The vision of the president and chief executive of Air Algérie as a profitable and privatised airline may seem more like a Saharan mirage in a country riven by a bloody, religious conflict. But Faycal Kellil's actions certainly prove he is serious.
The government-owned airline became a joint stock company in mid-February and with that came the promise of autonomy from the government along with a title change for Kellil, formerly the carrier's director general. At the same time, he announced a restructuring plan aimed at pushing the carrier to breakeven this year, after nine years of losses. Kellil says last year will show an improvement on losses of US$37.7 million in 1995.
The airline now faces the problem of attracting potential investors in an unstable political climate. 'Who's going to invest in Algeria today?' asks Iata's African regional director Sassy N'Diaye, suggesting that political sensitivities will deter airlines like Royal Air Maroc and Air France from investing.
Indeed, Kellil is keen to stress that before looking abroad, he first hopes to find domestic investors to provide 'finance and know-how' for Air Algérie's secondary activities - oil charter, cargo, distribution, catering services and regional operations - which are being transferred into subsidiaries.
Kellil will also focus on labour productivity, aiming for a 3 to 10 per cent increase in efficiency. In addressing the key issue of replacing the carrier's ageing fleet of 11 B727-200s, Kellil will look at various options, including leasing, chartering, and using future partners' aircraft.
Despite Algeria's problems, the carrier does have a 'strong domestic and regional market' to fall back on, says N'Diaye.
Source: Airline Business
