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Air Madagascar placed under court restructuring

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Air Madagascar has been placed under a court-appointed restructuring process, the island’s transport ministry has disclosed.

The flag carrier is now under a collective liabilities settlement procedure, or procedure collective d’apurement des passifs after incurring an “operating deficit/cumulative loss” of around $80 million, it said.

A statement from the Malagasy presidential office highlighted that ATR leasing costs at “double” the normal price and “uncontrolled” management costs, which it linked to Air Madagascar’s partnership with Air Austral.

It adds that Air Madagascar’s fixed charges have also continued to rise and that employee numbers “far exceed what the company really needs”.

An in-depth audit of all the debts incurred by the airline will now be undertaken by the accounts commissioner. In addition, all agreements or contracts entered into by Air Madagascar are being terminated.

The country’s civil aviation authority stated on 14 October that commercial flights operated by Air Austral and Air Mauritius on inter-island routes from Mauritius and La Reunion to Madagascar would resume from 23 October.

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