Air Algérie Seeks Overhaul to Compete in African and International Markets

– byJérôme · 1 min read
Air Algérie Seeks Overhaul to Compete in African and International Markets

Air Algérie is struggling, notes the Algerian president. As a solution, Abdelmadjid Tebboune wants a change in the management of the company, in order to make it competitive internationally, particularly vis-à-vis Royal Air Maroc.

According to the CEO of Air Algérie, Bakhouche Allèche, for years, Air Algérie has been burdened by an overstaffed workforce while its market share is close to 52%. Hence its restructuring to hope to face competition, reports Elwatan.

As a result, the Algerian president is opting for an airport hub in Algeria in Tamanrasset in partnership with specialists and experts in order to access the African market and also open new routes to the Americas and Africa.

But the Algerian company, still subscribed to the outdated "point-to-point" traffic, is facing about twenty foreign companies, grouped into correspondence platforms (hubs), in order to determine passenger flows. Facing Air Algérie are already strong competitors with a dense network in Africa; Ethiopian Airlines, the first African airline and Royal Air Maroc (RAM) which does not hide its important ambitions.

For the Algerian president, the company’s take-off plan also involves the creation of special companies and the reopening of domestic airports, closed as part of the development of tourism; it is a choice that will mitigate the isolation of the High Plateaus and the isolation of the South, indicates the same source.