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

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)


New Delhi to sell full stake in debt-ridden Air India

Updated 27 January 2020

New Delhi to sell full stake in debt-ridden Air India

  • The airline, which owes more than $8 billion, has been struggling to pay salaries and buy fuel
  • Formerly India’s monopoly airline, carrier was once known affectionately as the ‘Maharaja of the skies’

MUMBAI: New Delhi intends to sell its entire stake in the debt-crippled national carrier Air India, the government announced Monday, after failing previously to secure any bids for a majority share.
The airline, which owes more than $8 billion, has been struggling to pay salaries and buy fuel, with officials recently warning that it would have to shut down unless a buyer was found.
On Monday the civil aviation ministry released a document inviting bids for a 100 percent stake, setting March 17 as the deadline for initial submissions.
Potential buyers would have to assume around $3.26 billion in debt, the document said.
The government was forced in 2018 to shelve plans to sell a 76 percent stake in Air India after failing to attract any bidders.
India’s Tata Group, Singapore Airlines (SIA) and IndiGo were all linked to a takeover but subsequently ruled themselves out.
Founded in 1932 and formerly India’s monopoly airline, the company was once known affectionately as the “Maharaja of the skies.”
But it has been hemorrhaging money for more than a decade and has lost market share to low-cost rivals in one of the world’s fastest-growing but most competitive airline markets.
In November aviation minister Hardeep Singh Puri had said the airline would “have to close down if it is not privatized.”
State-run oil companies halted fuel supplies to Air India in August after it fell behind on payments, though the firms agreed to lift the suspension a month later after talks brokered by the government.
The country’s aviation sector has been stuck in a slump since the collapse of Jet Airways last year.