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Home Business

Libya to launch a new state airliner – a regressive step into state ownership?

bySami Zaptia
December 4, 2024
Reading Time: 2 mins read
A A
GNU to take oath at Benghazi HoR session and budget to be approved at Tripoli session: GNU

(GNU).

The Tripoli based Libyan government reported that in a meeting held last Monday (2 December), the Tripoli based Libyan Prime Minister, Abd Alhamid Aldabaiba, followed up on the launch of a new airline aimed at addressing the current airline situation.

The meeting was attended by Minister of Transport Mohamed Al-Shahoubi, Minister of State for Communication and Political Affairs Walid Al-Lafi, Chairman of the Executive Team for President’s Initiatives and Strategic Projects Mustafa Al-Mana, and Chairman of Afriqiyah Airways Ahmed Al-Amin.

During the meeting, it was stressed that the launch of the new company comes within the framework of an advanced investment vision aimed at improving the competitiveness of the sector at the global level, in line with the government’s plan to develop airports in different cities.

During the meeting, the need to take additional steps to develop the local aviation sector was also stressed. No further details were revealed.

Comment and analysis
The Tripoli based Libyan government’s report on the above meeting was sparse in detail about this proposed new airliner.

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At a time when the Libyan government and state are short of money to pay for the most basic everyday needs and necessities, it gave no hint as to how or who would finance this venture.

The report notably mentioned that the Chairman of the state Afriqiyah Airways was present – but neither the Libyan Airlines nor the chairman of the Libyan African Aviation Holding Company (LAAHCO), were present. The state Holding Company owns both the state Afriqiyah Airways and Libyan Airlines.

Libya is still not the UAE or Qatar
While having a vibrant state-owned flag carrier operating at an international level on par with Emirates or Qatar Air to market ‘‘brand Libya’’ and attract tourists and investors is an attractive idea, Libya is still years away from that.

The Libyan state has billions of assets still frozen by UN Security Council sanction, struggles to pay state-sector salaries every month on time and there is still a bank liquidity crisis. The EU flight ban on Libyan registered carriers is still in place and most western nations advise their citizens not to travel to Libya.

Half of Libya is run by military strongman Khalifa Hafter and the country has failed to agree on a constitution and hold elections for a unified government that would rule the whole country.

Private sector v state sector?
Re-establishing a new state-owned carrier seems a regressive step. The assumption is that Libya, post the socialist welfare Qaddafi state era, would be looking to the private sector to lead in all its progressive sectors – including aviation. State owned and operated Libyan institutions have a long legacy of service failure and financial loss.

Both the two current state carriers, Afriqiyah and Libyan Airlines are struggling. The still-in place EU flight ban and the damage both carriers suffered to their aircraft during the 17 February revolution have added to their woes. Both carriers suffer from over-employment, with Libyan Airlines the worse of the two. They are both in debt and struggle to pay salaries. Many Libyan Airlines have not been paid for a year.

Aldabaiba has no political or moral mandate
It must therefore be asked if the current unelected prime minister and government have the political and moral mandate to commit the Libyan public’s oil money into such a venture. A venture which has not been discussed over several years by a functioning parliament, media and civil society to gain a needed consensus.

Tags: Abd Alhamid aldabaiba pm GNU Government of National UnityAfriqiyahairlines airliner carrieraviation air transportLibyan airlinesstate ownershipstate sector

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