The new program adopts an incentive scheme that rewards the occupied seats unlike the old one where the incentive was paid on the empty seats. The new governing procedures are effective as of the 1st of November, 2014 till 31st of October, 2015 with the following details:
Rules of the Charter Incentive program to be applied in Sharm El Sheikh, Hurghada, Marsa Alam, and North Coast (Al Alamein & Marsa Matruh) airports:
The below incentive is to be paid for each occupied seat pending on the flight duration and in cases where the charter flight has achieved a minimum load factor over 50% and a max load factor of 90%.
Airport
|
Load Factor
|
Flight Duration less than 4 Hours
|
Flight Duration exceeds 4 Hours
|
Sharm El Sheikh
|
50-90%
|
EGP 210
|
EGP 280
|
Hurghada
|
Marsa Alam
|
North Coast (Alamein & Mersa Matruh)
|
Rules of the Charter Incentive program to be applied in Luxor, Aswan and Taba:
The below incentive is to be paid for each occupied seat pending on the flight duration and in cases where the charter flight has achieved a minimum load factor above 40% without placing any restriction on the maximum load factor (i.e., 100%).
Airport
|
Load Factor |
Flight Duration less than 4 Hours
|
Flight Duration exceeds 4 Hours
|
Luxor
|
40-100%
|
EGP 280
|
EGP 350
|
Aswan
|
Taba
|
Another communiqué was issued to further clarify the new procedures and mechanism and sums up as follow:
- For charter flights with occupancy exceeding 90% in the Airports of Sharm El Sheikh, Hurghada, Marsa Alam, El Alamein, and Mersa Matruh, these will not be excluded however the incentive paid will be on the basis of the occupied seats above the load factor of 50% up to 90% (even if the load factor reaches 100%).
- For Taba flights, the agent must provide proof of lodging at hotels in Taba, Nuweiba or Dahab.
- The seats occupied by children over the age of two years will be reimbursed. Infants will be excluded
- Borg El Arab airport is excluded from the charter incentive program.
- For the double-touch flights, the incentive will be calculated on the ranges of occupancy of the first touch point only.
- For low-cost carriers that operate as charter flights to/from the Airports of Sharm El Sheikh, Hurghada, Marsa Alam, El Alamein and Mersa Matruh, documents must be presented by the Egyptian representative of the airline company or the Egyptian travel agent provided the conditions to qualify for the incentive are met. And in case where there is more than one tour operator, only one must be assigned as the single point of contact.
- Charter applications are to be submitted maximum two months prior to the date of arrival of the flight.
- For direct incentives on occupied seats for flights to Sharm El Sheikh, Hurghada, Marsa Alam, El Alamein and Mersa Matruh, no incentive will be calculated on the load factor till 50% of the occupancy per flight. Instead, the incentive will be calculated based on the occupied seats above the load factor of 50% and up to 90% and to be calculated in accordance with the duration of Aviation.
- For direct incentives on occupied seats for flights to Luxor, Aswan and Taba Airports, there will not be any incentives on the seats up to 40% load factor per flight. The incentive is calculated for each seat after achieving the load factor of 40% and up to 100% according to the duration of the flight.
In the same context circular #278 for the year 2014 was issued in which the Ministry of Tourism declared that it will bear 75% of the value of landing fees and the ground services at airports in Luxor, Aswan and Taba with a maximum of US$ 3000 per flight on behalf of the airline. Adding that it will reimburse these fees to the Egyptian Airports Company, Egypt Air for Ground Services and the Egyptian Company for Ground Services in accordance with the claims to be submitted by the companies.
This incentive to be applied in Airports of Luxor, Aswan and Taba according to the following:
- Payment of the amount of USD 2,000 with a maximum value of ground services that are being provided to the flight airlines for each journey.
- Payment of the amount of USD 1,000 with a maximum of USD 5 per passenger out of the departure fees applied.