Egypt settles $39m dispute with Mercedes-Benz importer -ministry

The Mercedes-Benz logo is seen on the second press day of the Paris auto show, in Paris, France, October 3, 2018. (Reuters)
Updated 14 January 2019
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Egypt settles $39m dispute with Mercedes-Benz importer -ministry

  • An Egyptian cabinet statement said that Mercedes-Benz production chief Markus Schaefer had told PM Mostafa Madbouly that they were looking to resume operations in Egypt
  • Mercedes-Benz halted assembling its vehicles in Egypt in 2015

CAIRO: Egypt has settled a 700 million Egyptian pound ($39.2 million) dispute between its customs authority and an importer of Mercedes-Benz vehicles, the finance ministry said on Sunday.
The ministry did not name the company and said in a statement that a governmental committee tasked with resolving investment disputes ordered the settlement, without providing details.
The announcement came two days after an Egyptian cabinet statement said that Mercedes-Benz production chief Markus Schaefer had told Prime Minister Mostafa Madbouly that the carmaker was looking to resume operations in Egypt and is considering assembling additional models in the country.
Mercedes-Benz halted assembling its vehicles in Egypt in 2015, but in 2017 the company had agreed in principle to a resumption in production, state-run news outlet Al-Ahram said.
Egypt announced in 2017 that Mercedes-Benz would return to the country with a new 50,000 square meter distribution center in the Suez Canal Economic Zone. ($1 = 17.8600 Egyptian pounds)


Lufthansa announces overhaul of budget carrier Eurowings

Updated 24 June 2019
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Lufthansa announces overhaul of budget carrier Eurowings

  • Lufthansa cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16
  • Eurowings’ long-haul business would be managed by Lufthansa in the future

BERLIN: Lufthansa on Monday announced a turnaround plan for Eurowings in which the budget carrier will focus on short-haul flights and seek a 15 percent cut in costs by 2022 in the hope of returning to profit.
The German airline cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16. Eurowings’ revenue was also forecast to fall sharply in the second quarter.
Lufthansa said its Eurowings fleet would be standardized on the Airbus A320 family and it would seek to boost productivity at Eurowings by limiting itself in Germany to one air operator’s certificate.
Brussels Airlines — the Belgian national flag carrier which Lufthansa took control of in 2016 — would not be integrated into Eurowings, Lufthansa said. A turnaround plan for Brussels Airlines will be announced in the third quarter.
Lufthansa also said it would start pegging its dividend payout ratio to net profit in the future to give the group more flexibility. It would pay out a regular dividend of 20 percent-40 percent of net profit, adjusted for one-off gains and losses.
Lufthansa said Eurowings’ long-haul business would be managed by Lufthansa in the future.
Carsten Spohr, Chief Executive Officer of Lufthansa, said Monday’s announcements sent “a clear signal that this company cares about its shareholders and tries to create value for them.”
Lufthansa said its Network Airlines — made up of Lufthansa, Swiss and Austrian Airlines — would aim to use innovations in sales and distribution to make a contribution to increasing unit revenues by 3 percent by 2022.
Network Airlines will aim to reduce unit costs continuously by 1 to 2 percent annually, the airline said.