As announced several months ago, airlines Air Austral and Air Madagascar signed a memorandum of understanding (MOU) on 21 July 2020 to confirm Air Austral’s withdrawal from Air Madagascar’s capital. The Malagasy government and the CNaPS[JJ1] (National Social Security Fund) will officially take over the control and governance of Air Madagascar.
This ratification finalises the capital-intensive partnership established in 2017 between both airlines and concretely translates as a share exchange: Air Austral will exchange CNaPS shares with Air Austral’s Air Madagascar shares without any financial implications for both parties. Immediately after the signature, the three administrators appointed by Air Austral resigned so that Air Madagascar could appoint a new Board of Directors.
The current global health and economic context has forced all businesses to review their strategies and the Malagasy government’s plan to take over the reins of it’s national airline’s future meant that the most logical decision for Air Austral was to fully withdraw from Air Madagascar’s capital. The signed agreements reflect the airlines’ shared aim to pursue their own objectives, choices and strategic plans.
The past three years in partnership laid the foundations for the future development of both airlines.
The reorganised Air Madagascar Group, which now offers a modernised product and restored flight capacities, will be able to market its offer internationally and build on a more efficient domestic network thanks to new funding projects. The creation of the subsidiary Tsaradia is now essential to the economic sector, especially tourism.
In line with its strategic plan, established several years ago, Air Austral has reinforced its undisputed position as the Indian Ocean transport services leader through its diverse regional network and connectivity between the area and Europe. During these three years, Air Austral developed a solid and coherent offer to increase travel opportunities to and from Reunion Island and Mayotte on the one hand, and to Madagascar on the other, where the airline and Ewa, its subsidiary, offer 7 air travel routes.
Whilst the strategic partnership between the airlines has reached an end, Air Austral and Air Madagascar are still open to future partnerships. The sales deals and synergies established for the benefit of Indian Ocean passengers will be continued for as long as they meet the mutual interests of both airlines.