in Air Transport

Air Algérie caps hirings as foreign competition hits revenue

Posted 27 November 2017 · Add Comment

Air Algérie President and Chief Executive Officer, Allache Bakhouche, has called on the airline's workforce to come together and assist management in its efforts to contain rising costs, reports ch-aviation.

Last month, the CEO highlighted that the state-owned airline had seen a serious decline in sales for the first nine months of the year but declined to give an exact figure.

However, according to the TSA news agency, Bakhouche painted a grim picture to staff in an open letter dated November 19. In it he said Air Algérie finds itself in a "very difficult situation" marked by negative financials caused by, among other factors, increasing costs, direct and indirect competition which has impacted revenue inflows, an overstaffing in unproductive roles, constraints of expensive public service, and a heavy debt overhang.

"In this context, and concerned with the preservation of jobs and the national economic plan, I appeal to the conscience and responsibility of all: workers, managers and unions, for an effective mobilization towards containing everyday costs," he said adding that "no economization, however small, can be neglected."

"The payroll, being a major component of our operating expenses, and its maintenance at current levels, seems to me to be an absolute necessity to try to curb our expenses and the decline in our operating results," he continues.

Bakhouche said that while there would be no lay-offs, there would not be any new hirings either.

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