Air Algérie to adopt holding company model
Air Algérie is restructuring into a holding company, CEO Hamza Benhamouda has confirmed. The reform includes spinning off the maintenance department into an independent subsidiary and creating a tourism services unit. Two new entities – Air Algérie Ground Operation and the Aviation Academy – are due to start in January 2026, with the changes aimed at improving operational efficiency and securing tax advantages under the new legal status.
The overhaul is backed by increased state funding and fleet expansion. Government subsidies for 2026 are set at nearly DZD 20 billion (about USD 154 million), up from DZD 12.6 billion in 2025, while the airline plans to acquire around 18 aircraft and has already taken delivery of an Airbus A330‑900neo on 13 November 2025 for long‑haul operations. The moves come amid rising regional competition from Royal Air Maroc, EgyptAir, Ethiopian Airlines and Gulf long‑haul low‑cost carriers, as Algeria seeks to position Algiers as a transit hub between Europe, sub‑Saharan Africa and Asia.
Source: Ecofin Agency