Air Algérie Concerned About The Dinars' Collapse

General Manager of Air Algérie, Mohamed Abdou Bouderbala, is expected to receive, within weeks, the financial report of the Company for the year 2015, and which preliminary figures that were prepared by the governor of accounts that it is not satisfactory, because it registered a deficit compared with what was expected, as a result of the sharp decline in the national currency, the dinar, over the past year, and which noticed a historical collapse for the first time since independence, with the knowledge that the company’s revenues are calculated in dinars and its expenses in dollars.

Sources from “Air Algérie” told Echorouk that the process of determining the financial envelope for the acquisition of planes is done in US dollar currency, at the time the company’s revenues from the sale of tickets and organize flights is done in dinars, which caused a financial rift between expenses and revenues over the past year, and the profits decline in 2015.

A negative outcome that the current General Manager, Mohamed Bouderbala, inherited from its predecessors at the head of the company “Air Algérie”, which could postpone consultations with syndicates and social partners, including the pilots to a later notice, as they are still demanding, since years ago, for wage increases.

Same source added that the financial envelopes are allocated to a number of projects at the level of Air Algérie, including the acquisition of new planes to modernize the fleet, and even for the re-division of the branches, as these financial reports were prepared since five years ago, at a time when the value of the dinar noticed a significant drop compared with what was monitored in the financial allocations, which caused a clear rift.

Air Algérie has completed the restructuring process, to turn to the completion of a complex, comprising four branches, as the technical branch is expected to be launched by the beginning of the next July, and the branch of Ground Operations in January 2017, a project that was announced by since 5 years ago.

Separately, the company got rid of the heavy pressure that was suffering, through renting two Indonesian planes, and borrowing to planes from the company “Tassili”, which ensures Ramadan flights, and even a safe summer that coincide with the Hajj and Umrah seasons, without any delays or overcrowding in programs and flights.