Aviation: Air Austral of Reunion signs deal with Madagascar government to acquire 49 percent in Air Madagascar
Vanilla Island airlines Air Austral from Reunion and Air Madagascar have confirmed that they have finalized and signed a deal under which the French registered home carrier of Reunion will acquire a 49 percent stake in the Madagascar national airline.
As earlier reported here did both airlines let it be known that their teaming up would substantially enhance air connectivity between the islands and in particular lead to better long haul links for Madagascar and Reunion.
Negotiations were at times described as challenging as they went on since April this year but all is well which ends well. A detailed business plan was apparently agreed between the partners, mapping out the road to turning Air Madagascar’s fortunes around over the next couple of years. At least 40 million US Dollars will be injected into Air Madagascar by Air Austral to provide additional working capital.
Air Austral will in the very near future second top management to Air Madagascar though the government in Antananarivo will control the board and field the Board Chairman.
Also part of Madagascar’s commitment will be improvements at the main international airport and other airports across the sprawling island.
Air Madagascar presently flies to 12 domestic destinations and a further 7 international destinations across the Indian Ocean, to China and to France.
Source: St Agne