Madagascar Airlines Streamlines Operations to Strengthen Domestic and Regional Presence

Madagascar Airlines, under the leadership of CEO Thierry de Bailleul, is undergoing significant changes aimed at enhancing its operational efficiency and seeking international investors. The airline has ceased international flights, focusing instead on developing its domestic and regional services as part of a comprehensive strategic plan.

Key Challenges and Strategic Shifts

Thierry de Bailleul outlined the numerous challenges facing Madagascar Airlines to France’s tourism stakeholders, highlighting the airline’s transition following the merger of Air Madagascar and its domestic subsidiary Tsadaria in April 2023. The merger, coupled with the end of a strategic partnership with Air Austral and the impact of the Covid-19 pandemic, led to the liquidation of Air Madagascar. Despite these hurdles, de Bailleul has stabilized the new entity and is advancing the strategic plan, Phénix 2030, which is structured into three key phases.

Ending Costly Long-Haul Flights

The initial phase involved the cessation of long-haul flights to Europe. These flights, previously operated using wet-leased aircraft, proved financially unsustainable. This move is part of a broader effort to streamline operations and reduce costs, allowing the airline to focus resources on more profitable routes.

Refocusing on Domestic and Regional Markets

Madagascar Airlines is now concentrating on expanding its domestic and regional flight services. This includes increasing connections to Indian Ocean destinations such as Reunion, Comoros, and Mauritius. The airline is also recommissioning its ATR fleet to better serve these markets. Once the domestic and regional operations are balanced, there are plans to reinvest in long-haul flights using more efficient aircraft like the Airbus A330-200.

Expanding International Partnerships

The Malagasy tourism ministry has ambitious plans to boost international tourism, aiming for an annual total of one million tourists by 2028. This objective led to a memorandum of understanding (MoU) with Qatar Airways in January 2024. As part of this agreement, Qatar Airways will launch daily direct flights from Madagascar, significantly increasing international connectivity.

According to Valéry Ramonjavelo, Madagascar’s Minister of Transport, the goal is to triple the annual number of international flights from 80 to 240. The ministry is exploring additional partnerships with airlines from the Middle East and China to achieve this expansion. Currently, about 10 airlines operate 80 weekly international flights to Madagascar, with plans to introduce over 150 more direct flights.

Seeking International Investors

Madagascar Airlines is actively seeking investors to further its strategic objectives. Notably, Air Austral and Ethiopian Airlines were previously shortlisted as potential strategic partners with Air Madagascar, indicating a continued interest in forming alliances to strengthen the airline’s position.

In summary, Madagascar Airlines is undergoing a transformative period, ceasing costly long-haul operations and focusing on more sustainable domestic and regional growth. With strategic partnerships and an eye on increasing international flights, the airline aims to secure a stronger position in the aviation market while enhancing its operational efficiency.