Algeria’s flag carrier Air Algérie has entered into an agreement with the state’s National Investment Fund (FNI) to finance its fleet expansion plans, which incorporates acquiring 15 recent aircraft.
A signing ceremony of a credit agreement on treasury resources occurred between Air Algérie and the FNI on July 3. The financial partner will assist the airline in acquiring eight Boeing narrowbodies and 7 Airbus widebodies, with delivery expected to begin in 2025.
FNI’s primary purpose is to administer the loans granted from Treasury resources to public enterprises to finance major expansions and industrial projects. Although the quantity of funding Air Algérie would receive was not disclosed, the FNI’s investment credits can finance as much as 80% of the associated fee of a project.
Growing the air transport market
Along with boosting the airline’s capability, acquiring 15 recent aircraft will positively affect the Algerian air transport market. Traffic in North Africa has already recovered beyond pre-pandemic levels, and Air Algérie’s deal is anticipated to spice up air traffic within the country by about 50%.
Photo: Airbus
said Algeria’s Minister of Transport Youcef Chorfa to ObservAlgerie. Moreover, authorities answerable for launching various intra-continental routes need to make Algiers a serious African hub.
Narrowbody acquisition
Air Algérie’s turnaround strategy was first announced greater than three years ago, with an initial plan to amass as much as 30 aircraft by 2024. The airline currently has a fleet of 56 aircraft with a mean age of 15 years. It wants so as to add capability and modernize its fleet as a part of the general development strategy.
Photo: Boeing
The carrier has stuck with Boeing as its narrowbody selection, signing a cope with the American manufacturer in May for eight B737 MAX 9 aircraft. The jets can be delivered from 2027, helping to support its mission of adding routes to Europe and possibly sub-Saharan Africa. Air Algérie already operates numerous Boeing aircraft, with 31 737 NGs in its fleet.
Although the deal was announced in May, it was confirmed last month on the second day of the Paris Air Show. As regional passenger demand is anticipated to grow rapidly in the following five years, the brand new aircraft will provide much-needed capability.
Widebody selection
The Algerian carrier also goals to boost its fleet with seven widebody aircraft. Last month, the carrier signed a cope with Airbus to amass five A350-1000s and two A330neos. Air Algérie currently doesn’t have any Airbus or widebodies in its fleet.
Photo: Airbus
Delivery is anticipated to start in 2025, and the airline will take full advantage of the flexibility of the Airbus fleet by deploying it on its various intra-Africa and intercontinental routes. The deal was also probably the most significant contracts to be signed between the French manufacturer and an African carrier.
The A350-1000 is probably the most advanced passenger aircraft in service worldwide, with advanced fuel efficiency and prolonged range. By investing on this model, Air Algérie will increase its capability while reducing carbon emissions.
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Source: ObservAlgerie