vfenext, The teacher flights are an annual occurance but they are always operated by charter flights and most route via CAI. I doubt that would warrant the growth by all these airlines. As for HBE, I have flown there around 4 times (BMed from LHR) and I don't think its that bad...the only problem is the lack of adequate transport links to Alex city centre.
Besides the airport is under utilised and at the moment it only recieves 3x weekly A320 flights from BMed/BA, 10x weekly A320 flights from G9 (increasing to 14x weekly this month) and next week EK will have a daily A310 plus IY B738s. My point is that the chances of having any 2 flights sitting on the apron at any one time are low (check flight times) so congestion is not an issue yet.
Itswindyout, yes its true the Egyptian government are currently developing the North coast but that development is currently being concentrated around the brand new El-Alamien Airport which only opened last month (
http://www.airbp.com/airbp/public/news/EL_Alamin.html ) and that caters for the new Movenpick resort (first resort on the North Coast)
As you said the facilities at ALY are quite out dated. The authorities haven't bothered rennovating the airport as until now it handled very few flights so they questionned whether it was worth the investment. It seems that decision has hurt them now and at least to me it was clear that it was only a matter of time before Egypt's second city really developed its air links...I just didn't think it would happen so rapidly.
However things should be looking brighter in the future according to this article.
http://weekly.ahram.org.eg/2005/737/ec7.htm
What worries me is how ALY will cope over the next 3 years without any planned rennovation/expansion work till it closes down?