Air Madagascar deal worsens with Air Austral, government comes for rescue
Another airline in news from the African continent at the brink of liquidation due to mounting debt after Kenya Airways, South African Airways, and Air Zimbabwe is Air Madagascar.
November 11, 2019: Another airline in news from the African continent at the brink of liquidation due to mounting debt after Kenya Airways, South African Airways, and Air Zimbabwe is Air Madagascar. The Madagascar government has injected an undisclosed sum of money into the national airline, allowing the airline to continue operations for now.
This situation emerged despite the partnership with Reunion-based French airline Air Austral, which in 2017 acquired a 49 percent stake in Air Madagascar.
As per the agreement, the French airline must have injected $40 million into Air Madagascar, which did not happen so - leading to operational disability.
While Air Austral, as part of their fleet renewal, recently signed an order for three A220, there is a similar order for Air Madagascar hanging in the balance now due to the uncertainty over the airline’s future.
Efforts to find additional investors for Air Madagascar so far have been unsuccessful, leaving both airlines and the partnership with Air Austral under the scanner.