in Air Transport

Air Austral accedes to Air Madagascar's shareholding

Posted 11 December 2017 · Add Comment

Air Austral has completed its accession to Air Madagascar's share capital, reports ch-aviation.

 

Under the terms of the deal, Air Austral will acquire a 49.41% stake in the Malagasy carrier for USD40 million with the Malagasy state retaining a majority 50.59% shareholding.

According to a government release, Air Austral's contribution is broken into three tranches; the first entails USD10 million needed to acquire a 39.04% stake in Air Madagascar and which has now been paid in. The second tranche of USD5 million will take its equity stake to the 49.41% agreed to while the remaining USD25 million will be used to recapitalize Air Madagascar's operations.

The Malagasy state covered the airline's MGA303 billion Malagasy Ariary (USD94.4 million) worth of legacy debts. As such, following this disbursement, Antananarivo will no longer support the airline from its 2018 budget onwards.

As majority shareholder, the Malagasy state has appointed Herivelo Andriamanga as Chairman of the Board along with three of the seven board members namely Thierry Rakotoarison, Eric Koller and General Didier Gérard Paza.

Air Austral has nominated Didier Robert (President of shareholder Sematra), Marie Joseph Male (President And CEO of Air Austral), and Dominique Dufour, (Secretary General of Air Austral) as its representatives.

Air Austral aims to revamp Air Madagascar's fortunes via a two-phased business plan. The first phase entails a three-year turnaround period wherein the Malagasy airline will be put back on its feet while the second phase is will focus on long-term sustainable growth. Under the plan, Air Madagascar will reach a fleet of fourteen aircraft in 2020, growing to seventeen in 2023, while establishing a separate carrier focussing on domestic short-haul services.

* required field

Post a comment

Other Stories
Latest News

Tiger wants the Russians to roar

Tiger Aviation Services (TAS) started its ground-handling services with just four staff in a small office at Cairo International Airport nearly three decades ago.

Bombardier sees increasing demand for pre-owned aircraft in Africa

At the African Aviation Finance conference in Johannesburg, South Africa, Bombardier Commercial Aircraft reflected on the development of the African Regional Aircraft market, stating that it was seeing a surge in demand in Africa for

Embraer Phenom to make impact with debuts at EBACE

Embraer will debut the Phenom 100EV business jet at the European Business Aviation Conference and Exhibition (EBACE) in Geneva, Switzerland, from May 29 to May 31.

Ethiopian marks African aviation history with 100th aircraft in active service

Ethiopian Airlines and SKYTRAX have announced that it will take delivery on June 5 2018 of its 100th aircraft, a Boeing 787-900, making it the first African airline to operate a 100 aircraft fleet in the history of the continent.

Kenya turns to crop dusters to turbo charge its forces

Kenya’s requirement for new light attack/armed intelligence, surveillance, and reconnaissance (ISR) aircraft has been dogged by controversy. Jon Lake attempts to unravel a complicated situation.

Air BP expands its network with six new locations in Africa

Air BP has collaborated with Vivo Energy to grow its network in Africa, adding six new locations: Sir Seewoosagur Ramgoolam International Airport, Abidjan-Felix-Houphouet-Boigny International Airport, Nelson Mandela

Routes African SK1505180718
See us at
GroundHandling BT2205130918AAD2018 BTAirCargoAFA_BT220318210219