Middle East Airlines Moves Most of its Planes from Lebanon

FILE PHOTO: Lebanese Middle East Airlines (MEA) planes are pictured at the tarmac of Beirut international airport, Lebanon February 16, 2020. REUTERS/Mohamed Azakir
FILE PHOTO: Lebanese Middle East Airlines (MEA) planes are pictured at the tarmac of Beirut international airport, Lebanon February 16, 2020. REUTERS/Mohamed Azakir
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Middle East Airlines Moves Most of its Planes from Lebanon

FILE PHOTO: Lebanese Middle East Airlines (MEA) planes are pictured at the tarmac of Beirut international airport, Lebanon February 16, 2020. REUTERS/Mohamed Azakir
FILE PHOTO: Lebanese Middle East Airlines (MEA) planes are pictured at the tarmac of Beirut international airport, Lebanon February 16, 2020. REUTERS/Mohamed Azakir

Lebanese carrier Middle East Airlines (MEA) decided to move a number of its airplanes to neighboring countries as a precaution in case of conflict, thus reducing the number of its daily flights from and to Beirut.

The decision came after changes to the company’s insurance coverage policy following the Oct. 7 Hamas attack on Israel.

MEA said it was informed by the insurance companies about a decision to reduce their war risk coverage.

Mohammed Al-Hout, chairman of MEA, said only eight of the company’s 22 planes would operate as of next week, with the rest relocated to other airports.

Only one-third of the company’s flights scheduled before the crisis will remain operational.

MEA plans to move ten of its airplanes to neighboring countries including Cyprus, Oman, and Doha. Seven airplanes will continue flights as normal at Beirut Airport.

Al-Hout said insurance companies began to worry about the risk of war when the Israel-Hamas “Operation Al-Aqsa Flood” started, and an assessment was carried out in cooperation with them.

According to the Chairman of MEA, insurance coverage for war risks has been reduced by approximately 80 percent. “However, our priority is to secure communication between Lebanon and the rest of the world,” he said.

“We don’t have security information about a possible attack on the airport in Lebanon but references and all the information we got indicated that the operations will remain within the rules of engagement and under control in southern Lebanon,” Al-Hout affirmed.

Similar concerns arose during the 2006 July War when Israeli airstrikes targeted Beirut's Rafic Hariri International Airport.

“In 2006, the airport was bombed and there were six planes stuck in Lebanon. Through contacts, the Israelis gave us a margin of time to evacuate the planes. However, today the situation is different and it's about insurance companies,” he said.

MEA’s decision came while several countries advised their nationals to leave Lebanon amid rising regional tensions related to the Israel-Hamas war.

On Friday, Oman's embassy in Beirut urged Omani citizens to leave Lebanon immediately “due to the events taking place in the region” in a post from the embassy on social media platform X.

Belgium and Ukraine issued similar travel warnings.

Pierre Achkar, President of the Federation of Tourism Syndicates and the Syndicate of Hotel Owners, revealed significant losses that the Lebanese tourism sector is expected to incur due to the ongoing conflict in Gaza and the developments in southern Lebanon.

He anticipated that tourism establishments would lose the profits they had earned during the summer season.

Moreover, he disclosed that “European groups planning to visit Lebanon during October and November have canceled their reservations following their countries' travel warnings about going to Lebanon.”



World Bank Looking to Free up Emergency Funds for Lebanon, Managing Director Says

 A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)
A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)
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World Bank Looking to Free up Emergency Funds for Lebanon, Managing Director Says

 A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)
A plume of smoke billows following an Israeli air strike on the village of Khiam in southern Lebanon near the border with Israel on October 7, 2024. (AFP)

The World Bank is looking to free up emergency funds for Lebanon, potentially including up to $100 million through the use of special clauses in existing loan deals, its managing director of operations told Reuters.

The Washington-based development lender currently has $1.65 billion in loans to the country including a $250 million loan approved this week to help connect dispersed renewable energy projects in the country.

Amid fighting across southern Lebanon, the bank was currently discussing ways in which it could help support the economy, including through the use of so-called Contingent Emergency Response Component (CERCs) clauses.

"We can use our existing portfolio and free up some money for really critical, short-term liquidity needs," Anna Bjerde said.

CERCs are present in around 600 of the bank's existing projects, globally, and allow it to redirect funds that have yet to be disbursed, if requested to by a government, for example after a health or natural disaster, or during conflict.

Lebanon has yet to make such a request, Bjerde said.

After a year of exchanges of fire between Hezbollah and Israel mostly limited to the frontier region, the conflict has significantly escalated in Lebanon.

Hezbollah fired rockets at Israel's third largest city Haifa on Monday, while Israeli forces looked poised to expand ground raids into south Lebanon on the first anniversary of the Gaza war, which has spread conflict across the Middle East.

Lebanon's government could choose to use an existing social protection program that was put in place during the COVID-19 pandemic that allows for financial support to be sent to individuals, Bjerde said.

"It has the benefit of being totally digital so you can reach people, plus it can be verified a bit... so we will also probably use that to top up the social safety net for those that are particularly affected."

Up to 1 million people have been internally displaced in the country, she added: "So it's important we focus on that".

Lebanon's finance ministry and economy ministry did not immediately respond when asked for comment.