The plane vanished over the Malian region of Gao, some 500 km southern of the Algerian border, Prime Minister Abdelmalek Sellal told reporters on the sidelines of a parliament session.
An updated statement from Air Algerie said there were 112 passengers and seven crew members on the missing plane, according to Algeria's state-run APS news agency.
Air Algerie also confirmed that the missing aircraft was chartered from the Spanish Swiftair company.
"The last radar contact with the plane occurred at 1:55 GMT while flying over the area of Gao in Mali," Air Algerie said, adding that the aircraft took off from Ouagadougou at 1:17 GMT and was scheduled to arrive in Algiers at 5:11 GMT (6:11 local time).
This incident comes after a week after a Boeing 777 Malaysia Airlines passenger plane crashed over eastern Ukraine en route from Amsterdam to Kuala Lumpur, killing all 298 people on board.(KH)
