Air Algerie Eyeing African Tie-Ups - CEO

April 29, 2008

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Algeria's national airline Air Algerie is considering tie-ups with several African airlines either by way of equity stakes, alliances or cost-sharing, its chief executive said on Tuesday.

Abdelwahid Bouabdallah, CEO of the state-owned company, said that the region of most interest to Air Algerie was West Africa.

"We would like to start by either taking a share in the capital, doing alliances under which we would share markets, or doing cost sharing," he said.

The cost-sharing model of partnership involves airlines sharing assets such as sales offices, dedicated passenger lounges or ground staff.

Air Algerie's main overseas routes are to Europe and the Middle East, but it has seen increasing demand in Africa. Its African destinations are all in West Africa.

Its fleet includes 31 passenger aircraft and two cargo planes, its web site says. The airline, founded in 1947, flies a mixture of Boeing and Airbus planes. Its 2005 turnover was 48.7 billion dinars (USD$764 million), the site says.

Main competition on external flights comes from Air France KLM, Aigle Azur and British Airways.

(Reuters)