2023-11-10 07:00:00
The Council of Ministers validated the implementation of the new business plan, called “Phoenix 2030” of the Madagascar Airlines company.
This plan emphasizes profitability and self-financing through loans and equity investments and in no way calls on public funds, specifies the company’s management. The objective is to relaunch and bring the company back to profitability within 2 years.
A few days ago, Thierry de Bailleul, CEO of Madagascar Airlines, appointed less than a year ago, announced the temporary cessation of international flights to refocus on domestic services with its subsidiary Tsaradia. The long-haul operating model with aircraft rental in ACMI (aircraft rental with crew included) and the high cost of kerosene have caused deficits significantly impacting cash flow and acting as the entry point for a A vicious circle from which it is almost impossible to escape, said Thierry Bailleul. He spoke of 2.8 million USD in monthly losses for the national company. A situation which led to the impossibility of paying suppliers and delays in the delivery of aircraft.
Furthermore, Madagascar Airlines has signed a commercial codeshare agreement with the company Corsair so as not to cut off service to France. The company will be able to sell on the partner’s plane under its code with the same price scales and with the same baggage allowances in Paris. Indeed, Corsair’s A330s are practically identical to those used by Madagascar Airlines in ACMI with Air Belgium’s A330-200.
Another notable event in the governance of Madagascar Airlines is the return of Mamy Rakotondraibe as head of the company’s board of directors. The latter was forced to give up his place to Rinah Rakotomanga following problems with the law in November 2022. Rinah Rakotomanga, who resigned from the presidency of the board of directors on November 3, for her part, heaped reproaches on the management of the company. She accuses the latter of making numerous decisions against the interests of the company and the staff. The validation of this new development plan for Madagascar Airlines by the government is a setback for Rinah Rakotomanga. In a long post on Facebook where she spoke at length about her resignation, she spoke of her refusal to believe that these decisions had the approval of the highest authorities of the country, that is to say the government.
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