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Algeria Plans To Launch New Domestic Carrier

October 7, 2020

The airline market in Algeria is set for a shakeout after Algeria’s government announced plans to launch a new airline. That new airline would focus on domestic routes while the state-owned carrier, Air Algerie, will concentrate on international services. It’s part of a push by the government to get more private sector involvement across Algeria’s transportation industries.

The announcement follows a decision last weekend to reopen domestic airports and resume domestic flying. Domestic flights were grounded in March for health reasons.

A restructure of Air Algerie is on the cards

At the same time, the Algerian Government appears keen to re-energise the local airline market. The Algerian President, Abdelmadjid Tebboune, is interested in improving air links within Algeria. He’s flagged restructuring Air Algerie and opening the domestic market to new competition.

Algeria’s border have remained closed since March. With domestic services also suspended, that’s effectively crippled Air Algerie. In July, the airline reported a loss of US$130 million. It was the fourth straight year of losses for the airline. By the end of 2020, losses of nearly $700 million are predicted.

In August, the Algerian Government said it would provide some financial assistance to Air Algerie. However, the government did not specify how much.