Qatar Airways will buy the Algerian airline Al Dhahs air force for an initial investment of US$1.3 billion.
Al Dhahiris aircraft will be built in Qatar with Airbus, Boeing and Bombardier, according to the Gulf state’s state news agency, Al Arabiya.
The deal has been approved by the Qatar Investment Authority and signed by the Algerians prime minister and state secretary, the state news agencies Al Arabiyya and Qatar News Agency reported.
Qatar’s state-run media has also reported that Qatar Airways had raised the price of Al Dhahlirah’s ticket prices to US$80 from US$60.
Al Jazeera’s Alba Kamal, reporting from the airport in Doha, said the purchase of Al Dahirias air fleet by Qatar was “a big step” for the Algerias prime minister, Ali Al Hamad.
“We are very pleased about this deal, and we have asked Al Dhhalis government to do this for our benefit,” Kamal said.
“Al Dhhalas government said that it is not yet ready to make the deal official, but it is looking forward to it.”
Al Dhaha’s air fleet is currently operated by Al Doha Airways, and it is also owned by Qatar Airways.
In January 2018, Qatar Airways announced that it was purchasing Al Dhaha to help expand its domestic operations.
Al Dhahi’s owners, the Qatari state-owned airline Qatari Airways, have long faced criticism for the company’s treatment of staff.
Qatar Airways said in January 2018 that it had reached an agreement with its employees to improve their working conditions.
The company said in the statement that it planned to offer a 10 per cent bonus to all employees who take part in Qatari government-sponsored activities in the country.
Al Dahaha was also involved in a long-running dispute with Qatar over its refusal to pay for the purchase.
The Algerian state-controlled media has previously said that Qatar has been “forced to pay a significant price for Al Dhaliha’s alleged treatment of its workers”.