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Tunisair implements a crisis recovery plan as LCCs await an open skies agreement

Analysis

Tunisair, the national carrier of northern Africa's smallest country, is implementing a recovery plan which includes expanding its network in Europe and to sub Saharan Africa with the addition of seven new routes since Oct-2012 as the state-owned carrier takes delivery of a fleet of new aircraft.

The flag carrier has struggled to cope with the effects of the 2011 Arab Spring political uprising which devastated the Tunisian tourism industry, requiring Tunisair to implement a crisis restructuring plan to reduce costs and expand its network with more efficient fleet - also possibly locating a strategic partner to recapitalise the airline.

Passenger numbers have rebounded strongly in 2012 and early 2013, but Tunisair continues to survive only under government protection which holds European LCC entry at bay.

Talks on a comprehensive air services agreement with the EU appear to have made little progress and the lack of an agreement is holding back the nation's aviation sector as well as its tourism industry, a major economic driver.

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