Andrew Chuter/TRIPOLI

Libyan Arab Airlines will hold talks with Air Jamahiriya next year over a possible division of Libya's domestic market between the two carriers.

The Libyan Government lifted operating restrictions on Air Jamahiriya, formerly the Light Air Company, earlier this year, giving it permission to operate domestic and international scheduled and charter flights. Previously, the company had been restricted to operations with aircraft of fewer than 35 seats.

Its primary work has been in providing Libyan oilfield support services with de Havilland DHC-6 Twin Otters.

Recently appointed Libyan Arab chairman Sabri Abdallah says the discussions could result in his airline limiting its operations to aircraft with more than 100 seats, allowing Air Jamahiriya to serve domestic and regional destinations with smaller aircraft.

A decision on dividing the market is expected next year as part of a wider approval for a draft aviation plan being considered by the Tripoli Government.

Sabri, who, until taking over at Libyan Arab, was chairman of Air Jamahiriya and the architect of its expansion plan, says that one matter up for discussion is a possible deal for the national carrier to take a sizeable shareholding in the smaller airline. Both companies are state controlled.

Meftah Zaidan, the new chairman of Air Jamahiriya, hopes to build up domestic operations initially between the cities of Tripoli, Benghazi and Sabhah, and to run regional services into the Middle East, North Africa and the Mediterranean. However, Libyan Arab is likely to have its own ideas about domestic services and it is possible Air Jamahiriya will end up feeding the hubs from secondary airports such as Tobruk, Ghat and Sirte.

Libyan Arab reckons it could be two years before Air Jamahiriya starts scheduled operations, but Zaidan says services could begin next year if the company can use an aircraft destined for an oilfield contract it has under negotiation. If the deal is completed it plans to lease an 80-seater, such as the Fokker F28 or BAE Systems Avro RJ, to begin a regular oil field service from early next year.

Source: Flight International