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Europe’s LCCs are making a first entry in Algeria

Analysis

It is rare but it still exists: a market with virtually no LLC presence. Low-cost carriers have an approximate 0.8% share of scheduled seats flown to/from Algeria. Liberalisation of air transport is in its infancy across northern Africa, yet the absence of LCC services to Algeria falls short of the overall penetration of low-cost carriers in the region. LCCs have an approximate 18% capacity share (in terms of seats) on routes to/from north Africa, according to OAG data for the first nine months of 2012.

Algeria's situation contrasts sharply with the situation at its western neighbour Morocco where the no-frills segment conquered an approximate 35% capacity share in terms of seats deployed on international routes. Morocco has an Open Skies agreement with the European Union, and this explains the high market penetration of LCC on international routes, but Algeria's eastern neighbour Tunisia has no such ASA in place and LCCs still produce just 8% of seats flown to/from the country. Western Europe is the main market for these three north African countries.

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