Algeria – The draft Finance Act 2019 provides, in its first draft, provides more benefits to airlines transporting passengers and goods under Algerian law.
Article 41 of this PLF, of which ALG24 holds a copy, provides for exempting Algerian airlines from paying the customs duty when sending a motor for repair abroad. This benefit is intended for Algerian passenger and goods airlines and their subsidiaries engaged in air transport activities.
The government explains this advantage by the fact that Algerian airlines suffer from a deficit due to the application of "low" prices on one side and the sharp rise in external charges, including the maintenance and repairing aircraft
For the government, subjecting engines sent abroad for repair to the customs tariff is an important burden, especially since the cost of repair is high. Especially that engine shipments for repair is very common.
This customs law, the government estimates, impacts the financial reserves of an already fragile airline, which weakens its competitive and profitability performance.