19-Jul-2013 1:51 PM

Tunisair develops turnaround strategy calling for increased state finance: report

Tunisair reportedly developed a turnaround strategy, with the following highlights, according to a report by Aerotunisie.com:

  • The advance of TND300 million (USD180.6 million) from the Tunisian state for the sale of two presidential aircraft;
  • The recovery of TND42 million (USD25.3 million) in VAT from the Ministry of Finance;
  • The abandonment of TND180 million (USD108.3 million) in unpaid debts to the Tunisian Civil Aviation and Airports Authority;
  • The establishment of a 10% fuel subsidy, estimated to cost the state TND50 million (USD30.1 million) p/a;
  • Payment by the Tunisian state of operating expenses for the presidential aircraft for 10 years, estimated at TND55 million (USD33.1 million);
  • An increase in working capital from TND100 million (USD60.2 million) to TND180 million (USD108.3 million);
  • Payment of up to TND25 million (USD15.1 million) in compensation for the laying off of 1700 employees.