Madagascar Airlines, formerly known as Air Madagascar, is embarking on a transformative journey in response to economic challenges. CEO Thierry de Bailleul is spearheading a strategic overhaul, introducing a business plan with a clear objective: restoring profitability within a two-year timeframe. This marks a pivotal moment for the airline as it undertakes several key initiatives to reshape its future.
One of the central changes in this transformation is the temporary suspension of international flights. Notably, the highly anticipated acquisition of the Embraer E190-E2 has been scrapped. De Bailleul unveiled these decisions during a recent press conference, where he shed light on the rationale behind the moves.
The suspension of international operations, especially the ACMI (wet lease) flights to France, was prompted by the airline’s staggering monthly loss of approximately $2.8 million. This significant financial strain stemmed from crew expenses, which had been severely impacting the airline’s bottom line. In response, Madagascar Airlines decided to halt ACMI flights and is now working towards transitioning to a dry lease model for long-haul flights, which will be operated by their in-house crews.
Simultaneously, Madagascar Airlines has entered into a strategic codeshare partnership with Corsair International, a development announced by the company’s director of programs and partnerships, Haja Raelison. The collaboration revolves around the Antananarivo-Paris route and allows Madagascar Airlines to synchronize its services with Corsair International’s flights on the same route. The partnership will see the utilization of Corsair’s Airbus A330-300 or A330-900 aircraft, maintaining consistent pricing and Malagasy service standards. The distinctive feature here is that these flights will land at Orly via Reunion, a departure from the traditional Charles de Gaulle route.
Haja Raelison elucidated this by saying, “With this new service, customers will have the same prices as those of Madagascar Airlines, the same Malagasy franchises. The difference is that these planes will land at Orly via Reunion instead of Charles de Gaulle.”
Furthermore, the much-anticipated acquisition of the Embraer E190-E2, initially contracted with Azorra, has been canceled. Thierry de Bailleul highlighted that this decision was driven by an assessment that the E190-E2 might not align with Madagascar’s specific operational requirements. Concerns regarding engine reliability, especially those associated with Pratt & Whitney engines used in these aircraft, played a substantial role in this strategic shift. As a result, the airline is now exploring the E190-E1 models, backed by the Malagasy authorities, with plans to acquire three of these as part of the revised strategy.
This series of strategic moves, articulated within the airline’s new business plan, signifies the beginning of a roadmap aimed at steering Madagascar Airlines toward financial stability within the targeted two-year timeframe. The cancellation of the E2 contract carries no financial penalties for the Malagasy company, as it eyes the E190-E1 model, which is expected to better cater to their operational needs while addressing concerns about engine reliability.
