Air Transport World

On course for recovery: with a government seemingly committed to restoring it to financial health, Air Madagascar may have put its crisis behind.(Profile)(Company Profile)

After several years of uncertainty linked in part to the recently resolved political crisis in this island nation, Air Madagascar's survival appears to have been assured through a financial restructuring program and a $10 million cash injection by the new government of Marc Ravalomana, a prominent local businessman. Under the restructuring package, creditors agreed to reduce their claims by 50% and accept repayment over a three-year period.

Meanwhile, since June the airline has been receiving interline revenue following a 17 month suspension from the IATA Clearing House.

The company's financial problems date back to 1999, the last year for which an annual report was published. The 2000 loss is estimated at $10 million and the 2001 loss at $20 million by Lufthansa Consulting, which attempted to unravel the accounts after being appointed in 2002 by the new government to develop and oversee the carrier's restructuring. …

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