Air Algerie financing procedure for the purchase of new aircraft

Air Algérie: financing procedure for the purchase of new aircraft announced ObservAlgerie

After signing contracts with Boeing and Airbus for the acquisition of new aircraft last May, the national airline Air Algérie signed an agreement with the National Investment Fund on Monday 3 July to finance the purchase of these machines.

The national airline has received the go-ahead from the state to purchase 15 new aircraft1. Last May, Air Algérie signed contracts with Boeing2 and Airbus3 for the acquisition of these new aircraft. This operation is part of a plan to expand and modernize the Algerian company’s fleet, which aims to improve the quality of its services and conquer new markets, particularly in Africa.

The American aircraft manufacturer Boeing will supply Air Algérie with 8 B737-9 Max (170-210 seats) medium aircraft carriers, the first aircraft of which will be delivered in 2027. The European manufacturer Airbus, in turn, will supply Air Algérie with 7 wide-bodied aircraft, including 5 of the A330-900 type (280-320 seat module) and 2 of the A350-1000 type (350-450 seat module). Four of these new Airbus aircraft will be delivered in 2025, with the others scheduled for delivery in 2026.

Purchase of 15 new aircraft: Air Algérie signs a loan agreement with the FNI

To finance the purchase of these new aircraft, Air Algérie has decided to use a state financial partner. In fact, on Monday, July 3, the national carrier signed a loan agreement with the National Investment Fund (FNI). This was announced in a press release.

The FNI will therefore finance the acquisition of the 15 new aircraft that Air Algérie has ordered from Boeing and Airbus. “The signing ceremony of a treasury resource loan agreement between the National Investment Fund and the national airline Air Algérie for the financing of the Air Algérie fleet renewal project through the acquisition of fifteen aircraft (eight mid-size Boeing aircraft and seven large Airbus aircraft) took place ) ‘ states the FNI in a press release, without specifying the terms of the agreement or the amount of funding.

The FNI is a public financial institution whose mission is to support the financing of investments by providing loans to companies or by making equity investments in partnership with local companies or foreign investors to achieve national development goals. The FNI also participates in the capital of several companies, including Cosider, Renault Algérie, Djezzy and AXA Assurance Algérie.