Algeria-France: Air Algérie eyes acquisition of bankrupted Aigle Azur
A source from the state-owned airline told local media TSA that management is keen to acquire its rival and its installations in France where it operates from.
The intentions have been confirmed by the airline CEO, Bekhouche Allache who told the media that they have funds to buy sluggish airline, and only wait for the Algerian state to decide.
Aigle Azur, a French airline last week grounded all aircraft and left its passengers stranded in several airports. Last week, Aigle Azur was put under a court-ordered restructuring after it filed bankruptcy last month.
The troubled airline operates flights from six Algerian airports and employs 350 people in Algeria. Controlling 28 per cent of all flights between France and Algeria, Aigle Azur is Air Algérie’s main rival for the transportation of passengers between the EU country and its former colony. It is also key for the number of flights it operates from its hub. It runs 12 flights daily from Orly Airport.
French authorities last week announced as they seek a new owner of the airline that bids must be submitted at the latest Monday September 9 mid-day.
Air Algérie will face though rivalry in its quest to acquire its rival. France’s Air France has reportedly stepped forward acquisition plans. A market trader reportedly told Reuters that the French government is likely pushing Air France to get involved.