Air Algerie fleet renewal takes off

21 November 2003
National flag carrier Air Algeriehas awarded contracts worth a total of $650 million for the supply of aircraft as part of its passenger fleet renewal programme. The agreements cover 11 of the 17 aircraft the airline plans to purchase by 2004.

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).

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