Terminal 3Building, • In April 2009,EGYPTAIR has successfully shiftedits and Prioritybaggagehandling. to Prioritycheck-in,boarding, treatment inregard priority receive travel. Goldstatuscustomerswill comfortable more and connections, flight better airlines,

44 Annual report 2015/2016 •Develop high-performanceculture •Deliver high-quality productsandservices •Growthandregionalleadership: keypillars: EGYPTAIR isbuilton four 's futurestrategy Alliance anddevelopingcooperativeregionalventures. Star global reachthrough markets, extending existing to frequencies more adding destinations, new adding of a combination depth through and breadth network ­Increase ­Keys to unlocking EGYPTAIR's potential include loyalty andobtainrepeatbusiness. customer maintain hence and satisfied; customers valued consistent highservicedeliveryareessentialto keep our and control quality on Focusing ones. existing retain and attract new help that satisfytheneedsofourcustomerswill services and products high-quality delivering Offeringand •Fundthefuture fleet replacementandgrowthwithnew, efficientaircraft. customers. Successful delivery will generate profits to fund services quality and productsthathelpattract new andretainexisting consistent deliver and plan growth the in check. Awill lead organization performance-driven revenues. Attaining economiesof scale willkeepcosts and traffic more in bring will Hub Cairo the of ­Expansion generating profitsrequiredtofundfuturegrowth. the fourth pillar willspontaneouslyachievesuccessby culture, a performance and services,developing products high-quality delivering leadership, and growth of ­By strategicpillars leveraging the three above-mentioned performance managementandeffective communication. for results. delivering This is supported by training, them accountable their teamsandhold who empower an effectivedeveloping by leaders guided organization

45 Annual report 2015/2016 and profitablemarkets. Cairo between flights increase to order in over flights) new 41% 94 of by (total 2014/2015 flights Gulf East of Middle frequency & the Increasing • China and African countries. between and traffic high the Africa accommodate from/to flights from/to and toboost China flights between order in connectivity flights, instead of weekly flight 5 adaily CAN be of to frequency flights the Increasing • EGYPTAIR NewFrequencies/Week 69 in cities (Total97 agreements Share Code countries). through cities 35 and countries, 47 in cities 62 serving is Network MS • and 39domesticflights. local Airports), from flights 61 international to North America, flights East, 11 Middle the to flights 323 East, Far to flights • EGYPTAIR operates 647 weekly international flights from Egyptian airports (90 flights to Africa, 151 flights to Europe, 24 Schedule Achievements: over (3% America 2014/2015), over (2% Africa 2014/2015), over (3% East 2014/2015) andDomestic(6%over2014/2015). Far the in increased consequently LF • in thesameregions(theMiddleEast:2%over2014/2015and America: 8%over2014/2015). • EGYPTAIR increased ASK for the Middle East (9% over 2014/2015) and America (3% over 2014/2015) and RPK increased NETWORK DEVELOPMENTHIGHLIGHTS 0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 10.000 Europe 65% 67% 2015/2016 ASK (Million) 2014/2015 RPK(Million) Middle East 68% 72% Schedule Operating Results 61% Far East 64% Point DMM AMM Total MED DOH RUH AUH CAN DXB AHB ELQ SHJ KWI JED TLV 2015/2016 RPK(Million) 2014/2015 L.F. 57% 59% Africa 2014/2015 14 21 14 21 14 42 21 14 11 5 4 5 4 4 70% 67% America 2015/2016 2014/2015 ASK (Million) 21 27 28 26 35 61 23 16 18 7 7 7 7 7 2015/2016 L.F. 74% 68% Domestic Frequencies 96 New 14 21 19 7 6 5 2 2 3 2 3 2 7 3 0% 10% 20% 30% 40% 50% 60% 70% 80%

46 Annual report 2015/2016 Number of Flights

America, consequentlynumberofpassengershaveincreasedabout4%intheMiddleEastand8% • Available seatshaveincreasedin2015/2016around10%over 2014/2015intheMiddleEastandaround3% • Numberofflights haveincreasedin2015/2016, mostlyintheMiddleEast region,by1,735flightsover 2014/2015. Number ofFlights Available Seats&UpliftedPassengers Million NO.of PAX 2015/2016 NO.of PAX 2014/2015 Available seat2015/2016 Available seat2014/2015 0 1 2 3 4 5 6 7 FAR EAST 842 AFRICA 4,728 1.409.678 1.536.113 2.163.129 2.311.184 EUROPE AMERICA 480 FAR EAST AFRICA 5,034 865 DOMESTIC 2,282 3.997.772 3.836.180 5.885.922 5.360.278 EAST MIDDLE DOMESTIC AMERICA 3,352 468 2014/2015 MIDDLE EAST 13,908 302.190 307.636 572.395 622.019 FAR EAST EUROPE 7,274 834.280 895.190 1.423.501 1.579.569 AFRICA MIDDLE EAST EUROPE 15,643 7,011 2015/2016 225.991 209.163 321.172 312.170 AMERICA 481.796 627.710 698.281 959.342 DOMESTIC America.

47 Annual report 2015/2016 ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ PRODUCTS &SERVICES DEVELOPMENTS Average DailyUtilization ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ AB320 aircrafthaveexceededindustryaverage. • EGYPTAIR FleetUtilization Average wasalmost inlinewithIndustry Average in2015/2016,whileB737/800and Noise Cancellation headphones are available in are available headphones Cancellation Noise personal screens forEconomyClassseats. in the system entertainment on board aircraft with channels visual 120 be to increased channels Visual (onboard JeddahandMedina flights). Mecca and flight Hajj first the about films documentary New Entertainmentcontents were improvedby adding in 2015over2014). magazines 75,480 by (increased year per magazines offeredmagazines to be215,600 tothepassengers have beenaddedonboardto increase the number of language in English magazines New international Alliance GoldMembers. EGYPTAIRStar members, and & Golden PlusPlatinum for EGYPTAIR's First & Business Classcustomers, Passport ControlFast Track facility at Cairo Airport counters). check-in (no more long queues as we have 88 check-in using CUSSKiosk Increasing No.of passengers (Platinum &Golden),andStar Alliance GoldMembers. passengers flyer frequent business, first, for Lounges Equipping theentireLong-HaulFleet 12:00 14:24 pitch to32inch. • options. • • 0:00 2:24 4:48 7:12 9:36 Enhanced cabin comfort by increasing the seat cabincomfortbyincreasing Enhanced Personalized monitorswithvariousentertainment Introducing FullFlatBedseats. B737/500 2014/2015 B737/800 Narrow Body A320 2015/2016 ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ A321 ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ which fulfillshigh ratesofcustomersatisfaction. by IATA, tofacilitatetravelprocedures forpassengers, Implementation oftheFast Travel Program, adopted beyond trafficproceduresfor passengers. between EGYPTAIR and otherairlines,to facilitate (IATCI) in Star Alliance, by increasing no. of agreements Reaching highrates in Inter-Airline Through Check-In flights bysendingtheme-mails orSMSs. passengers about time changesthat may occurontheir “Keep MeInformed”projecthasbeeninitiated,toinform Printing Bag Tag (HPBT)system. to Platinum inIATA Matchmaker by applying Home EGYPTAIR ranking hasbeenupgradedfrom Gold passengers’ procedures. to facilitate system hasbeenapplied Auto Check-in Juba station). for (except stations domestic and international EGYPTAIR'sactivated in Altea Systemhasbeen Premium passengersincaseofLostBaggage. have beenactivatedtoserve Premium ClaimCounters by 5.1%in2015/2016over2014/2015. increased has files baggage Lost of closure the hence by 6%and has decreased the numberofLostBaggage Tag-less Baggage has been identified by 73%, besides accommodation proceduresforprioritypassengers. with hotel Needs, andothercountersforarranging Special forpassengers dedicated are counters Specific Business ClasscabinonboardB777-300and A330-300. A330/200 INDUSTRY AVERAGE Wide Body A 330/300 B 777/300 (OP.LEASE)

48 Annual report 2015/2016 ࿡ ࿡ ࿡ ࿡ ࿡ revenue fromeachdeparting flight. the fare is tomaximize this program behind The objective Revenue ManagementSystem (ProsO&D+2) react modifications, fares, tostaycompetitive. instantly bysettingupcompetitive continuous their confront to order in basis, daily a on competitors’fares monitor to system a is It Fare ManagementTool 3. Improvedecisionmaking&control. 2. Optimizerouteprofitability. 1. Improvefinancialvisibility. The objectivebehindthisprogramisto: Project) Complete & Comprehensive Solution (Financial Departments SIRAX (SAP) and revenues, and identify thestrengthsandweaknessesofroutenetwork. costs flows, passenger for forecasts plan fornetworkneeds,addnewconnections,create flight optimal the create to is program this of objective The Net-line/Plan Ongoing Projects NEW &ONGOINGPROJECTS ࿡ ࿡ ࿡ ࿡ ࿡ have beenincreasedby6%over2014/2015. by served EGYPTAIR getting inCAIanddomesticstations2015/2016 flights airlines’ foreign of Number in CAIanddomesticstations. Aviation to offer them passengers’ and agency services has beenexecutedbetweenEGYPTAIR & Cleopatra domestic stations. Additionally, aLetterof Agreement to offerFlyDamas CAI and in themstationservices EGYPTAIRbetween contract issigned New and instant take corrective actions. to President Vice Stations to presented andservices performance to passengers.Resultsofsurveysare produced officers’ traffic evaluate A dailyCustomerSatisfactionSurveyexecutedto their bagsattheairport. them toPremiumCheck-Incountersdropoffguiding ofselecting the options passes and their boarding their desiredseats,printing them offer to flights their to prior hours 24 around customers Flyer Frequent Gold make contactwithBusinessClassand representatives of PreCheck-Inservice;CustomerService Innovation IATA. in of August 2016-inordertoobtaintheaccreditation applied be to IATA(IGOM) Manual Operations Ground EGYPTAIR ismatching theworkmanualswith

49 Annual report 2015/2016 ࿡ ࿡ ࿡ ࿡ E-COMMERCE DEVELOPMENTS human completing for resource (HR)processes. requires (HRM) management an single, centralizedviewof the data that a humanresource is (HRIS) system a servicethatprovides system ormanaged information information resource human A Human Resource InformationSystem(HRIS) our relationshipswithcustomers. our serviceandstrengthen toimprove customers, aiming customers its with customersdataandcommunicating by following-up with interaction EGYPTAIR’s managing isasystemfor Management Customer Relationship Customer Relationship Management(CRM) Upcoming Projects ࿡ ࿡ ࿡ ࿡ ­EGYPTAIR websiteisnowavailablein7languagesfor33countriesplusworldwidepagetherestcountries*. ­Moreover, ourwebsiteisalsoconsideredoneoftheofficialchannelsforpublishingpressreleases. Requests, CheckingFlightStatus,Display Timetable andReservation Details. ­Ais offered widerangeofservicesaregrantedandmoreinformation suchas,FlexPricer,Meals SeatSelection,Special needs. their fulfill and expectations their meet to booking online to addition in services online more with customers valued our offers www.egyptair.comnow website our experience, travel quality high a deliver to aims constantly EGYPTAIR ­As Deutch Chinese English egyptair.com Languages Spainsh 7 Italian Arabic French Hong Kong Germany Lebanon Hungary Belgium Canada Bahrain Greece Cyprus Austria France Kuwait Japan China Egypt India Italy 33 Countries United Arab Emirates United Arab Page (forthe rest United Kingdom United States Saudi Arabia Scandinavia Netherlands South Africa * Worldwide Switzerland Countries) Thailand Morocco Portugal Tunisia Russia Turkey Spain Qatar

50 Annual report 2015/2016 • FlightBookingService(includingflexprice&payment). Instagram]. Twitter,and YouTube,[Facebook, Google+, feed Social • • Gallery. • Newsandtravelalerts. • Onboardservicesinformation. • Specialservicesinformation. • Destinationguide • EGYPTAIR CTO & ATO contactinformation. • Specialoffers. • First&Businessclassloungesinformation. • Baggageinformation. • EGYPTAIR Plusaccountloginandinformation. • Flightstatusand Timetable information. • Managebooking. • Mobilecheck-in(using Altéa DCS). Phones, andBlackBerryPhones. Phones, Apple Windows for Android, • Applications Full updateofEGYPTAIR MobilePortalServices used (nowavailableat App Store). type the device regardless application, saved onpassbook new facilitiesprovided,that allows boardingpassesto be IPad, IPod, BlackBerry Phones,&WindowsPhoneswith • EGYPTAIR Mobile Portal Application for Apple IPhone, Airlines. Alliance Star 28 the all on Miles Redeem and Acquire • • OnlineHorusFlashmagazine. • OnlineSeat Assignment &ExtraBaggage Allowance • Newinteractivespecialoffers page. • 3Dinteractiveroutemap • Roundtheworldtickets. • OnlineHotelreservation&CarRental. • Web check-intoenrichthevalueofonlineexperience. which Changer) Ticket enables tochangethetravelitinerary. (Automatic service ATC The • Online Services(www.egyptair.com) reservation for best available prices and promotional fares. reservation for prices andpromotional best available ­ ࿡ ࿡ ࿡ ࿡ ࿡ New Services: ࿡ ࿡ ࿡ ࿡ ࿡ and willbeadded later: study withAmadeus under features arecurrently New Methods: EGYPTAIR is currentlyactivatingnewPayment New PaymentMethodshavebeenactivated: with specialneeds. users internet for useable be that should websites airlines’ impose which requirements Law Transportation of EGYPTAIRFull update the American to apply website & Seat Assignment) Activation of Pre-paid Ancillary services (Extra ­- Paylateronmobileapplications. the mobileportal. number of forms of payments inthe website and ­- Amadeus Payment Platform to increase the - ­ - ­ - ­ - ­- OgoneCollectinEuropeancountriespages. -­ Visa &MasterCardinallcountriespages. ­American ExpressinEuropeancountriespages. Bee (sameasFawry). Paylater inUSA page. Fawry inEgyptpage. -New services to help thecustomerto make Baggage ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ - ­ - REVAMP ofallmobileapplications. through EGYPTAIR website. Plus Flyer Frequent members to book theirtickets against milesdirectly help to Shopper” Award “Online ­- case ofanychangeinhisflightatonce. ­- “Keep Me Informed” serviceto inform the passenger in - ­ expected tobeactivatedbytheendof2016: ࿡ change theirrouteonlineincaseofinvoluntaryrerouting. ­-ATCcustomers to to help be activated will Involuntary applications. ­ highly skilledandwell-trainedstaff. a contains systems, and the state-of-arttechnological with speedy,a in way. professional and qualified equipped is It information flight and ticketing reservation, to regard with inquiries customers’ our of all to respond to 11PM) – AM (8 service daily of hours 15 provides now Center Call Our Contact Center SALES DEVELOPMENTS Call CenterAchievements: “Rail &Fly”servicetobeactivatedonthewebsite. Website HomePageupdate. ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ Activation ofCrises HotLine Card a as Diners) payment method through phones beside Visa & Master (ex. Cards Credit of types new Adding tickets issued on 3% commission bank decrease to (Al-Ahly) Negotiations are being heldwithNationalBankof Egypt payments hours” before flight,insteadofcurrently“48hours” passengers“24 allow to (Al-Ahly) Bank ofEgypt initiated withNational Co-operation who wishtobookandpayincash. Fawry services,toserveallpassengers service beside the successfulserviceofBEEpayment Launching Re-operate RiyadhandMedinaCallCenters text messages. them and new promotionsbysending Queue situation with their SMS Gatewaytonotifypassengers Operating – Orange Etisalat – – Telecom Egypt) (Vodafone companies communication System softwareactivatedwiththe4 New Billing Call in Centers activated system Recording Call Voice New instead ofCISCOVersion 7.5 Version10.5 CISCO to upgraded program Call CISCO February 2015untiltheendof2018. Maintenance of Call Center, for 3 yearsstartingfrom and withIBMforDevelopment Contract renewal 2015/2016 over2014/2015 Call CenterRevenuehasincreasedby29%in New updates that are currently in progress and New updatesthatarecurrentlyinprogress -Ancillary services to be booked through mobile through services tobebooked -Ancillary

51 Annual report 2015/2016 ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ Sales Achievements: ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ­Local Travel Agents Salesincreasedby11.1%. International Travel Agents Salesincreasedby0.9%. 2014/2015 asfollows: on Sales (BSP) Agents EGYPTAIRover by 2.6%in2015/2016 increased Travel External & Internal 81 newcorporatedealsaddedin2015/2016. Participating inBSP Vietnam &SouthKorea. Activating BSP HongKong. Offline Points: GSANew for assigning the procedures Finalizing in Reassigning NewGSA in: training. aposition-related received 768 salesemployees 17% respectively. Call 1%, while by Center andWebsite increasedRevenuesby29%and decreased Sales Offices Internal 2015, includedall Travel Agents. Awarenessin held Seminar March during Alexandria Subscription of 79 Third Party Agreements in 2015/2016 . Brni Rad – aba Lbra Sngl – Sierra Leon–GabonMozambiqueMaliCongo) –Senegal Liberia – Zambia – Rwanda – (Burundi 2016. during Apr during Jan 2016, and Kurdistan (Erbil & Sulaymaniyah) Pakistan Tanzania2016, 2015, Jan Dec during during Togo2015, Aug during Norway) – Finland – (Sweden Prevented Loss Screened Transactions 1,050,000 1,100,000 1,100,000 1,150,000 1,200,000 1,250,000 1,300,000 1,350,000 1,290,000 25,000,000 2014-2015 25,000,000 1,290,000 Fraud Transactions ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ 0.5%, whileitisZERO%for4timesduring6years. ranges between0.2 Fraud percentagein2015/2016 - Absence ofFraudLossesonEGYPTAIR Website. EGYPTAIR isnotinMASTER&VISA black-list. purchases withmorethanEGP 25million. many attemptsofun-legal by blocking e-payment on INGENICO data base of black-list Enrichment Airlines andKenyaairways. of ZED&MIBASubscription with United agreements 2014/2015. Totalover also by7%in2015/2016 increased Revenue & 5%) by increased phase inbound - 2% by increased phase (outbound increased Passengers Uplifted Hajj 2014/2015. over alsoby23%in2015/2016 Revenue increased Omra Uplifted Passengersincreasedby33%& Total Assigning NewPSSA: their reservationsystem. withinterlinecarrierschanging cooperation Continued Nile Air. with Interline Agreement ICCS. BSPRe-activating in GeorgiaafterMSparticipation office. - ­ of DMMoffice. supervision under in Al-Ahsa, Travel Agent ­- Almulhim Fursan Travelof MED supervision under in Medina 1,150,000 25,500,000 2015-2016 25,500,000 1,150,000 24,700,000 24,800,000 24,900,000 25,000,000 25,100,000 25,200,000 25,300,000 25,400,000 25,500,000 25,600,000

52 Annual report 2015/2016 ࿡ ࿡ ࿡ ࿡ ࿡ Pricing Achievements PRICING &REVENUEMANAGEMENTDEVELOPMENTS ࿡ ࿡ ࿡ ࿡ ࿡ Applying anewbaggagepolicy“LightEconomy” (1 markets. different in fares airlines’ other with aligned Freedom), Finalising of all published fares (3rd& 4th Freedom – 6th available. to currentsalesfares,ifseats the airportaccording at classes tohigher fees Upgrade of Re-modification network. EGYPTAIR within operated aren’t which 2015/2016 in customers’ EGYPTAIR’s expectations, as we are meet serving 285 offline destinations to fares competitive the with number ofdestinations possible the largest reach inserting and and performingnewagreementsinorderto worldwide, carriers, foreign corresponding fares into all reservation systems with (GDS’s) (SPA) Prorate Special current of all Re-studying Agreements effective 26Oct.2016. different markets, the newsystemwillbedelivered EGYPTAIRfares, toenhance in competitiveposition basis, andreactinstantlybysettingupcompetitive daily a on fares competitors’ monitoring of ability the New FareManagement Tool bySITA, whichimproves fare (T class),effective 12Oct.2016. ic ised f pee) n promotional on pieces) 2 of instead piece by theendof2016. network forthewhole network anditwillbeaccomplished in the on27destinations PROS O&D2systemisapplied ࿡ be competitivewitheachmarketcompetitors. action to ­This productenablesRMteamtotakenecessary beyond onesaswellondailybasis. for bothtrunkroutesand to othercompetitors compared This productallowsEGYPTAIR to monitor MS fares contract duringmentionedperiod. ­EGYPTAIRwith IN-FARE hassigned a Knowledge ࿡ utilization togainmorerevenue. to recognizeallsystemfeaturesandwhatisthebest ­-Acourse hasbeenheld basictraining August 2015 for eachavailabilityrequest. from controlling the availability POS and routeperspective by (PROSO&Dll) system RM the enhances product ­-This forRAAV productinMar2016. ­- EGYPTAIR hadsignedwith Amadeus acontract ࿡ Revenue Management Achievements ࿡ ࿡ ࿡ O&D 2 IN-FARE RAAV (Revenue Availability and Active Valuation)

53 Annual report 2015/2016 Marketing DataAnalysis from allovertheworld. who performandattendtheOperaconcerts free tickets to theCairoOperaHousetransportculturalambassadors & discounted EGYPTAIRoffers printouts, Opera’s the all on EGYPTAIR’slogo Placing following:- the offer sectors both of mutualsupport betweentwo entities insocietyfor the mostculturalpurposes. distinguished According to this protocol, Since 1988,thereis an annualcooperationprotocolbetweenEGYPTAIR & Cairo OperaHousestressingonthe necessity ࿡ access, extrabaggageallowance,etc... lounge Airport priority check-in, Airport priority handling, baggage priority as such members its for benefits and services EGYPTAIR Plus,withits4tiers:Blue,Silver,loyalty brandoffering Gold andPlatinum,isadistinguished value,premium EGYPTAIR Plus All otherNBECreditCards EGYPTAIR-NBE MasterCard Tickets canbeinstalledusing: all paymentscompletelyintoEGYPTAIR account,whilst NBEhandlestheinstallmentchargeswithpassengers. domestic ticketsissuedinEgyptatSalesoffices. Thisoffer isvalidforallNBEcreditcardholders,wheredeposits EGYPTAIR andNBEhavesignedanagreementtoapplyinstallmentprogramonEGYPTAIR internationaland ࿡ their correspondingaccounts. EGYPTAIR andOrangehaveagreedtotransferPointsfromSpecialmembershipaccountsintoEGYPTAIR PlusMilesin ࿡ membership accountswitheveryspendingtransactionaccordingtothecardlevel. levels: Platinum, Titanium andStandard. These cardsenablememberstoaccumulatemilesintheirEGYPTAIR Plus EGYPTAIR PlusandCIBhaveenteredacooperationtoissuetheco-brandedMileseverywherecreditcardwiththree ࿡ Marketing Projects: Marketing Programs Achievements Marketing CommunicationsAchievements contributed intheDDSandanother10airlinesontheirwaytosignwithIATA. and huge the accurate amountofdataitprovides. themselves. The mainsourceofthesedataaretheairlines of There are51airlines because aviation of field the in systems powerful and famous most the of one as known is DDS 2019, IATAthe with renewed been has contract (DDS) Solutions Data Direct JUL1st from years 3 another for May 30th till 2016 MARKETING DEVELOPMENTS ࿡ ࿡ ࿡ ࿡ EGYPTAIR &CairoOpera House’s protocol. National BankofEgypt(NBE) Orange Commercial InternationalBank(CIB) at aninterestrateof8% at aninterestrateof5% at aninterestrateof7.5% at aninterestrateof4.5% on12months on6months on12months on 6months

54 Annual report 2015/2016 • EGYPTAIR passedandrenewed AOC certificate,andfulfilled allCivil Aviationrequirements. • EGYPTAIR passedIOSA,ISAGO,andStar Alliance inspectionswithoutanyfindingsorcorrective actions. • EGYPTAIR isthe1st African &MiddleEastern IOSA registered airline,andthe16thworldwide. through continuouslyupgrading oursystemsandhumancapital. and ISAGO– IATAStandardization Safety Audit forGroundOperations. Werecognition plantomaintainthisinternational such bodies international as: IOSA– IATA by Operational Safety certificates Audit, EASA–European Aviation Safety Agency, maintaining ISO– International Organizationfor and obtaining involves This standards. internationally-recognized • Toof EGYPTAIRthe position secure against its operations strives tobenchmark markets, thecompany intheworld and mustremainregisteredtomaintainIATA membership. system evaluation accepted designed to assess managementandcontrolsystems the of operational an airline. and All IATA recognized members areIOSAinternationally registered an is program (IOSA) Audit Safety IATAOperational The • INTERNATIONAL CERTIFICATES A that partner,program is provided to our non-airline 4. CorporateProgram: the through website. Tickets Cash) & (Miles or Ticket) (Reward This online solutionwillenablethe member to issue 3. Award Shopper&OnlineRedemption: tickets partlywithmilesandtheothercashorcredit. Offers thememberabilitytopurchase revenue 2. Cash&Miles: offices to sales issue RewardticketsorUpgrade Tickets. the enable will that solution offline The 1. AIA (AlteaInteractive Award) : level, newrulesandprivileges. EGYPTAIRa newtier Plusisintheprocessofintroducing New Features: com withnewdesignandfeatures. EGYPTAIRits websitewww.egyptairplus. Plusupdated Revamp of website redeemed toissuerewardtickets,upgradesandexcessbaggage. Members accumulatemilesfortheirtravelonboardEGYPTAIR aswelltheStar Alliance carriers.Earnedmilescanbe development andreplacetheplasticcard. up with to keep QR barcodes using application mobile A projecttodisplaythemembershipcardon 8. DigitalCard: benefits necessary with according tohistierlevel. member the provides station Reverse A / in thePNRtoenable producttorefreshthetierlevel update PNR (Automated automated PNRupdate): RAPU / APU 7. the memberstoprovidenecessarybenefits. in realtimeto provide thetouchpointswithcorrectdataof Aof theloyaltydatabase the exchange producttoenable 6. PAS (Profile AccessSynchronization): purchase itemsfromournon-airlinepartners. Ato to usetheirmiles the members allow systemthatwill 5. PartnerPortal: loyalty program. allowing their company and employees to benefit from the

55 Annual report 2015/2016 Certificate Express Your Travel

During fiscal year 2015/2016, EGYPTAIR Express achieved surplus EGP 77.812 million. Board of Directors

Capt. Helmy Awad Ibrahim Rizk Chairman & CEO EGYPTAIR EXPRESS Capt. HISHAM ELSAED ELDEEB Senior Pilot EGYPTAIR AIRLINES Mr. Shrief El Maghloub VP Commercial Affairs EGYPTAIR AIRLINES Mr. Ihab Ghazy VP PLANNING EGYPTAIR HOLDING Mr. Salem Salem Hassan Consultant of Chairman EGYPTAIR HOLDING Capt. Mahmoud Ahmed Shalaby AIR OPERATION GM EGYPTAIR EXPRESS Mrs.Seham Kamal Eldein Board Member EGYPTAIR EXPRESS Mr. Ahmed Ali El Ashwat Planning General Manager EGYPTAIR EXPRESS Mrs. Nermeen Fouad Air Hostess EGYPTAIR EXPRESS MR MOHAMED MAHMOUD AHMED Representatives of EGYPTAIR labor union committee EGYPTAIR EXPRESS Annual report 2015/2016 58 routes thatcover15citiesand carried1,224,006passengers. EGYPTAIR Express network inFY 2015/2016 includes20 domesticandinternational Routes &CarriedPassengers Abu Simbel,Marsa Alam, MarsaMatrouhand Alexandria. to Hurghada, as ahubinaddition airport Aswan, Luxor, with EGYPTAIRNetwork fromCairo International Mainline it of thelist; it isthebiggesttourismcityinSinai,connecting destinations InEgypt. Sharm El-Sheikhcomesonthetop EGYPTAIR Express isalwaysthe main gatefor 13 domestic market demand. to respond to company the allowing classes configurable EGYPTAIRCo. Holding All aircrafthave76seatswith Express Fleet consists of 12 EGYPTAIREMBRAER ERJ's 170 LR leased from Airport). Arab El (Borg Alexandria International Airport toasmallerbasein TB3 inaddition The company mainbaseandmajoroperationsis in Cairo product andexpandinthe regional short-haulmarkets. EGYPTAIRcompany waslaunchedtoenhance domestic EGYPTAIR inMay2006. Co. established Holding The EGYPTAIRarm of EXPRESS isthedomestic®ional Sharm El-SheikhInternational Airport. from Kuwait and Riyadh Jeddah, and base, second the in international Alexandria, El Airport Arab Borg from and Athens EGYPTAIR NetworkcoversBahrainand Express International Athens from Cairo international Airport, its main base,Beirut

No.Pax(Total) Passengers *1000 No.of Routes 1,000 1,100 1,150 1,200 1,250 1,300 1,350 1,287 10/11 25 25 1,287 1,126 11/12 20 20 1,126 1,298 12/13 22 22 1,298 13/14 1,114 24 24 1,114 1,229 14/15 20 20 1,229 1,224 15/16 1,224 20 20 10 15 20 25 30 0 5

Routes

59 Annual report 2015/2016 and 0.2inaircraftDailyutilization. between strategy network the smart by EGYPTAIR inExpresstotalnumberof operated hours which hasresulteda5%increase AIRLINE companies driven flights regional more operate to of innumber the decrease happened Although, ASK, EGYPTAIRits excess utilization EXPRESShasdirected (Average) Utilization FLIGHTS RPK ASK LF TOTAL million 1,000 Daily Date B/H A/C 100 200 300 400 500 600 700 800 900 0 867,550,888 651,731,978 10/11 75% 28,437 22,099 10/11 7.4 75% 12 763,583,826 551,647,203 11/12 72% Operational Data Y-O-Y Evaolution 29,143 19,967 11/12 72% 7.6 12 LoadFactor Y-O-YEvaolution Network OperatingResults 809,221,539 638,239,019 12/13 79% 33,250 21,501 12/13 8.3 11 79% 720,712,851 557,740,834 13/14 77% 31,722 24,668 13/14 8.1 12 77% 710,456,769 572,380,635 14/15 81% EGYPTAIR EXPRESSand 28,095 23,330 14/15 7.7 12 81% 702,628,392 557,121,227 15/16 79% 29,619 24,096 15/16 79% 7.9 12 68% 70% 72% 74% 76% 78% 80% 82%

60 Annual report 2015/2016 EGYPTAIR CARGO

EGYPTAIR Cargo company achieved a surplus of 127 million EGP after taxation. Board of Directors

Captain Bassem Mohammed Fouad Gohar Chairman & CEO EGYPTAIR CARGO Mr. Mohammed Abd El Maqsoud El Salhawy Chairman of Customs Authority Mr. Ahmed Maher Genina Chairman of Cairo Airport Company Captain Sherif Saad El-din Galal Civil Aviation Expert Captain Assad Darwish Civil Aviation Expert Mr. Osama Abd Ellatif Ahmed VP Economic Sector EGYPTAIR CARGO Mr. Mohamed Morad Koshek GM Import Mr. Ahmed Abd El-Hameed Hassan Member at Board of Directors EGYPTAIR CARGO Eng . Tark Mohamed Osman GM Engineering Mr. Hassan Mohammed Shehata Head of Syndicate Committee Annual report 2015/2016 62 ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ EGYPTAIR CARGOTerminals covermostregionsalloverEgyptfromNorthtoSouth; destinations new potential and launch to keepbalance major concern the is fleet of development the thus 2017, of end the by The out be phased SU-GAC will under registered A300-B4 development plan. to according defined was A300-600F the of out phasing type reachthe A320 in2019/2020toenable African market; A330-200 P2F by 2 2019 besides short- range aircraft of another adding by fleet its develop to is plan Cargo Egypt destinations - andgivetheopportunitytoreachnewpotential - Replacetheoldfleetbyamodernone, - Reducethehighoperationalcostof A300-B4, - Catermarketneeds, reasons forthatisto: aircraft oftype good of 2018.The P2F bymid A330-200 an evolution; agreement was concluded withEFW to convert two fleet for plans set has Cargo EGYPTAIR 600 F”, body aircraft“one range wide- A300-B4F andtwo A300- medium- three of composed is fleet CARGO EGYPTAIR to reachtheoverseasmarkets(longhaulmarket) EGYPTAIRbellies onthepassenger CARGO will depend EGYPTAIR. support the objective of total revenue maximizationfor other and each complement they should network, where the passenger and the freighter between coordination from acloser gain process will The networkmanagement handling generalandspecialCargo. and on theforefrontoftransporting CARGO hasbeen EGYPTAIREGYPTAIR Co.SinceitsFoundation Holding EGYPTAIR CARGO was foundin 2002 as a subsidiary of ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ the Perishable Center at Cairo Int’l Airport in conjunction with HEIA (Horticulture Export Improvement Association) Improvement Export (Horticulture HEIA Community. with conjunction in Airport Int’l Cairo at Center Perishable the EGYPTAIRProjects like of otherrelated and operating the managing to include their business CARGOextended extension ofEGYPTAIR CARGO facilitiesatCairoairport the Strategy concerning areas statedinNational of thefutureexpansion complex, thisprojectwasset as areplacement current to meters square 15,000 of area an adding ramp the towards facility cargo current the extending of project the out carry to planned also is It ‘hub’ airport. a as airport international Cairo operating and developing in role significant EGYPTAIR CARGO to is expected double its storage capacitywithinthenexttwoyearsasEGYPTAIR CARGO has a international airlinesfromLuxorand15 from Alexandria EGYPTAIR10 from Cairo, airlines international 30 serving employees than 1338 boasts ateam ofmore CARGOnow Airports Companywithacapacityof20,000tons/yeartobetter servethesouthernregionofEgypt. InFebruary2006,anothercargoterminalatLuxorInternational sharing 50%withEgyptian Airport wasestablished Ramadan City-45minutesfromCairocargoterminal,thefacility isnotoperatedyet. A thirdcargofacilitywith capacityof30,000tons/yearhasbeenconstructedattheindustrialzone10th transportation inadditiontothedomesticflights. tons / year to better servethenorthernregionof Egypt. Both terminalsare connecting theiroperationsthroughasurface at terminal cargo 1991 another InSeptember International Alexandria of 20,000 with acapacity Airport wasestablished and increasecapacity). tons / year (an additional area of 9600 SQM has been recently added to Cairo cargo terminal to improve the cargo flow EGYPTAIRwith 50,000SQMareaandacapacityof120.000 in May1981 its1stcargoterminal CARGOestablished

63 Annual report 2015/2016 Key PerformanceIndicators2015/2016 2014/2015 tobecome298,578tonsinthefinancialyear2015/2016. Total marketweight(Inbound&Outbound)decreasedfrom311,383 tonsinthefinancialyear Company Ltdinordertoservemoredestinationsworldwideandincreasetheloadfactoronitsflights. Swiss International Airlines Ltd,Virgin Atlantic Airways Ltd, Asiana Airlines Inc,and Thai Airways InternationalPublic Limited, Brussels Airlines , Aeroflot Russian Airlines,Qantas AirwaysLtd,Saudi Arabian Airlines,Srilankan AirlinesLtd, International CoLtd,Korean Airlines CoLtd,LOT-Polish Airlines, Malaysia Airline SystemBerhad, Air MacauCompany Air ChinaLtd,Ethiopian Airlines Enterprise,HongKong Airlines Limited,Hainan Airlines CompLtd,Japan Airlines Czech Airlines, China Airlines, Airlines, Bangladesh Biman France, Inc, Air South AfricanAirlink,AmericanAirlines d/b/a EGYPTAIR CARGOhas signedmanyspecialprorateagreementswith25largeairlines Astral Aviation LTD, SA Airlink Transit/kg. Export/kg. Import/kg.

EGYPTAIR MarketShare2015/2016vs2014/2015 Market share-Export 63% 2014/2015 16,591,938 2,945,955 15,401,344 64% Freighter Total CargoCarried2015/2016 61,213,723 5,728,035 20,274,885 bellies 61% 2015/2016 Market share-Import 60% 77,805,661 8,673,990 35,676,229 TOTAL

64 Annual report 2015/2016 Total CARGO2015/2016vs2014/2015 oee a upu o 17 ilo EP atr ae) a ahee i F 21/06 ti ws oe y implementing by done was this 2015/2016; FY in achieved was alternate planstoattractnew business especiallythatofhighyield. taxes) (after EGP million 127 of surplus a However • The impactofembargoontrafficdirectionalitypotentials. • EmbargoimposedtoUSA and Canada. The mainreasonsbehindthat: decrease of25%. in FYAs fortransitshipments,8,677tonswererecorded to 11,511 compared 2015/2016 by a level tonssameprevious While importsrecorded35,676tonsinFY 2015/2016 comparedto 39,010 tonssame previouslevelbyadecreaseof 9%. tons same previouslevel, 83,213 versus 2015/2016 FY in tons 77,806 recorded exports registered, was traffic cargo export in decline 6% A EGYPTAIR CARGOTerminals cover EgyptfromNorthtoSouth

X10000 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 0 Transit/kg. Export/kg. Import/kg. EXPORT 77,806 tons 64% 39,010,180 83,213,048 11,511,466 2014-2015 IMPORT 29% 35,676 tons 35,676,229 77,805,661 2015-2016 8,673,990 7% TRANSIT 8,674 tons

65 Annual report 2015/2016 Duringfiscalyear2015/2016, EGYPTAIR MAINTENANCE&ENGINEERING (EGME) achieved a surplus of199.702million EGP. Experience OurEfficiency

66 Annual report 2015/2016 Board of Directors

Eng. Abu-Talib Tawfik Abu-Talib Chairman and CEO Mr. Mounir Abd El-Wahab El-Zahed Chairman & CEO, Banque Du Caire Eng. Mohammed Tarek Mahmoud Gholam Chairman Assistant, EGYPTAIR Maintenance & Engineering Mr. Sherif Kamal Abdel Galeel Head of the Financial Sector EGYPTAIR Holding Company Capt. Hesham El-Sayed Ibrahim El-Deeb EGYPTAIR Airlines, Chairman Deputy Eng. Mohamed Samy Board Member, Accountable Manager Eng. Khaled Mohammed Ahmed Omar Director of Advertising & Communication, EGYPTAIR Maintenance & Engineering Eng. Alaa El-Din Ahmed Hashem Board Member, Syndicate Representative Mr. Taha Mohammed Metwally El-Heresh Board Member, EGYPTAIR Maintenance & Engineering Mr. Wael Mohammed Abdel El-Kareem Board Member, EGYPTAIR Maintenance & Engineering Annual report 2015/2016 67 EGYPTAIR Maintenance & Engineering (M&E) is the Components Maintenance & Support only full-maintenance, repair and overhaul (MRO) ࿡࿡EGYPTAIR M&E provides components maintenance service provider in Egypt. EGYPTAIR M&E adapts a services for a wide range of aircraft components such as comprehensive strategy to be a reputable affiliated MRO mechanical components (hydraulics, brakes, wheels) using well-developed solutions and maintenance services and avionic components (ATEC, Radio instruments, to support its customers covering different types of aircraft, electrical systems) aircraft’s engines & components. EGYPTAIR M&E is ࿡࿡EGYPTAIR M&E also offers components support committed to support EGYPTAIR operators. EGYPTAIR solutions including access to components pool, loan & M&E works under the approval of the Egyptian Civil exchange options, repair management and warranties Aviation Authority, as well as, EASA Part145 and FAR & guaranties management Part145 approvals. EGYPTAIR M&E has an authorized capital of 500 million EGP. Calibration Services Solutions & Services Portfolio: ࿡࿡EGYPTAIR M&E has the capacity to calibrate many Continuous Airworthiness Management types of measurement instrument and devices such as: Extensive range of tailored solutions are provided; taking ࿡࿡Electrical instrument and devices: DC/AC voltage, into considerations operator’s technical, operational, electrical current and resistance financial and regulatory aspects including but not limited ࿡࿡Pressure instrument and devices: Gas and hydraulic to: gauges ࿡࿡Aircraft acquisition support including technical ࿡࿡Frequency definitions, options selection, warranty and guarantee ࿡࿡Torque terms, safe life policy definition, etc. ࿡࿡Aircraft Leasing Support Non Destructive Testing (NDT) ࿡࿡Fleet Management ࿡࿡Registration Support EGYPTAIR M&E provides NDT services using eddy ࿡࿡Continuous Airworthiness Management current inspection, ultrasonic inspection , X-ray and ࿡࿡Maintenance Planning & Scoping gamma ray inspection, penetrant inspection, and ࿡࿡Assets Deliveries and Redeliveries Management. magnetic partial inspection. ࿡࿡ Airframe Maintenance Certifications & Accreditations ࿡࿡Providing all Ramp/Line Maintenance not only at base ࿡࿡EGYPTAIR M&E holds and maintains the following which is Cairo International Airport, but also at all accreditations & certifications which governs the domestic airports and many international airports. continuous compliance in reference to related ࿡࿡Providing light and heavy maintenance activities regulations and standards: including maintenance checks, modification • ECAA Part 145 (approval Certificate no. EGYPTAIR/ embodiment, striping & painting and repairs. AS/01/98) ࿡࿡EGYPTAIR M&E maintains the capability for the • EASA Part 145 (approval certificate no 0290) following aircraft types: • FAR part 145 (approval Certificate no. 3EMY437B) - Airbus aircraft types: A320 Family, A340/A330 • Calibration Laboratory (ISO 17025) Families, A300-600 and A300B4 • U.S. Department of Transportation (DOT) - Boeing aircraft types: B737-Classic, B737NG, In addition to many local Authorities approvals that B777series & B767, B757 enable EGYPTAIR M&E to provision its services to its - Embraer aircraft types: E170/175 & E190 customers. ࿡࿡EGYPTAIR M&E acts as Embraer Authorized Aircraft Engine Maintenance Service Center for EMB-170/-190, granted by Embraer, the regional aircraft manufacturer. EGYPTAIR M&E maintains the following Engines types: ࿡࿡EGYPTAIR M&E is an approved partner of Boeing for ࿡࿡V2500 A1/A5 and CFM56-5C with the scope of the installation of Blended Winglet for B737 Classic/NG quick engine change (QEC), strip & build, modular aircraft. replacement and engine core overhaul. ࿡࿡EGYPTAIR M&E acts as B/E Aerospace Approved ࿡࿡CFM56-3C, PW 4090/4158 and Trent 700 with the Service Center for Galley Inserts in the African continent. scope of quick engine change (QEC), strip & build and modular replacement. Annual report 2015/2016 68 In 2015/2016, EGYPTAIR MAINTENANCE & ENGINEERING (EGME) sustained its growth with more than 2 billion EGP turnovers; while prompted the profit margin (before tax) to 12% supported by active actions to optimize costs & expenses.

Following EGME strategy to leverage the total income through increasing the third party business, EGYPTAIR MAINTENANCE & ENGINEERING managed to achieve a breakthrough by recording a 30% contribution with an impressive growth of 67% when compared to 2014/15. This growth had been powered by the intelligent deployment of EGME competencies across targeted markets to support the progressive growth of our clients’ operation.

EGYPTAIR MAINTENANCE & ENGINEERING impressively maintained its international approvals & accreditations by following worldwide-recognized standards to secure its clients’ requirements, thanks to the performance of the company; its qualified staff & the dedicated commitment of the management team.

EGYPTAIR MAINTENANCE & ENGINEERING is currently implementing ambitious Transformation Program to modernize the technology platform as well as adding new facilities to enable the company to achieve its vision of being the leading MRO in the region.

Performance Highlights Customers Base In 2015/2016, EGYPTAIR M&E maintains its customer base at the level of 135 contracted customer across its active business streams.

EGYPTAIR M&E Customer Base

130 135 135 130

126

102

10/11 11/12 12/13 13/14 14/15 15/16 Annual report 2015/2016 69 EGYPTAIR M&Egrewaggressivelyitsthirdpartyrevenueby67%tocountfor30% of Total Revenue EGYPTAIR M&Emaintained the Technical DispatchReliabilityforallEGYPTAIR’s fleettypes Technical DispatchReliabilityforEGYPTAIR Fleet Financial Performance relative tothepreviousfiscalyear EGYPTAIRgrowth rateforthe a positive M&Eachieved Totalof 16.6%increase, Revenue Million EGP Million EGP 0 20 40 60 80 100 % 200 400 600 800 0 1.200 1.600 2.000 400 800 0 23% 267.9 10/11 EGYPTAIR AIRLINES 1.206 10/11 EGYPTAIR M&EDispatchReliability 3rd Party Revenue& Contribution 11/12 235.2 18% 2013/2014 1.353 11/12 Total Revenue Growth 12/13 259.3 19% EGYPTAIR Fleet 1.418 12/13 EGYPTAIR CARGO 13/14 276.1 17% 13/14 1.641 2014/2015 21% 14/15 360.6 1.759 14/15 15/16 602.6 30% EGYPTAIR EXPRESS 15/16 2.051 2015/2016 0% 5% 10% 15% 20% 25% 30% 35%

70 Annual report 2015/2016 ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ Development Stages M&E’s EGYPTAIR of one as system, legacy its Transformational Programmilestones,whilesuccessfullymigratedtonewERP solutiontomanagefinancialactivities. replace to solution IT MRO modern new a selected M&E EGYPTAIR ICT Modernization in Terminal #3 facilities andgettingreadytomovesomeactivitiesthenewstate-of-theartcomplex one ofitsmainheavymaintenance EGYPTAIRof and development the renovation its long-termmasterfacilityplan,successfullyaccomplished M&E,following Facility MasterPlan New &On-goingProjects ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ June 2016,EGYPTAIR M&Etakedeliveryofits newcomplexin Terminal #3tomobilizeitforopeningin2016/2017 a launch to technical baseatJohannesburg. Africa, South Aerotec, Global with agreement venture Joint a signed M&E EGYPTAIR 2015, November Augest 2015,EGYPTAIR M&ElaunchedaprojectforaddingtheoverhaulcapabilityenginetypeCFM56-7B May 2013,EGYPTAIR M&EopenedtheIntegratedDriveGenerator(IDG)unitstestworkshopafterrenovation. May 2012,EGYPTAIR M&ElauncheditsnewLinestationinBaghdad,IRAQtosupportIRAQI Airways operation. 170/190 familyintheregion. End of2011, EGYPTAIRservice centerfortheEMBRAER Embraer aircraftservicesnetwork asauthorized M&Ejoined April 2011, EGYPTAIR M&EobtainedtheFAA approvalunderFAR 145asanapprovedRepairStation June 2010, EGYPTAIR M&E was approved as B/E Aerospace Service Center for Galley Inserts in the African continent. End of2008/2009fiscalyear, EGYPTAIR M&Ehitlimitof1billionEGP astotalrevenue. a jointventurebetweenEGYPTAIR Holding,EGYPTAIR M&EandRollsRoyce. June 2009, EGYPTAIR M&E celebrated the inauguration of a new company, Egypt Aero Management Service (EAMS), May 2009,EGYPTAIR M&Ewasnominated“TheBest Airline Third PartyMRO”intheyearly Aviation Industry Awards. to servicecertificate. EASA release to 145 according engine, CFM56-5C first of releasing the EGYPTAIRcelebrated 2008, M&E December March 2008,EGYPTAIR M&EobtainedtheEASA approvalforthenewEngineOverhaulWorkshop. Early 2008,EGYPTAIR M&EcelebratedtheopeningofbrandnewEngineOverhaulWorkshop. lab wascertifiedaccordingtoISO17025 calibration the also organization, certified a be to requirements 9001:2000 ISO fulfilled EGYPTAIRM&E 2007, of End September 2007,EGYPTAIR M&EexpandedtheEASA approvaltocoverBoeingtypes. (Airbus types) September 2006, EGYPTAIR M&E elevated theratingof EASA approval by adding the Base Maintenanceactivities Early 2006,EGYPTAIR M&EobtainedtheEASA Part145approvalforLineMaintenanceactivities. 2002, EGYPTAIR M&EbecameaseparatebusinessentityassubsidiaryofEGYPTAIR HoldingCo.

71 Annual report 2015/2016 Taste of Freshness

During the fiscal year 2015/ 2016, EGYPTAIR IN-FLIGHT SERVICES achieved sales of 491 Million L.E and showed profit of 27.00 Million L.E. Board of Directors

Mr. Ashraf Hamdy Chairman and CEO EGYPTAIR IN-FLIGHT SERVICES Mr. Mohamed Nassar G.M HILTON Pyramids Golf Resort Cap. Mohammed Mostafa El-Shorbagy General Manager of Safety and Quality Sector Cap. Sherif Khalil Head of Operation Sector EGYPTAIR AIRLINES Mr. Alaa Eldien Mohammed Abdallah Vice President Air Hospitality Sector EGYPTAIR AIRLINES Mr. Tarek Mostafa El-Sheikh Planning and Marketing GM EGYPTAIR IN-FLIGHT SERVICES Mr. Hazem Ahmad Abdelrahman Director of Operation EGYPTAIR IN-FLIGHT SERVICES Mr. Ramadan Tantawy Chairman Consultant EGYPTAIR IN-FLIGHT SERVICES Mr. Mohamed Ahmad Abd Elhakim Treasurer EGYPTAIR IN-FLIGHT SERVICES Mr. Osama Taha Syndicate Representative EGYPTAIR IN-FLIGHT SERVICES Annual report 2015/2016 73 opn’ fclte ta wl b eeue i 21/ 2016 2015/ in executed be will that facilities company’s budget EGPMillion of 26.55 in the projects todevelopmental a allocated SERVICES IN-FLIGHT EGYPTAIR profit of27MillionL.E. SERVICES achieved sales of 491 Million L.E and showed EGYPTAIR 2016, 2015/ IN-FLIGHT year fiscal the During Meal, LowCalorieMeal…etc. of the passengers suchas Diabetic Meal, GlutenFree These mealsvaryintheirtypeto meet thedifferent needs in line with the are international standards they of quality and as hygiene. meals of quality the in level performance high a sustained has SERVICES IN-FLIGHT EGYPTAIR Airports. Hurghada and Borg AlArab,Assiut Suhag, in lounge (1) and restaurants (3) cafeterias (26) around International for domesticairports,wemanage Airport and manages Cairo in lounges (11) and SERVICES restaurants (3) cafeterias, (16) IN-FLIGHT EGYPTAIR airport, Borg El- Unit and Unit, Hurghada Sheikh Arab international Airport. units - SharmEl catering As forourdomestic International inCairo we serveanumberofotherairlines of 20,000 meal/ day to cater EGYPTAIR flights. Moreover, we producearound8,000,000meal/yearwithanaverage as production in quantities high the through translated is the years.Ourperformance throughout level performance high a sustained has SERVICES IN-FLIGHT EGYPTAIR ࿡ ࿡ ࿡ of: and focusesonobtaining&maintainingthecertificates with allinternationalrequirementsoffoodmanufacture EGYPTAIR IN-FLIGHT SERVICES iskeenoncomplying outside Egypt. in cateringservicesfor multifarious airlinesinsideand success paramount proved it undergone, has SERVICES Throughout thephasesthat EGYPTAIR IN-FLIGHT activities the aforementioned 2800 devotedemployees. are carriedbyapproximately All Loading/ beside Services. factory, Offloading our from Ice Dry Equipment, Restaurants, EventCatering,LaundryServices,Washing services butalsoSalesonBoard,Cafeteriasand catering only not include to grew It activities. of fields its 2002. in The companywitnessedgreatdevelopments December in SERVICES IN-FLIGHT EGYPTAIR name became a subsidiary of EGYPTAIR HOLDING underthe Service SectioninUnited Arab until it at 1958 Airlines the yearsfromCatering throughout Airport. Itevolved as welltheforeigncarrier'saircraftinCairoInternational in 1947 to handle the catering services for EGYPTAIR fleet EGYPTAIR IN-FLIGHT SERVICES was originally founded ࿡ ࿡ ࿡ SUBPART A301-3-C. of theCivil Legislations Aviation Authority ECAR301 System Management Safety Food of Certification 22000 ISO ISO 9001CertificationofQualityManagementSystem as itdecreased by12%lessthanexpected. production areas. This reflected positively on the total cost in differentare applied and of thecompany departments company isfocusingon.Systems relatedtothispolicy Currently,that the policy is important CostControl which willincreasetheprofits inthefuture. the investmentsincompanyisapriority boosting of 96% planned, differentprojects weredone. planned that This shows as cafeterias, company’s the or units catering whether inCairo,SharmElSheikh,orHurghada

74 Annual report 2015/2016 ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ Main Projects ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ in additiontotheestablishmentofthreeVIP areasforthecompany’s guests. Expanding the event catering activities as a new conference room was established (capacity of 100 persons), high loaders every year for a period of 3 years in order to achieve the required balance in loading the flights. new 4 Purchase DOLL). Brand (German purchased were loaders high 4 as fleet loader high the Renewing and Aero SportClub. As for the cafeterias’ activities (Aero Café), new sites were opened at IOCC, Egyptian company for Aviation, with thecurrentoperatingrequirements. side tocomply its geometrical the productionareaaswellamendingandupdating Improving anddividing employees intheairportarea. an outletaimingtopresentitsserviceswithlowpricesforthe the activitiesthroughestablishing Expanding Regarding theUpgradingofbuilding’s infrastructure,thefollowinghadbeendone: addition, thearrivalareabecameanenclosedonetoachieveahighersafetylevel. any foodordrinksuntiltheyaresorted.In to preserve new refrigerators the arrivalareabyinstalling Enhancing

75 Annual report 2015/2016 Effeciency In Performance

EGYPTAIR GROUND SERVICES is proud to Implement an Enterprise Risk Management covering all company activities. Board of Directors

Mr. Ahmed Mohamed Shaheen Chairman and CEO Mr. Mahmoud Abd Al-Samee Head of Financial and Economic Affairs Division Egyptian Airports Holding Company Mr. Salem Salem Hassan Consultant of Chairman EGYPTAIR HOLDING Co. Mr. Bahader Said Hassan Head of Legal Affairs Division EGYPTAIR HOLDING Co Mr. Adel Mohamed Helal Mohamed Assistant of Stations Division Head EGYPTAIR AIRLINES ENG. Refaat Ma'moun El-Bastawesy Consultant of Chairman EGYPTAIR GROUND SERVICES Co. Mr. Osama Taha Abd-Alrahman Deputy Head of Operation Division EGYPTAIR GROUND SERVICES Co. Mr. Amr Waheeb Mohamed Legal Affairs General Manager EGYPTAIR GROUND SERVICES Mr. Mansour Khalil Al-Shershaby GSE Operator - Operation Sector EGYPTAIR GROUND SERVICES Co. Mr. Salah Ibrahim Khoreshy Syndicate committee Head Annual report 2015/2016 77 EGYPTAIR GROUNDSERVICES providesfullscopeofgroundhandling ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ 6.Representation ofourcustomerscovering: 5.Maintenance andrepairuptooverhaulforalltypesofairport groundequipment. 4.Crew andemployeesgroundtransportation. 3.Loading andunloadingforalltypesof A/C. 2.Ramp handlingforallkindsof A/C. 1.Passenger andbaggagehandling. Through thecomingyears, EGSislookingforward toachievingthefollowing: Through thepreviousyears,EGSisproudto: main stations. the in SLA international Agreement Level Service highest of compliance of the level the certified. using measure IATAhelp to to requirements according being ISO9001/2008 AHM804 techniques customer satisfy besides to 2007 strives constantly since SERVICES Provider GROUND EGYPTAIR Certified ISAGO an is SEVICES GROUND EGYPTAIR and 5,501efficientwelltrainedstaff inaccordancewithIATA andICAOregulations. 224 airlines, about 10 million passengers, 194,236 tons of cargo and 25 million pieces of baggage using 1,244 equipment of flights 143,382 for services ground provided Company SERVICES EGYPTAIRGROUND 2015/2016, year the During services thatincludes: ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ ࿡ Implementing ISO14001.2004&ISO18001.2007 Complying withISAGOinallstations. and equipment. manpower systemforavailable Management Resources an Enterprise Be intheprocesstoimplement Start implementinganEnterpriseResourcesplanningsystemwithOracle. ISO 9001-2008certifiedforqualitysystems. Implement anEnterpriseRiskManagementcoveringallcompanyactivities. continuous asustained toimplement and Luxorstations. at SharmElsheikh,Hurghada with customerairlines of therelation improvement consultants IATA from Certified AHM804 successfully Be stations. Borg Luxor, Al-Arab and Hurghada, Aswan El-Sheikh, Sharm Cairo, at provider certified ISAGO Be e)Hotel accommodationandmedicalcareforthecrew. d)Landing permissionand Airport authorities›feespayment. c)A/C Fuelingandmaintenance. b)A/C Cateringandsecurityservices. a)Supervision ofgroundservicesprovidedforflightsonbehalf ofthecustomerairlines.

78 Annual report 2015/2016 During theyear (2015) No. ofservicesprovided by EGYPTAIR GROUNDSERVICES Performance Highlights: Egyptian airports. 77.6% achieved at the provided services of totalground Market Share SERVICES GROUND 3.EGYPTAIR services). total of (38% stations domestic the at services 95,444 - - 45,462servicesatCairoairport(18%oftotalservices). of out airlines EGYPTAIR Group)representing56%oftotalservices. other (Any Carriers Foreign to 140,906 services provided SERVICES GROUND 2.EGYPTAIR services). total of (13% stations domestic the at services 32,516 - - 79,300servicesatCairoairport(31%oftotalservices). EXPRESS representing44%oftotalservices. 111,816 services to EGYPTAIR AIRLINES and EGYPTAIR provided SERVICES GROUND 1.EGYPTAIR 13% No. ofservices Description 18% 31% Carriers Foreign Foreign 45,462 Percentage ofServicesprovidedby Cairo Airport EGYPTAIR GROUNDSERVICES EGYPTAIR 79,300 38% Carriers Foreign 95,444 Domestic stations EGYPTAIR EGYPTAIR atDomesticStations Foreign carriersatCairo Airport EGYPTAIR atCairo Airport Foreign carriersatDomesticStations 32,516 252,722 Total

79 Annual report 2015/2016 1stProject Projected Costfor2016/2017: EGP 5millions Actual Costof2015/2016:EGP 4.62millions system, applicationofinformationdatacenter to implement Oraclesystem, resources management spending about 22.35 million EGP during five years period through company activitiesautomation Enhancing 3rd project Projected Costfor2016/2017:EGP 38.903 millions Actual Costof2015/2016:EGP 15.22millions staff satisfactionandgoodpresentationofwork. staffsites inCairoand stationsto reach accommodation workshops, building and upgrading through environment of theworkspaceinfrastructure, Enhancement 2nd project Projected Costfor2016/2017:EGP 2.247millions Actual Costof2015/2016:EGP 30.88millions growth requirementsandreplacementplan. competitive serviceQuality& to cover thecorebusiness ensure to fleet equipment the increasing and Modernizing New Projects: other Egyptianairportsthatledtoanobviousdecreasinginthenumberofcustomerairlinesforyear2015/2016. from RussiaandotherEuropeancountriessuchasUK,GermanyNetherlandshaltedflightstoSharmEl-Sheikh and * The suspiciouscrashofaRussian jetinEgypt2015hadaprofoundimpactonthecountry'stourismindustry, airlines EGYPTAIR GROUNDSERVICE Customers Total REF 2 1 4 3 5 Carriersserved Particulars Ramp handling Full handling Over flyingcarriers letter ofagreements through agents 2014/2015 111 245 42 13 76 3 2015/2016 224* 40 13 92 76 3

80 Annual report 2015/2016 The Pleasure of Leisure

During fiscal year 2015/2016, EGYPTAIR TOURISM (KARNAK) & DUTY FREE resulted surplus 7.881 million EGP. Board of Directors

MR/ Rada Aly Metwelly Chairman and CEO EGYPTAIR TOURISM & DUTY FREE MR/ MOHSEN ABU EL- AZM MD, GULF EGYPT COMPANY FOR TORUSIM & HOTELS Mr. Mohamed Youssry Abd Allah VP Commercial EGYPTIAN AIRPORTS COMPANY MR/ WAEL MOHAMED KADRY VP Services EGYPTAIR IN-FLIGHT SERVICES COMPANY MR/ SAYED ISMAIL Member at Board of Directors EGYPTAIR HOLDING COMPANY MR/ AYMAN FAWZY Member at Board of Directors EGYPTAIR TOURISM & DUTY FREE MR/ ASHRAF ELSHAFIE Member at Board of Directors EGYPTAIR TOURISM & DUTY FREE *Mr. Adel Abd El-Salam Ramadan Member at Board of Directors EGYPTAIR TOURISM & DUTY FREE MR/ AHMED ABDU SHEHATA Member at Board of Directors EGYPTAIR TOURISM & DUTY FREE Mr. Aref Mohamed Khairy Abd El Hamid Syndicate committee Head Annual report 2015/2016 82 - 2shopsinthedeparturehall. Cairo - 3shopsinthearrivalhall. at Free Duty finished asfollows: of locations new International Airport (TB2): Part of this project has partially Creating 4) FY 2016/2017. to 2015/2016 year from fiscal postponed been has project with atotalcostofEGP 4million:Implementation ofthe fleet transport commodity Free Duty of Modernization 3) buses havebeenactuallypurchased. 2) Modernization of tourist transport fleet: 2 tourist transfer 130 EGP million. of cost total a with 2018/2019), 2017/2018- - • The project cost is distributed on fiscal years (2016/2017 business conditionsgetimproved. • of the Implementation project hasbeenpostponeduntil terminal 3(CairoInternational administrative Airport ): to next ( ) garage multi-store complex a and Free warehouses building, Duty company Our 1) New andon–goingprojects To organizepodiumoperations. To provideaquickhandlingforanycomplaints. To assurebestservicedeliverytoourcustomers. services inamoredetailedwayandfinallyCreatingDutyFreeCustomerservicedepartment: and products to addition in activities, company’s about information more provide to website the Egyptian Airports, the at at thedifferentthe customerswithlatestitemsavailable which familiarizes application of EGYPTAIR dutyfreelocations mobile the from starting customers, their for services new introduces FREE DUTY & (KARNAK) EGYPTAIRTOURISM situation, thecompanyrevenuesdeclinedamongthisperiod. this for result direct a As countries. Arab of all almost in distress economic and unrest political finally, the and EUROPE USA & from Egypt to coming figures passengers in decrease huge the to due distress business company the deepened and SharmEl-Sheikh,that in Hurghada on itslocations especially about dramaticresultsonthecompanybusiness Our company has been affected by the crash of Metro jet flight on October 31st, 2015 over Sinai peninsula, which brought of EGP 7.881millionafter Tax. is 88% and 12% of tourism division), against a sum of EGP 1.09 billion as total expenditure and expenses with a net profit During fiscal year 2015/2016, the company achieved a sum of EGP 1.1 billion as total revenue (share of Duty free division Performance highlights

83 Annual report 2015/2016 Services for Better Life

Deliver Best Quality Medical services in Egypt According to high standard Level like the developed countries Board of Directors

Dr. Adel Mazrou’ Chairman & CEO EGYPTAIR MEDICAL SERVICES Dr. Tarek Ali Ahmed El shahawy V.P Medical EGYPTAIR MEDICAL SERVICES Dr. El Zaher Hassan El Zaher Member of the Board Mr. Abd El Hameed Salama Mersal VP Human Resources EGYPTAIR HOLDING Mr. Sayed Ismail Member of the Board Mr. Adel Eliwa Youssef Administrative Services Manager EGYPTAIR MEDICAL SERVICES Mr. Sayed Aboud Mahrous Dabour EGYPTAIR MEDICAL SERVICES Mr. Mohamed Sayed Tawfik Hassan Head of Syndicate Committee EGYPTAIR MEDICAL SERVICES Annual report 2015/2016 85 Rdo igoi Dprmn hs en qipd with new openMRI unit aswell high precisionCT-scan equipped been has Department diagnosis Radio - modern hemodialysissystems. Departmenthasbeenupgradedwithnew - Nephrology of backachewithoutsurgicalintervention. Invasive minimal - Establishing Unit fortreatment Therapy - IntroducingShockWave therapyfororthopediccases. - UpgradingtheShockWave lithotripsyUnit. Haemorrhage Unit,Hypertension,andDiabetologyUnit. units: StrokeUnit,Intestinal offournewmedical - Creation the generalsurgery, obstetrics&gynecological surgeries. on floor) (second theater operative surgical Advanced - medical sector. - Staff training eitherfor administrative employeesor staff ofspecialists&experts. - Upgrading emergency department (ER) through qualified & - physiotherapy Department. Upgrading therehabilitation treating deformationsconcerningtheeyemedicine. LASIK machine for correcting eyevisionmeasurements& - departmentthenewest totheOphthalmology Adding - UpgradingSurgery&OncologyDepartments. Internal Review We wereaccreditedforourefforts inmedicaltourism. Health TourismOctober 2016. in Dubaiduring Congress Worldattended It istobenoticedthatwe our hospitals. in from patients especially to betreated Africans countries standards. Tailoringtourism programstoattract medical international to according services medical of quality best to public eitherfrom Egypt or from abroad to deliver the offered are Currently, services workers. field aviation civil families. Lateron, its services wereextendedto cover all to EGYPTAIRits servicesonly and their employees offering by out started SERVICES MEDICALEGYPTAIR and 267foradministrative employees. programs fordoctors,67nurses conducted 80training our staff,developing EGYPTAIR Medical Services surgeries. Concerning 108 successfulminoropen-heart rate, 201 successful majoropenheartsurgeriesand Liver transplantsurgeriessince 2007,with91%success October 2005,48 since done cases were catheterization average of80casesperday. About 2134successful FYDuring an has received the hospital 2015-2016, or internationalconsultantsandmedicalprofessors. of Egyptian seniors contracts withexperienced - Signing the bestmedicalservicestoourcustomers. to offerinstitutions from otherinternational and hospital from ourFrench partnerGeorgePompidou coming experts for thevisitofmedical - Creationofaschedule and updated lectures. CONFERENCE live to give French consultants to allow experts and VIDEO international with Frenchand of opinions the exchange a TELEMEDICINE systematEGYPTAIR HOSPITAL Establishing toallow - External Review - KidneyDialysisInstruments(14machine). - Femto–LazerSurgicalDepartment. filing systems. patients and records medical as well as activities, - Automating all hospital systems, financial or administrative and establishing arestaurantforphysiciansandstaff. meals and diets patients’ for catering Developing - network. - Upgrading and automation of the hospital’s communication - Updatedinformationnetworkprofile. - Raisingtheefficiencyofhospitalinfrastructure. entrances. - interface and hospital of renovating The completion system.

86 Annual report 2015/2016 Manufacture theFuture

87 Annual report 2015/2016 Board ofDirectors Representatives ofEGYPTAIR labor unioncommittee YahiaMohammed AbdAl-Fattah AbdAl-Fattah Eng. Hesham Abd El-HafeezSoleiman Eng. Hussein Abdul-Halim Al-Refaaey Eng. EGYPTAIR's Supplementary Industries EGYPTAIR's SupplementaryIndustries EGYPTAIR SupplementaryIndustries EGYPTAIR SupplementaryIndustries The PlasticfactoryGeneralManager Eng. El-SayedFaisalMohammed Eng. MosaadMohammedMossa EGYPTAIR In-FlightServicesCo. Mr. MohammedSayed Abdullah Member oftheBoardDirectors Member oftheBoardDirectors Mr. Talaat MohammedEl-Nady Civil Aviation ministerconsultant Mrs. Amani MahmoudSabry Mgr. ofSocialInsuranceDept. Mr. Tarek Ragaa Al-Desouky Eng. Adel KamelMansour Operation headsector Civil Aviation Expert Civil Aviation Chairman &CEO Technician

88 Annual report 2015/2016 • aluminumfoil foodcontainerproductionline. cutlery packing…etc. (sugar-creamer-salt-pepper), sachets towel, refreshing as items such line toproduce • FillingandPackingproduction cup, plate,bowel,lids…etc). linetoproduceitemssuchas tray,• Injectionproduction lunch box,sandwichcontainer, bowel,lid...etc.) • as items such to produce line production Thermoforming thermoforming products. line toproducesheetsfor • Plasticrollsproduction production lineswhichare: Egyptian the Civil Aviation Authority. by a varietyof The factoryoperates certified and reviewed are which parts also has a line formanufacturinginterioraircraftcabin established company The standards. quality international items usingaselectionof materials, whichmeetthe in-flight for used items services. catering pre-packed provides also AeroPlast plastic all produces AeroPlast AeroPlast quality atcompetitiveprices. product, byofferingvalue its customersunbeatable fashionand final the give to to dedicated is and idea quality on focuses AeroFashion an of conception the From for industrial,medicalandhospitalitywear. to itscustomers. addition uniform produces AeroFashion of EGYPTAIRneeds in shoes and uniform foremployee's the latestdesignsandsewingmachinestosatisfyall clothing factory,is aready-made AeroFashion whichuses AeroFashion inspections, whichassuretheproductquality. finishing a through goes section. process atthepackaging All stagesaresubjectto product the machines, tech process andprinting. After printing iscompleted,onhigh- who createdesignsandcontinuesthroughthemontage production processstarts with a team of professionals technologies to cover all EGYPTAIR’s needs. The AeroPrint with thelatest house printing is amodern AeroPrint AeroPrint products. and Leather,Furniture PlasticProductsandwooden comprises four different factories PrintingHouse,Uniform EGYPTAIRIndustries Company Supplementary (EGAC) as it meets the ISO/IEC 17025-2005 requirements. Council Accreditation Egyptian the by certified also is lab aircraft cabin interior parts production, and its flammability (ECAA) for Authority Aviation Civil isalso Egyptian by certified which AeroPlast, for certified 9001:2008 ISO is the satisfactionofitscustomers, ensure The company always seeksto provide the most competent servicesto (EASI) Company Industries Supplementary EGYPTAIR AeroWoodand furnishing. canalsocarryoutinterior design to themanufacturingof addition custom-made furniture, In kitchens. and rooms kid’s reception, dining, bedrooms, all classicormoderndesigns for house furnitureincludes The furniture). hotel and office (house, furniture of types thebest and furniture. AeroWoodall to manufacture hasthecapability selected are in the processes areemployed manufacturing AeroWood materials finest the Only AeroWood all pre-requisitepreparationstomeettherequirements. acquire on carrying to is and certifications and approvals plans additional Company Industries Supplementary standards. EGYPTAIRinternational IEC 17025:2005 ISO/ the of requirements the with compliance in (EGAC) by the Egyptian accredited Council Accreditation Supplementary IndustriesFlammability Test Lab is theignition EGYPTAIRautomotive interiors,electricwireinsulation. measures tents, carpets,curtains, materials, protectiveclothing, lab test for resistant properties aircraft interior cabinparts flammability The Flammability Test Lab lines. the production serve all of molds,which the manufacturing for machines key three with equipped molds. is AeroPlast of kinds all produces complex CNC unique a addition, In

89 Annual report 2015/2016 during thefiscalyear2016/2017. andruninto operation willbeestablished line ofproduction Arrangements takeplacefor getting themachines. This high densityplasticbagsfor allpurposesiscompleted. - Afor lowand line study tosetupaproduction feasibility year 2016/2017. fiscal the of quarter second the during start to expected agreement done during 2015/2016whereproductionis to produce a paper cupfor hot drinks reachanendand - with EGYPTAIR Also negotiations Company Airlines the fiscalyear2016/2017. of quarter third the during start to expected is production (thin technology where running is weight new cup the reduce to with injection) wall cup plastic transparent for - In addition, the approval to establish aproductionline On- goingproject items- uniform-printedflyers-officefurniture). (catering products manufactured our of variety a ordered NESMA AIRLINES, AL AHLY NATIONAL BANK, etc. that SS with NILEcontracts services, flight for E.A.S AIR, AIR, as ourmarketingteamhasgonethroughmany 2016/2017 income and it is expected to reach 6% during the fiscal year year 2015/2016as it represents 4% from the company total - Increasing 3rd party revenues was a goal during the fiscal EGP 5Mtoproduceannually10millionfoil containers. EGYPTAIR with atotalinvestmentof Company Airlines of requirements the fulfilling training staff the conducting the fiscal year 2015/2016 after installing the machines and of quarter third the during started item the this as of production 2016 February costumer on started container), primary foil the (the for Company Airlines EGYPTAIR - The provisionofaluminumfoilfoodcontainer to for thisaccreditation. renewal by a got has 17025-2008, ISO/ICE of certified requirements is the to according which (EGAC) Council Accreditation Egyptian Lab, Testing Flammability The interior partsbytheEgyptianCivil Aviation Authority. Production Organizationfor190aircraftcabin Approved for an 9001:2008 as certified becomes ISO it where renewed are certificates: AeroPlast existed already The - repeated deficits. for theannual of themainsources one factory represents as this impact fortherevenues a positive have will on 24/2/2016which byadecision action iscompleted to EGYPTAIRliabilities Company.Services Ground This transfer to AeroMetal withallitsassets, staff, activities and Assembly General company’s the by approved is It - Performance Highlight procedures improvement. 2016/2017. year We are looking to have apositiveimpact throughwork fiscal the of beginning the in factories out forother carried to be and itisplanned AeroFashion the revenues.Suchkindof study isalreadydonefor also toincrease and the performance develop and improve to how and deficit the for causes root the decide - unit to There wasanextensivestudyforeachproduction year 2016/2017withtotalinvestmentofEGP 6.7M. expected to be completed by the fourth quarter of the fiscal for allouractivities. needs and production material This is area whichbecomesanecessarydemandfor storing the - Ais set-uptoincreasethestorage storecomplex building

90 Annual report 2015/2016 Corporate Social Responsibilities and 47thsessionsrespectively. in the46th during bothyears in Cairo 2015-2016 annually - EGYPTAIR wasasponsorofInternationalBookFair held Conference. - EGYPTAIR theOfficialCarrierofFirstNational Youth Dhabi. trip; fromBurg to Bombay,Al-Arab to thenBombay Abu her treatment woman, through Egyptian most overweight EGYPTAIR- Eman transported Cargo Abdel-Aaty,world’s Tourism Market COTTMin APRIL 2016. -EGYPTAIR participationinChinaOutbound Travel & - EGYPTAIR participationBudapest Travel Market2016 Competitiveness ForumheldonMarch29th,2016. Economic US the of carrier official the EGYPTAIRwas -

92 Annual report 2015/2016 Sharm el-Sheikh. of Telecommunicationsin in May 2016 held Organisation Forum the International of carrier official the EGYPTAIR 2016. in April in Canada held conference Handling Ground International - EGYPTAIRof theannual in the29thsession Participation universities inGerman. -EGYPTAIR hostedEgyptian femalestudentsstudyingin 2016. - EGYPTAIR donation for a Wellin ChadOctober drilling student duringtheirvisittoBarcelonainJuly2016. Academy Al-Khatib of 105 to Carrier official EGYPTAIR - 2016. - EGYPTAIR Participation in Air Cargo China held in June

93 Annual report 2015/2016 Greece. - EGYPTAIR ParticipationinPhiloxeniatravelmarket - EGYPTAIR participationinLondon Travel Market2016. Erbil ExpoinOctober2016. the for carrier in transportation ofEgyptiancommoditiesparticipating official an as Participation EGYPTAIR - - EGYPTAIR ParticipationInITBBerlin2015 Commodities expoheldinMuscat2015 - EGYPTAIR theofficialcarrierofEgyptian - EGYPTAIR Participationin Fitur

94 Annual report 2015/2016 95 Annual report 2015/2016