Algerian Air and Maritime Transport Companies Facing Specter Of Bankruptcy!

The Algerian Airlines and the National Corporation for Maritime Transport for Passengers, due to the suspension of their air flights and sea crossings since March 17th due to the emerging Corona virus, are facing a scathing financial situation that will increase in severity by the end of 2020, reaching 500 billion centimes for maritime transport and 3500 billion centimes for Algerian airways.

Despite the gradual return of life in Algeria after more than 5 months of lockdown due to the Covid-19 pandemic, the Algerian authorities have not yet decided to open the air and sea space up to the present time, which has caused the national airlines and maritime transport companies to suffer great financial losses.

Ahcène Grairia, president and director general of the National Company for Maritime Transport for Travelers, confirmed to “Echorouk”, Sunday, that the company is living in a tight financial situation after canceling 282 cruises to France and Spain, between March 18 and July 31, distributed as follows: 163 cruises between Algeria And France, 115 between Algeria and Spain, and 4 between Algeria and Italy, and about 20 sea crossings were canceled during the month of August, explaining that the national maritime company is currently experiencing material problems, especially with regard to paying workers’ wages.

The financial losses incurred by the National Company for Maritime Transport for Travelers, according to its CEO, amounted to 330 billion centimes, from March 17 to July 31, and the losses will continue if the passenger ships do not return to their normal activities, and he said, “We are waiting for the instructions of the Algerian authorities in this regard”.

For his part, Allèche Bakhouche, President and Director General of Algerian Airlines, “Air Algérie” confirmed to Echorouk, “that Algerian flights will remain suspended until new orders are issued from the country’s higher authorities regarding the opening of airspace, and that the flights organized since the beginning of the Corona pandemic have been designated and aimed at evacuating the Algerians stranded in various countries of the world”.

In terms of figures, the Algerian Airline company’s losses jump from 16.31 billion dinars recorded in April to 35 billion dinars by the end of this year, according to what was stated by this Minister of Finance Aymen Benabderahmane on the one hand, and on the other hand, the continuation of the status quo and the rapid spread of the Covid 19 virus.

The Algerian Airline company will incur losses amounting to billions of dinars, especially since the latter is experiencing a major financial crisis, in addition to a claim by international bodies for dues from the company and customers’ complaints about high ticket prices, which made the government agree in 2018 to lend it 2 billion dollars stemming from the National Investment Fund to save the company from the specter of bankruptcy.

60 percent of this total amount will be destined to the renewal of the aviation fleet.