The Algerian government decides to create an internal air transport company to activate 36 airports

The Algerian government decided to establish a airline company that belongs to the main company (Algerian Airlines), to run the internal lines, to devote the parent company to run external lines, in a way that allows it to restore its balance and an important share of the international transport market.

Algerian President Abdel Majid Taboun decided during a government meeting devoted to the air transport file, yesterday evening, Wednesday, the establishment of a national company specialized in internal air transport, affiliated with the Algerian Airlines. During the meeting, the position of the Algerian Airlines company and the Tassili Aviation Company (government affiliated to the Sonatrach Company) were discussed.

The implementation of this step was delayed for a period of five years, as the former Minister of Transport for Zahr Hani announced in October 2020 a government decision to create a public air transport company that sponsors the internal lines, attributed it to “the difficulties facing the airline in the management of international and internal transport, and its inability to face the increasing domestic demand for air transport, at the level of 36 airports present on the national territory.”

The decision to establish a new internal air transport company is due to several factors related to the inability of the Algerian Airlines to run the internal and external air transport sector at the same time, due to the large burdens, and the emergence of problems in that on the one hand, and on the other hand the government’s desire to operate a number of internal airports (36) unpaids well, to stimulate the air transport movement. However, other estimates consider that the last decision is related to a government perception to empty Algerian Airlines for foreign and international flights and prepare to raise the company’s presence in international airports, increase the lines that link Algeria to various countries and regions of the world, and to restore a large number of lines that had stopped decades ago, especially towards Africa, Eastern Europe and Asia.

It is possible that the decision to create a government company for internal air transport will be paved to open the way for private investment as well, after government attempts have previously failed, as it announced since the end of 2020, the preparation for the full liberation of the internal air transport sector in the country, and allowing the establishment of internal air transport companies, without the decision to implement.

Algerian Airlines and Tassili monopolize air transport activity in the Algerian interior, and the lack of competition for the public sector led to stagnation in the sector and bad services, and Algeria has retreated since 2006 from the experience of private companies that allowed it before, and the last private company is dismantled, which is the Caliph Company, due to corruption issues and many problems, although the movement of internal and external air transport has improved a lot in that period, due to competition from the private sector.

Last November, the Algerian Airlines announced the acquisition of 15 new aircraft, to include the company’s fleet to expand its flight lines to several regions and enhance the internal flight program to and from the countries and destinations in which the company operates, with the first plane to arrive in Algeria in June.