Air Algérie (AH, Algiers) is at the centre of a diplomatic stand off between Algeria, the Netherlands, and Belgium after a Belgian court ordered seized an Algerian B737-800, 7T-VKF (msn 40860), at Brussels National on the evening of Friday, December 12. The directive was issued on behalf of Dutch aircraft finance and leasing firm, K'Air BV.
On Saturday, Algiers recalled its ambassadors to Belgium and the Netherlands "for consultations" while on Sunday, December 14, the Belgian and Dutch ambassadors to Algeria, Frederic Meurice and Willemijn Van Haaften respectively, were summoned to the Algerian Ministry of Foreign Affairs to explain why the seizure had gone ahead despite all avenues of appeal not having been exhausted.
"The recall comes following the decision of the Belgian court to seize and to prohibit in the Brussels airport, the flight of an Air Algérie aircraft all the while all avenues of appeal not having been exhausted," the Algerians said.
K'Air managing director Hamid Kerboua told the Algerian press that the standoff with the airline stems from a USD13million agreement Air Algérie signed in 2008 for the sale of ten retired aircraft.
The Dutch firm reportedly paid a USD2million deposit as an advance fee to secure the contract only for the Algerians to unilaterally cancel it without refunding the money. It is this USD2million, Kerboua said, that is the source of the dispute between the two parties.
K'Air took the Algerians to the International Court of Arbitration in March which subsequently ruled in its favour. With Air Algérie refusing to abide by the ICA's decision calling instead for arbitration to be carried out in Algeria, Kerboua says his company was forced to obtain a Belgian court order in August to enforce the ICA's order.
