Algeria’s new domestic airline set to take off

• Tapping local travel growth
• Air Algerie to own new venture
• Fleet expansion underway

Algeria is pushing ahead with plans to start a domestic airline to tap into a growing market for local air travel, the North African country’s transport minister said.

In comments reported by the local media, Said Sayoud told Algeria’s parliament this week that the national carrier Air Algerie – which will own the domestic airline – has agreed to buy 16 planes and lease eight others.

“Measures to establish a new domestic airline owned by Air Algerie will be finished shortly,” Sayoud is quoted as saying.

“This new company is part of the airline’s strategy to expand in the local and international markets and respond to growing business in Algeria, especially in the southern areas,” he said.

Sayoud said the airline will take delivery of the first of the 16 aircraft next month, with five more expected by year end. The aircraft are a mix of Boeing and Airbus.

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In 2023, Algeria’s state media reported that Air Algerie had signed an agreement with the state’s National Investment Fund (FNI) to finance fleet expansion plans.

FNI would assist the airline in acquiring eight narrow-body Boeing and seven wide-body Airbus aircraft, the media said at the time.

Traffic in North Africa has recovered beyond pre-pandemic levels. Air Algerie’s fleet expansion is expected to boost air traffic in the country by about 50 percent, the media reported.