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Asharq Al-Awsat
Asharq Al-Awsat
Business
Tunis - Mongi Saidani

Tunisia to Invest $130 Million in Air Transport

A general view shows Tunis-Carthage International Airport in Tunis, Tunisia, July 30, 2018. REUTERS/Zoubeir Souissi

Tunisian authorities are planning on announcing TND367 million ($131 million) worth of investments to expand three airports in the country.

Carthage International Airport in the capital Tunis is to get the lion’s share of around TND300 million ($100 million) so that it can handle around 8 million passengers a year.

The runways of Djerba - Zarzis International Airport in southeastern Tunisia and Tozeur - Nefta International Airport in the southwest are also set to be improved in 2020.

Flag carrier Tunisair has plans to improve its fleet by signing a final deal to buy five new Airbus A320 airplanes.

It is also expected to lease three planes pending the arrival of the new A320s.

The moves will allow Tunisair to expand the number of its passengers to 5 million.

The fleet of the flag carrier consists of 27 planes. It also has a workforce of around 8,000 employees.

The government has tried to cut the number of staff in an effort to limit economic the company's burdens. But labor unions have rejected efforts to restructure Tunisair.

The transportation sector contributes 7 percent of the country’s GDP and around 11.5 percent of total investments. It also brings revenues of around TND1.5 billion from hard currency.

But it suffers around TND4 billion in losses, which require urgent government plans for reforms and restructuring.

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