No. TRANSPORT PLANNING AUTHORITY MINISTRY OF TRANSPORT THE ARAB REPUBLIC OF EGYPT MiNTS – MISR NATIONAL TRANSPORT STUDY THE COMPREHENSIVE STUDY ON THE MASTER PLAN FOR NATIONWIDE TRANSPORT SYSTEM IN THE ARAB REPUBLIC OF EGYPT FINAL REPORT TECHNICAL REPORT 5 CIVIL AVIATION AND PIPELINE SECTOR March 2012 JAPAN INTERNATIONAL COOPERATION AGENCY ORIENTAL CONSULTANTS CO., LTD. ALMEC CORPORATION EID KATAHIRA & ENGINEERS INTERNATIONAL JR - 12 039 No. TRANSPORT PLANNING AUTHORITY MINISTRY OF TRANSPORT THE ARAB REPUBLIC OF EGYPT MiNTS – MISR NATIONAL TRANSPORT STUDY THE COMPREHENSIVE STUDY ON THE MASTER PLAN FOR NATIONWIDE TRANSPORT SYSTEM IN THE ARAB REPUBLIC OF EGYPT FINAL REPORT TECHNICAL REPORT 5 CIVIL AVIATION AND PIPELINE SECTOR March 2012 JAPAN INTERNATIONAL COOPERATION AGENCY ORIENTAL CONSULTANTS CO., LTD. ALMEC CORPORATION EID KATAHIRA & ENGINEERS INTERNATIONAL JR - 12 039 USD1.00 = EGP5.96 USD1.00 = JPY77.91 (Exchange rate of January 2012) MiNTS: Misr National Transport Study Technical Report 5 TABLE OF CONTENTS Item Page CHAPTER 1: INTRODUCTION.........................................................................................................................1-1 1.1. BACKGROUND...................................................................................................................................1-1 1.2. THE MiNTS FRAMEWORK.................................................................................................................1-1 1.2.1. Study Scope and Objectives.......................................................................................................1-1 1.2.2. A Consultative Planning Process ................................................................................................1-2 1.2.3. Sustainability and Human Resources Development ...................................................................1-3 1.3. REPORTING STRUCTURE................................................................................................................1-3 CHAPTER 2: CIVIL AVIATION .........................................................................................................................2-1 2.1. OVERVIEW OF CIVIL AVIATION ........................................................................................................2-1 2.2. ADMINISTRATIVE FRAMEWORK IN EGYPTIAN AIR TRANSPORT SECTOR.................................2-2 2.2.1. Ministry of Civil Aviation (MCAA).................................................................................................2-2 2.2.2. Egyptian Holding Company for Airports and Air Navigation (EHCAAN)......................................2-4 2.2.3. EgyptAir Holding Company (EAHC)............................................................................................2-7 2.3. EXISTING AIR TRANSPORT SYSTEMS............................................................................................2-9 2.3.1. Classification of Airports..............................................................................................................2-9 2.3.2. International Air Routes.............................................................................................................2-12 2.3.3. Domestic Air Routes..................................................................................................................2-13 2.4. AIR NAVIGATION..............................................................................................................................2-16 2.4.1. Existing Navigation System.......................................................................................................2-16 2.4.2. New CAN/ATM Systems in Egypt .............................................................................................2-17 2.5. INTERNATIONAL AIRLINES.............................................................................................................2-19 2.5.1. Domestic Airlines ......................................................................................................................2-20 2.5.2. Fleets and Load Factors of EgyptAir Airlines/ EgyptAir Cargo / EgyptAir Express....................2-20 2.6. AIR TRAFFIC MOVEMENT...............................................................................................................2-21 2.6.1. Overview of Air Passenger Traffic in Egypt ...............................................................................2-21 2.6.2. International Air Passenger Traffic ............................................................................................2-24 2.6.3. Domestic Air Passenger Traffic.................................................................................................2-28 2.6.4. Air Cargo Traffic ........................................................................................................................2-32 2.7. THE ROLE OF TOURISM.................................................................................................................2-35 2.7.1. Travel Patterns..........................................................................................................................2-36 2.7.2. MENA Comparison....................................................................................................................2-37 2.8. FINANCIAL ASPECT.........................................................................................................................2-40 2.8.1. Financial Figure of EHCAAN.....................................................................................................2-40 2.8.2. Financial Figure of EAHC..........................................................................................................2-41 2.8.3. Fees and Charges at Airports ...................................................................................................2-42 2.8.4. Air Fare .....................................................................................................................................2-44 2.9. REGULATIONS.................................................................................................................................2-45 2.9.1. General Laws............................................................................................................................2-45 2.9.2. Special Laws.............................................................................................................................2-46 2.9.3. Republic Decrees......................................................................................................................2-46 2.9.4. Decrees of the Presidency of the Council of Ministers and Civil Aviation Minister decrees. .....2-47 2.9.5. Rules and Regulations of the Civil Aviation (EGYPTIAN Civil Aviation Regulation: ECARs): ...2-47 i MiNTS: Misr National Transport Study Technical Report 5 2.10. PRIVATE PARTICIPATION AND PRIVATIZATION IN THE AVIATION SECTOR...............................2-49 2.10.1. Background...............................................................................................................................2-49 2.10.2. BOT Airports..............................................................................................................................2-49 2.10.3. Private Participation to 6 Airports..............................................................................................2-50 2.11. CURRENT PLANS AND PROJECTS................................................................................................2-51 2.11.1. Development Vision ..................................................................................................................2-51 2.11.2. Development Plan.....................................................................................................................2-54 2.11.3. Committed Projects...................................................................................................................2-56 2.12. ISSUES IN AVIATION SECTOR IN EGYPT......................................................................................2-60 2.12.1. Modernization of Passenger Terminals .....................................................................................2-61 2.12.2. Up-grading Airport Facilities Complying with ICAO SARPs ......................................................2-61 2.12.3. Impact for Future Budget Allocation..........................................................................................2-62 CHAPTER 3: PIPELINE SECTORS .................................................................................................................3-1 3.1. OVERVIEW OF PIPELINE..................................................................................................................3-1 3.2. ADMINISTRATIVE FRAMEWORK IN PIPELINE SECTOR ................................................................3-1 3.2.1. Ministry of Petroleum (MOP).......................................................................................................3-1 3.2.2. Egyptian General Petroleum Corporation (EGPC)......................................................................3-2 3.2.3. Egyptian Natural Gas Holding Company (EGAS) .......................................................................3-2 3.2.4. Egyptian Petrochemicals Holding Company (ECHEM)...............................................................3-2 3.2.5. Granoub El Wadi Petroleum Holding Company (GANOPE) .......................................................3-2 3.2.6.