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(adsbygoogle = window.adsbygoogle || []).push({}); Aigle Azur struggles to repatriate €28mn from Algeria - Algeria latest news

Aigle Azur (ZI, Paris Orly) will be tight on cash during the months of February and March 2016 owing to difficulties in remitting just under EUR28 million (USD30.4 million) in revenue currently locked up in Algeria.

France's La Tribune newspaper says the funds accumulated with Banque d'Algérie over the three-year period prior to 2011 and include passenger service charges (which could not be repatriated to France under previous Algerian laws), fuel surcharges, and issued, but unused, tickets. Though an understanding has been reached between the carrier's management and the Algerian authorities, only partial disbursement has been secured including EUR2.8 million in December last year and EUR8 million in July of this year.

To compound matters, with the winter low season in full swing, Aigle Azur's shareholders - the GoFast group (51%) and China's HNA Group (49%) - have reportedly refused to step in thus putting the airline in a very precarious situation.

For its part, Air France (AF, Paris CDG) is also said to have funds awaiting repatriation albeit on lesser scale to its rival. The French Foreign Ministry has taken the matter up with their counterparts in the Algerian government although no tangible results have yet been seen.

The France-Algeria market plays a critical role in Aigle Azur's business with Algier, Oran,Constantine, Setif, and Bejaja among its top ten destinations. According to ch-aviation capacity analysis, Aigle Azur is the second most dominant carrier in the market controlling 32.93% behind Air Algérie (AH, Algier) with 51.21%.

Tag(s) : #Economy

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