Air Madagascar's debt burden resurfaces
A former director warns that reviving the old airline risks repeating past financial mistakes.
Air Madagascar's operational return on October 31 was marked by national pride, but a former director claims this masks a deeper financial reality. The airline, legally distinct from the newer Madagascar Airlines, carries over $100 million in historical debt. The state's announced abandonment of $50 million in claims on Air Madagascar leaves the remaining debt unresolved.
This move to rehabilitate the old company, according to former Air Madagascar General Director Thierry de Bailleul, could reinstate costly staff benefits like termination indemnities. He suggests this benefits corporate interests and historical creditors over the airline's economic viability. The new management has announced positive financial results without providing audited accounts or specifying the reporting period.
De Bailleul argues that Air Madagascar's core issues were its economic model, debt, and governance, not its name. He calls for the publication of audited 2026 accounts and previous years' financials to assess the company's true state. The concern is that past practices leading to bankruptcy could be revived under the guise of national pride.
Why it mattersMadagascar's national airline is facing a potential return to its previous financial struggles due to unresolved debt and the reinstatement of costly employee benefits.