Syphax Airlines (FS, Sfax Thyna International (SFA)) is planning to use its IPO, due later this year, as a means of raising much needed capital to help support the airline's ambitious regional and international expansion plans, company CEO, Mohamed Frikha, has said. With 45.45% of the company up for grabs, Mr Frikha said that the investment was driven by rising confidence in Tunisia's rebounding economy. Once enough capital is raised, the Tunisian carrier plans to launch three weekly flights to the UK departing from Tunis Carthage International (TUN) and Sfax Thyna International (SFA), a daily flight to Italy and an "almost" daily flight to Germany, taking it head to head with local rival, Tunisair (TU, Tunis Carthage International (TUN)). Twice weekly flights to Jeddah King Abdul Aziz (JED) along with flights to Abidjan Felix Houphouet Boigny (ABJ) and Ouagadougou (OUA) are due in late 2013 with Beijing Capital (PEK) and even Tokyo Narita New Tokyo International (NRT) a possibility during the course of next year. North American operations will include once weekly flights to Montréal Pierre Elliott Trudeau International (YUL) and New York John F. Kennedy International (JFK) with Rio de Janeiro Galeão Antônio Carlos Jobim International (GIG) also on the cards. The fledgling carrier aims to make use of ideal geographic location to become a hub connecting the western hemisphere with the eastern. During the course of this year, Syphax also plans to invest in a Dassault Aviation (Paris Le Bourget (LBG)) Falcon for use on charter operations.

Tunisair (TU, Tunis Carthage International (TUN)) has received the greenlight from government to embark on a downsizing initiative aimed at cutting the bloated carrier's hefty wage bills. Speaking in the Tunisian capital, Tunisair CEO, Rabah Jrad, said the planned 1'700 layoffs, whilst socially painful, are critical to the long term survival of the airline. In addition, he said that, while a series of programmes intended to financially rehabilitate Tunisair were beginning to bear fruits with preliminary passenger figures for Q1 2013 showing a rise of 4.4% on 2012, the Tunisian national carrier would, this year, remain dependent on the Fiscus to the tune of EUR 20million. Following the Arab Spring uprising in 2011 and its knock on effects in the tourism industry, Tunisair's workforce ballooned to over 8'000 employees when Tunisair Catering, Tunisair Handling, Tunisair Express (UG, Tunis Carthage International (TUN)) and Tunisair Technics were absorbed into Tunisair Holdings. The airline's all powerful trade unions have yet to comment on the impending redundancy drive.

Tunisair (TU, Tunis Carthage International (TUN)) has offered its four B737-500s and three A300-600s for sale in an international tender earlier this week. The tender also includes ATR42-300 TS-LBA (c/n 245) that had last been operated by Tunisair subsidiary Sevenair (UG, Tunis Carthage International (TUN)) but has already been retired prior to Sevenair’s rebranding to Tunisair Express (UG, Tunis Carthage International (TUN)).

Tunisair (TU, Tunis Carthage International (TUN)) has announced plans to cut up to 1700 of its 8000 jobs by 2014 as part of a restructuring plan aimed at making the loss making state owned carrier profitable by then. As part of the plan, Tunisair also plans to turn Tunis Carthage International (TUN) into a transit hub offering more connections from other African countries via Tunis to Europe.

Tunisair (TU, Tunis Carthage International (TUN)) Director and Secretary General Rebah Jrad has asked the Tunisian government to finance a restructuring plan that aims to reduce its staff numbers to competitive levels following a $98.3 million USD loss in 2011. Tunisair like many government owned national carriers in the region is known to be overstaffed and has so far always been faced with major strike threats when its manageement had previously proposed similar plans.