Tunisia to restructure debt-crippled national carrier

Tunisia’s Transport ministry, representative of the State in the national carrier TunisAir, announced Wednesday August 9 plans to restructure the country’s flagship carrier hit by debts amounting to hundreds of millions of euros.

Rabie El Majidi head of the department made the announcement in the presence of several officials, including TunisAir Chief Executive Officer, Khaled Chelly.

The airline has been in financial distress for several years. The appointment of Chelly in February 2021 to bring back the company to profit has been not efficient. The airline, according to 2021 figures, presented by former Transport minister Moez Chakchouk was suffering a deficit of 530 million euros.

The company owed Turkish airport operator TAV Airports about $10 million. The Turkish operator threatened in 2021 to seize the carrier’s assets. In March of the same year, it signed with the Civil Aviation and Airport Authority (OACA) and Turkish airport operator TAV Airports a debt settlement agreement.

The carrier, when Chelly was appointed CEO, reported eight aircrafts as the size of its fleet, but it has since acquired at least four new aircrafts, A320neos, in form of lease contract.