Madagascar in search of $100m to revamp flag carrier

Madagascar Airlines needs $100 million for its rehabilitation, Valery Ramonjavelo, the country’s Minister of Transport and Meteorology has announced, explaining that the funds aim at making the State-run airline independent.

The airline, launched in April 2022 in replacement of bankrupt Air Madagascar, has presented a turnaround plan known as “Phoenix 2030”, expected to help improve operations after accumulated losses of $25 million over the course of nine months in 2022. The World Bank in November 2023 agreed to back up the plan with $20 million.

Thierry de Bailleul, at the helm of Madagascar Airlines for nearly a year, early in November 2023 indicated that the plan will be self-financed through borrowing and equity investments and will not require taxpayer money.

The airline according to T. de Bailleul is also luring investment from the Middle East.

Faced with challenges, Madagascar Airlines, in November 2023, suspended long haul services to focus on domestic network. The move is result of the combination of the wet-lease expenditure and the cost of fuel. Both challenges caused monthly losses to jump at $2.8 million. De Bailleul argued back that the suspension of long-haul services is a “necessary evil” and will enable it to “straighten out” the company’s accounts without the need for public funds.