Algerian independence
Two shipping companies, Compagnie Générale Transatlantique, and Compagnie de Navigation Mixte, were the owners of a majority stake (98%) in Air Algérie until Algeria gained its independence in 1962. Following independence, the Délégation Générale in Algeria and Air France took over a controlling interest. The financial structure changed in March 1963, when the shipping companies and Air France ceded a 31% interest, and the Algerian government took possession of 51% of the company assets, with the airline gaining flag carrier status. In April 1964, the government increased the participation in the airline to 57%. That month, a contract was signed for the acquisition of two Ilyushin Il-18s aimed at operating the Algiers–Moscow service. Air Algérie took delivery of just one of these aircraft, as the contract was later cancelled. The sole Il-18 in the fleet was used by the government. There were eight DC-4s in the airline's fleet by April 1968. That year, four ex-Lufthansa Convair 440s were bought and converted to the 640 version. These aircraft came to replace the ageing DC-4s. Charter operations made up to 20% of the airline activities.
By March 1970, the government was the owner of 83% of the company; at this time, a Boeing 737-200, five Caravelles, four CV-640s, three DC-3s and one DC-4 were part of the fleet. Société de Travail Aérien, a domestic carrier that had been founded in 1968, was taken over by Air Algérie in May 1972. In 8, three Fokker F27-400s were ordered for £2.5 million. In 9, with a second Boeing 737 pending delivery, two more aircraft of the type —one of them a convertible model— were ordered. That year, the government of Algeria boosted its participation in the carrier to 100% when it acquired the remaining 17.74% stake held by Air France. A new route to Karachi was inaugurated in 1975. In November 1979, four Boeing 727s were ordered in a deal worth US$62 million.
By July 1980, Air Algérie had 5,621 employees and a fleet comprising 57 aircraft, including 14 Ag-Cats, six Boeing 727-200s, ten Boeing 737-200s, three Boeing 737-200Cs, one Boeing 747-200C, one Cherokee Six, two Convair CV-640s, one Douglas DC-8-63CF, one Nord 262 and 18 Queen Airs; at this time, the company offered international scheduled services to Belgium, Bulgaria, Czechoslovakia, Egypt, France, Germany, Italy, Yugoslavia, Libya, Romania, Spain, the UK, the USSR and Switzerland, among other countries, as well as an extensive domestic network. In January 1981, the carrier ordered three Lockheed L-100-30s; by late 6 the same year, the first of these aircraft was due to be delivered. In November 1981, a Boeing 727-200 and a Boeing 737-200 were acquired. Three Boeing 737-200s were ordered for US$50 million in 1983. Air Algérie became Airbus' 48th customer when it placed an order for two Airbus A310s in 1984. That year, a subsidiary called Inter Air Services (IAS), an airline that flew domestic and regional services using Fokker F-27 aircraft, was formed. The IAS network was operated on Air Algéries's behalf, and at March 1985 included Adrar, Algiers, Bechar, Bordj B. Mokhtar, Djanet, El Golea, Ghardaia, Hassi Messaoud, Illizi,
