Europe's Airbus and BoeingCompanyof the US shared the order for the larger aircraft. Airbus has been awarded a contract to supply five 250-seat A330s and Boeing will provide three new-generation 737s. ATRof France won a contract to supply three smaller50-70-seat aircraft for use on internal flights. Canada's Bombardier Transportationand Brazil's Embraeralso submitted bids for their supply. Air Algerie is planning to buy a further six smaller aircraft.

All the aircraft are scheduled for delivery in 2004. About 80 per cent of the financing will come from export credits.

Air Algerie first announced a fleet renewal programme in the late 1990s, spurred by increasing operating costs and regulatory restrictions. In 2000-02, the carrier took delivery of 12 Boeing 737s. The government plans to privatise Air Algerie and appointed the US' Booz Allen & Hamiltonin 2001 as consultant on the sale of a 49 per cent stake (MEED 16:5:03).