Monday 24 February 2025 
✏️ BY: Dr. Hana Saada
Algiers, Algeria | June 3rd, 2024 — Hamza Benhamouda, CEO of Air Algérie, disclosed detailed plans for the development and future ambitions of the airline in an exclusive interview with “EchoroukOnline.” Benhamouda highlighted several key points, including the successful sales of the “Osra” summer offer launched by Air Algérie at the end of April. Within one month, sales surpassed a quarter of a million seats.
Acquisition and Fleet Renewal
Benhamouda discussed the forthcoming acquisition of 15 new aircraft, with deliveries set to begin in 2025. This is part of a broader strategy to continue the airline’s fleet renewal program, potentially expanding to 20 new aircraft in the future. This move is aimed at modernizing the fleet, reducing operational and maintenance costs, and enhancing service quality.
New York Route and Additional Capacity
The CEO also mentioned that the launch of a new route between Algiers and New York remains under consideration. Measures taken to lease aircraft during the summer and Hajj seasons resulted in an additional 471,000 seats, addressing the high demand during peak travel periods.
Workforce and Infrastructure Improvements
Benhamouda emphasized the ongoing workshops focused on revising collective agreements, work systems, and protocols for the airline’s crews. He stressed the importance of improving services and developing the company’s infrastructure to meet future goals. He reiterated that “the doors are always open for employees and social partners at Air Algérie.”
Question: After three months of your appointment as CEO, how do you evaluate the status of Air Algérie?
Answer: Air Algérie has embarked on a significant initiative to elevate its performance to meet current challenges. We are working daily to address problems and imbalances. We are not managing a stable situation but are striving as a team to transform this national company, which serves as Algeria’s global passport and a symbol of our civil sovereignty, into a landmark of international competitiveness.
We have substantial work ahead to align the company with customer expectations, the directives of high authorities, and the aspirations of our employees. Our goal is to make Air Algérie an effective and competitive player in the face of significant global transformations.
Q: What is the work program you have outlined for this purpose?
A: Since assuming my duties in February, we have outlined a work program with goals tied to the company’s future, spanning short, medium, and long terms, with initial benefits becoming apparent now and extending through 2040. Implementing new reforms may take longer than desired due to the procedures accompanying the execution process. Significant changes in certain areas may take at least five years; for instance, renewing the fleet to improve service requires several years. Acquiring a single new aircraft involves placing an order with leading international manufacturers and waiting in line amid high global demand from other competing airlines.
I commend the strategic direction taken by the high authorities and acknowledge the efforts of my predecessors at Air Algérie, who placed orders for 15 new aircraft. I am personally and closely following up on this matter. We face pressure, for example, in procuring aircraft spare parts for maintenance due to high global demand. Despite this, we remain in control of the situation.
In summary, our plan at Air Algérie is based on deep goals and reforms aimed at improving the company’s services to meet global acceptable standards, enhancing the company’s economic and competitive performance, and maintaining its values as a public citizen company. This can only be achieved through improving service quality, developing competitive capabilities, and increasing revenues in an international environment that evolves faster day by day.
Q: Can you provide more details about the company’s work plan?
A: The plan is being realized according to a sustainable blueprint that serves the company’s future and remains unaffected by changes in personnel or circumstances. It is a dynamic process that combines prudent management with a clear vision and diligent employees dedicated to their country and institution, regardless of the challenges and transformations they face. The plan consists of three initial, medium, and long-term phases, all linked to the scale of the challenges.
Currently, we are addressing well-known issues from an organizational and technical perspective, focusing on performance levels and eliminating delays. Simultaneously, we are working on improving the quality of our services, with flight safety being our top priority and a key criterion for airline classification. Since taking on my responsibilities, I have met with the maintenance department, provided all necessary resources, and emphatically insisted on making this department operate at the highest level to offer the best safety conditions for our valued customers. I would like to highlight that this department is performing effectively and excellently. Notably, Air Algérie has the best maintenance capabilities in Africa, servicing not only its own fleet but also the aircraft of international airlines landing at Algerian airports and providing comprehensive maintenance for aircraft from friendly African countries.
We are also working on enhancing service quality at check-in, collaborating with Algiers Airport – Houari Boumediene to automate check-in for passengers without luggage to streamline their travel process. Additionally, we are improving boarding conditions and hospitality, focusing on all aspects that can make the travel experience enjoyable for our esteemed customers. Moreover, we are strengthening the company’s position in the Algerian market and developing domestic routes, especially to southern provinces, which are a top priority for the national authorities and one of my main concerns. In this regard, we have added 68 new flights, 44 of which are to southern provinces. Whenever circumstances and resources permit, we will continue to enhance this aspect. This initiative is not merely a transportation effort but a commitment that the Algerian state has been developing periodically since independence, aiming to connect various regions, break isolation, promote sustainable development, and improve the company’s service to our national community abroad, which the Algerian state prioritizes to strengthen their connection with the homeland.
Q: What does the medium- and long-term strategy include?
A: Medium-term strategy:
1. Modernizing Company Operations: Update the performance of all company departments to work in complete harmony and enhance the efficiency of their operational processes according to their assigned tasks.
2. Employee Engagement: Involve all employees in the governance strategy, fostering the desired transformation and addressing the challenges ahead.
3. Shift in Management Approach: Transition from micro-management to macro-management.
4. Company Restructuring: Develop a plan to modernize and restructure the company in coordination with relevant authorities, employees, and unions, ensuring the changes are consensual and effective both in vision and application.
5. Expanding Routes: Address the major challenges and goals of our country, both domestically and internationally, by expanding routes locally, regionally, within Africa, and globally.
6. Commercial Vision Redirection: Refocus the company’s commercial vision to align with these goals and challenges.
Long-term vision:
1. Fleet Modernization and Expansion: Continuously update and expand the fleet of aircraft.
2. Overall Performance Improvement: Enhance the overall performance of the company.
3. Competitive Advancement: Achieve significant progress in Air Algérie’s ranking across all criteria, initially competing with regional airlines and subsequently with global airlines.
Q: Two Years Since the End of the COVID-19 Pandemic: Has Air Algérie Recovered its Full Capacity, and What was the Impact of the Pandemic on the Company?
A: It is well-known that the COVID-19 pandemic had a significant and severe impact on nearly all civil aviation companies worldwide. Many were forced into an operational and technical hiatus for two years and only gradually resumed their activities after substantial losses. Even today, two years after the pandemic was declared over, many leading global airlines have not yet returned to their full operational capacity.
For Air Algérie, the situation was somewhat different. Despite the substantial financial losses incurred during that period, the company, due to its national duty and the obligation to serve Algerian customers, resumed operations from the very first day the pandemic was declared over. The various teams undertook enormous and strenuous efforts to restart operations after a two-year hiatus. This had an impact on service quality, weakening it in certain areas. The aircraft required more extensive maintenance and updates to ensure they were free from technical issues. We are currently working diligently to address these needs according to a well-structured plan to overcome the lingering effects of the pandemic.
Despite this, we are gradually returning to normal operating levels and facing higher demand than before the pandemic. In 2019, Air Algérie recorded approximately 7 million passengers. In 2023, the airline transported around 7.2 million passengers, an increase of 200,000 over pre-COVID-19 levels. The company is continuously working to resume all previously operated routes or those planned according to available capabilities, feasible strategies, and economic viability, which sometimes necessitates decisions on certain international routes.
The pandemic affected the company just as it did other global airlines. Today, we are working to correct what can be corrected and repair the negative impacts left behind. I would like to highlight that in the first four months of this year, the company transported 2,361,189 passengers out of the 3,221,456 available seats during the same period. This demonstrates that the company’s current capacity can transport up to 9,664,368 seats annually. Our capabilities will increase further with the receipt of the first batch of new aircraft at the beginning of 2025. Additionally, these numbers are supported by aircraft that are currently being leased.
Q: Where does the compensation process for COVID-19 affected customers currently stand?
A: In terms of compensating our customers, we took significant measures on March 26, 2024, to address the needs of all affected customers. To date, we have successfully compensated 44,808 customers. The process is ongoing, and we are committed to closing this matter completely by the end of the current year.
Q: How was the response to the promotional offers, such as those for Ramadan, Eid, and summer “Family” or “Osra” packages?
A: The response was excellent and very strong, particularly for the “Osra” package. We offered these promotional fares both in our agencies and online, and the overwhelming response from customers, both domestically and internationally, was remarkable. This initiative reflects our commitment to facilitating travel for our citizens, residents, and diaspora to spend holidays in their chosen destinations, whether they are residents in Algeria or members of the Algerian diaspora. We aim to make these experiences accessible with minimal cost, aligning with our commitment as a national company.
Q: Can you provide some numbers regarding bookings for the “Osra” packages?
A: Certainly. The offer was launched initially as a continuous promotion until August 31, 2024, allowing travelers to book flights with us until September 30, 2024. As of the end of May, we recorded an initial figure of 289,016 seats booked, a number expected to increase over the remaining three months. When the offer was launched on April 22, all available seats, totaling 1,160,000, were offered for sale across France’s network on all scheduled flights for the peak season, without any restrictions. Currently, there is still a substantial inventory of 571,600 unbooked seats on the same network for dates that may not align with our customers’ preferences. In summary, this competitive and reasonable offer remains available, albeit for dates that may not be highly preferred by customers. Additionally, we have taken necessary steps with the relevant authorities in the countries of interest, those with the highest demand, to secure additional flight permits.
Q: What are the company’s plans and anticipated services to handle the Hajj season, particularly the return of pilgrims?
A: Regarding the Hajj file, Air Algérie will transport 20,303 pilgrims out of a total of 45,000 Algerian pilgrims this year. We have diligently overseen the reservation process for our loyal pilgrims’ tickets through coordination with the National Office of Pilgrimage and Umrah. We have also provided all necessary facilitation for their travel and return under the best required conditions. We are closely monitoring every detail in this matter to ensure the success of the Hajj season in accordance with the recommendations of the highest authorities. We are preparing to welcome them starting from the first return flight on June 20th, providing all necessary conditions for this. Our aircraft are ready to lead the return journey with the same dedication as the outbound journey, ensuring the provision of the best and most necessary services. I would like to emphasize that there may be some circumstances and challenges that we may encounter, but we will address them with utmost commitment and professionalism.
Q: What about the measures to facilitate the return of expatriates this summer, especially in France, which is home to the largest percentage of Algerian immigrants? Can you provide us with some details?
A: As for the Algerian diaspora abroad, the government program is clear, and we are committed to implementing it. The diaspora is given great importance to return to the homeland under the best conditions and in accordance with the recommendations of the highest authorities. During the blessed month of Ramadan, travel tickets were provided at half price, with a total of over 84,000 tickets, including more than 50,000 tickets in France, where most of our national diaspora is concentrated. Furthermore, as mentioned earlier, we provided special facilitations for the return of Algerians during Eid al-Fitr at preferential prices. However, the most significant initiative was the “Osra” offer, through which we provided the Algerian diaspora abroad and Algerians residing in the country with the opportunity to spend their holidays in Algeria, as well as the possibility of traveling abroad for holidays for residents in Algeria under the best conditions.
Q: Previously, there was an announcement about acquiring 15 new aircraft. Is the deal still ongoing?
A: Yes, the deal is ongoing, and it represents a strategic vision aimed at enhancing and strengthening the performance of Air Algérie, especially considering the significant emphasis on making the company a regional and global player to meet the challenges and aspirations of Algeria in growth and development. We aim to achieve a leading role and vital position as a developing African nation, responding to the aspirations of our valued customers by providing modern and high-quality services. Generally, we will begin receiving these aircraft starting from the year 2025. In the long term, to meet our aspirations and establish our position in Africa, we aim to add another 20 aircraft to our fleet. We will need a much larger number of aircraft, but it is still too early to provide precise details. We will focus on the quality and safety of the vehicles we receive, and we will attach great importance to the training of flight crews. We will work with reputable global aircraft manufacturers with high capabilities.
Q: What about aircraft leasing deals for the summer and Hajj seasons? Can you provide us with some details about them?
A: Air Algérie has leased three large-sized aircraft, each with 269 seats, and one aircraft with 150 seats, allowing for the provision of 471,000 seats during the leasing period. This is to ensure comfortable transportation for our customers and to meet the high demand during this time of the year.
Q: Are you preparing to open new international routes? What are the targeted destinations?
A: We are working on developing our domestic and international network, aiming to ensure the sustainability of our routes. This effort is not a temporary vision but a sustainable approach to fulfill our commitment to our country’s strategic directions and to ensure the continuity of service to our valued customers. Therefore, the launch and opening of new routes, including the New York route, are processes currently underway. We hope that these operations will be carried out effectively and sustainably in the foreseeable future.
Q: Why did Air Algérie recently freeze some international routes?
A: Some routes have indeed been suspended due to issues related to aircraft availability. Therefore, we were compelled to make decisions while considering the preservation of traditional and commercially viable destinations. However, most of the suspended routes will be rescheduled during the summer season.
Q: Upon your appointment, you met with most of the company’s unions. What were the outcomes of these meetings?
A: As part of my commitment and responsibilities, I firmly believe in the importance of dialogue with the unions and the significance of each employee within the company. We consider every worker a part of our family, and we believe that reviewing wages and improving the social situation of these workers is linked to opening negotiations with various social partners, taking into account the financial capabilities of the company along with all these aspects.
Since taking office, I have initiated consultations and meetings with all unions from various levels and affiliations. We scheduled tripartite meetings with the concerned parties to be closer to the workers. Additionally, we scheduled regular meetings between different departments and unions related to them, such as meetings between maintenance department officials and aircraft technicians’ unions, for example. Furthermore, I directed monthly meetings between various unions and departments to enhance bilateral communication, listen to mutual concerns, and seek to bridge perspectives and dynamically resolve raised issues to strengthen the stability and growth of the institution. Moreover, we launched workshops to review the collective agreement, work system, and protocols for our workforce. We are working until next year to achieve a better transformation in the social situation and professional performance of our dear employees.
Q: In line with the directives of the higher authorities, what is your plan for digitalization and customer communication services?
A: Regarding digitalization, Air Algérie was one of the first economic companies in the Algerian market to adopt online ticket sales and marketing back in 2006, at a time when Algerians were witnessing the beginning of the internet era. By 2010, we were already selling tickets online internationally. Today, 20% of our sales are made online, and we aspire to double this figure in the upcoming period. We are committed to modernizing and digitizing all our services in line with the current government plan and the broader directions of the Algerian state to enable digital governance and statistics to play their economic and strategic roles, and to enhance the quality of public services, including air transport, in which we play a significant role. Currently, we are pursuing various projects to upgrade our digital and communication capabilities.
Moving forward, the company is keen on enhancing its level of communication with its valued customers. We have practically begun implementing the final touches to operate a call center 24/7, previously operating from 8 am to 8 pm, and we will reinforce the center with qualified human resources to ensure night coverage. We have also initiated the initial trials to introduce a toll-free number, 3302, instead of the current landline number. This toll-free number will become operational in the coming days after a trial period this month. Additionally, trials are underway to provide a toll-free line for our pilgrims and their families to inquire about any issues they encounter during their journey to and from the holy sites. This toll-free number will be operational throughout the year from the sisterly Kingdom of Saudi Arabia for pilgrims. Furthermore, we are assessing the feasibility of opening communication lines with all countries where we operate two flights per week to effectively and satisfactorily communicate with our valued customers.
Q: Finally, regarding the possibility of reviewing ticket prices in the future, what are your thoughts?
A: Yes, we have formed a committee to study the possibility of ticket price revisions for some time now. This is to assess the situation based on the costs incurred by the company, available opportunities, and economic feasibility. Regarding ticket prices between France and Algeria, which are sometimes described as high and may reach 800 euros, it’s worth noting that this ticket often corresponds to the highest price level on this route for a round trip ticket, which is valid for one year and is refundable, exchangeable, and amendable without fees or conditions. You can verify this on our website. Today, airline prices are not fixed and are subject to dynamic management heavily influenced by competition, timing, and aircraft occupancy. Their level also depends on other factors, especially the customer’s personal preferences regarding travel dates and ticket purchase. The price of a ticket purchased in January can vary significantly from one purchased in July or August, and this is applicable to all airlines worldwide.
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