Tunisair's Expansion Plans to Cameroon Threatened by Major Corruption Scandal: CEO Arrested

The Tunisian national carrier had been eagerly anticipated to launch its flights to Douala, marking a significant step in its long-awaited expansion into Sub-Saharan Africa. This new route was seen as a vital opportunity to enhance commercial and tourist exchanges between Tunisia and Cameroon. However, the company's progress has been jeopardized by internal turmoil.

Khaled Chelly, the CEO of Tunisair, has been detained amid an ongoing corruption investigation, which has uncovered fraudulent practices within the publicly-owned airline. His arrest has led to his dismissal, raising questions about the company's leadership and future. The investigation has broadened to include Najmeddine Mzoughi, the head of Tunisair's internal union, who faces allegations of diploma falsification, pimping, corruption, and influence peddling.

This crisis comes on the heels of a challenging restructuring plan for Tunisair, which saw the reduction of over 1,200 jobs over the past three years. The airline was in the process of reestablishing its international presence when the scandal erupted. The financial stability of Tunisair, already fragile due to the broader issues affecting public enterprises in Tunisia, is now in question.

For Cameroon, the direct flights from Tunisair were expected to boost trade and tourism. The uncertainty surrounding the airline's ability to deliver on its commitments adds a layer of concern for stakeholders in both countries. The anticipated new routes were seen as a way to strengthen ties between Tunisia and Cameroon, but now, the future of these plans hangs in the balance.

In addition to the crisis management, Tunisair’s strategy moving forward will be crucial. The company will need to address the investigation’s fallout and work to restore its credibility and operational stability. Tunisair currently operates a fleet of 19 aircraft, mostly Airbus, and serves around forty destinations, including fourteen African countries. Notably, none of these destinations are within the CEMAC region.

Despite the challenges, Tunisair reported a 16% increase in revenue in 2023 compared to the previous year. This growth was attributed to a 14% rise in passenger numbers and a 1.4% increase in average revenue from regular and additional flights. However, with the current crisis, the airline’s ability to sustain this momentum is now uncertain.

The future of Tunisair's planned service to Cameroon will likely depend on the resolution of the ongoing investigation and the strategic decisions the airline makes to stabilize its operations and regain public trust.