Tripoli Faces Internal Dispute Over \$10.6 Million Afriqiyah Airways Debt Settlement

Libya’s aviation sector finds itself at the centre of political tension as a heated debate unfolds in Tripoli over the government’s decision to allocate more than \$10.6 million for settling longstanding debts owed to Afriqiyah Airways. The move, which is intended to provide a lifeline for the national carrier and ensure its continued operations, has sparked controversy at the highest levels of Libya’s transitional government, raising questions about governance, financial oversight, and the future of aviation in North Africa.

The Government of National Unity (GNU), led by Prime Minister Abdelhamid Dbeibah, recently approved the release of over 58 million Libyan dinars to clear the debts held by Afriqiyah Airways. The airline, which has faced significant financial difficulties in recent years, welcomed the decision, describing it as vital for its recovery and long-term sustainability. For Afriqiyah Airways, the cash injection represents a crucial opportunity to stabilize operations, restore confidence among partners, and reposition itself within the competitive African aviation market.

However, the move has not been without its detractors. The Presidential Council, which serves as Libya’s collective head of state with largely symbolic and institutional authority, has publicly opposed the GNU’s action. The council has called for an immediate halt to the disbursement, arguing that the executive branch may have exceeded its mandate in approving such a substantial financial settlement. This intervention has effectively frozen the allocation, plunging the airline’s short-term future back into uncertainty and underscoring the ongoing complexities of governance in Libya.

For the wider African travel and aviation sector, this internal dispute is emblematic of the challenges many national carriers face in politically unstable environments. The fate of Afriqiyah Airways is closely watched not just in Libya, but across North and sub-Saharan Africa, where the health of state-owned airlines is often intertwined with broader questions of economic recovery, connectivity, and regional integration.

Afriqiyah Airways has historically played a pivotal role in linking Libya with key destinations throughout Africa, the Middle East, and Europe. Its ability to maintain reliable services is critical for trade, tourism, and business travel—sectors that are integral to the continent’s broader development agenda. The current impasse, however, raises concerns over the airline’s capacity to honor commitments, invest in fleet renewal, and compete with other African and international carriers.

The dispute also highlights the delicate balance between government intervention and independent oversight in the management of state assets. While the GNU’s intention to settle outstanding debts could be seen as a pragmatic step toward stabilizing the airline and safeguarding jobs, the pushback from the Presidential Council suggests ongoing friction over the appropriate division of powers and responsibilities in Libya’s evolving political landscape.

For African aviation professionals, the situation in Tripoli serves as a cautionary tale about the risks and rewards of government involvement in airline restructuring. Financial support can be a powerful tool for recovery, but only if accompanied by clear governance, transparency, and long-term strategic planning. Without consensus at the highest levels, even well-intentioned interventions can become mired in political stalemate, undermining both operational stability and investor confidence.

The uncertainty surrounding Afriqiyah Airways comes at a critical time for African aviation, as the sector slowly rebounds from the impact of the pandemic and seeks to capitalize on new growth opportunities. Reliable regional carriers are essential for the realization of initiatives such as the African Continental Free Trade Area (AfCFTA), which depends on efficient air links to facilitate commerce and mobility across the continent. The outcome of the Libyan debt settlement could set a precedent for how similar cases are handled elsewhere in Africa, influencing investor sentiment and the strategic direction of other state-owned carriers.

Looking ahead, industry stakeholders in Africa will be watching closely to see how the dispute is resolved and what implications it may have for the airline’s operational continuity and broader efforts to modernize aviation infrastructure. The case underscores the need for robust institutional frameworks that can balance the urgency of financial intervention with the imperative of transparent and accountable governance.

For now, Afriqiyah Airways—and by extension, Libya’s role in African and Mediterranean aviation—remains in limbo. The controversy serves as a stark reminder that, in the absence of clear consensus and effective leadership, even well-resourced recovery plans can be derailed. As African aviation enters a new era of competition and opportunity, the lessons from Tripoli may well shape how the continent navigates the complex interplay of politics, economics, and connectivity in the years ahead.