Air Austral and Air Madagascar partnership headed for breakdown?

February 25, 2020
by Alain St.Ange
2 min read
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Air Austral and Air Madagascar
Written by Alain St.Ange

On Reunion Island, it is being reported that the existing partnership agreement in place between Air Austral of Reunion Island and Air Madagascar of Madagascar are facing ongoing challenges as Air Austral enters into a new phase of negotiations to reduce their 49% shareholding.

It is now being said that the partnership between Air Austral and Air Madagascar, which was started in 2017, is fast heading to a breakdown.

Air Austral paid an initial capital injection of 15 million euros for its equity share, but it has been reported in Madagascar that the second agreed payment of 25 million euros has not been disbursed as was expected.

Both airlines confirmed back in 2017 that they had finalized and signed a deal under which the French-registered home carrier of Reunion Island would acquire a 49 percent stake in the Madagascar national airline.

The intent of this team-up was to enhance air connectivity between the islands and in particular lead to better long-haul links for Madagascar and Reunion Island.

Negotiations at that time were described as challenging, but it all ended well. A detailed business plan was apparently agreed upon between the partners, mapping out the road to turning Air Madagascar’s fortunes around over the next couple of years. The plan laid out that at least US$40 million was to be injected into Air Madagascar by Air Austral to provide additional working capital.

Air Austral is based at Roland Garros Airport in the French overseas department of Reunion Island located in the Indian Ocean. The airline operates scheduled services from Reunion Island to metropolitan France, South Africa, Thailand, and India, as well as a number of destinations in the Indian Ocean.

Air Madagascar is the national airline of Madagascar operating services to Europe, Asia, and neighboring African and Indian Ocean island destinations. Its main base is located at Ivato International Airport in Antananarivo. The airline also operates an extensive domestic network.

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About the author

Alain St.Ange

Alain St Ange has been working in the tourism business since 2009. He was appointed as the Director of Marketing for Seychelles by President and Minister of Tourism James Michel.

He was appointed as the Director of Marketing for Seychelles by President and Minister of Tourism James Michel. After one year of

After one year of service, he was promoted to the position of CEO of the Seychelles Tourism Board.

In 2012 the Indian Ocean Vanilla Islands regional Organization was formed and St Ange was appointed as the first president of the organization.

In a 2012 cabinet re-shuffle, St Ange was appointed as Minister of Tourism and Culture which he resigned on 28 December 2016 in order to pursue a candidacy as Secretary General of the World Tourism Organisation.

At the UNWTO General Assembly in Chengdu in China, a person who was being sought after for the “Speakers Circuit” for tourism and sustainable development was Alain St.Ange.

St.Ange is the former Seychelles Minister of Tourism, Civil Aviation, Ports and Marine who left office in December last year to run for the position of Secretary General of the UNWTO. When his candidature or document of endorsement was withdrawn by his country just a day before the elections in Madrid, Alain St.Ange showed his greatness as a speaker when he addressed the UNWTO gathering with grace, passion, and style.

His moving speech was recorded as the one on the best marking speeches at this UN international body.

African countries often remember his Uganda address for the East Africa Tourism Platform when he was a guest of honor.

As former Tourism Minister, St.Ange was a regular and popular speaker and was often seen addressing forums and conferences on behalf of his country. His ability to speak ‘off the cuff’ was always seen as a rare ability. He often said he speaks from the heart.

In Seychelles he is remembered for a marking address at the official opening of the island’s Carnaval International de Victoria when he reiterated the words of John Lennon famous song… ” you may say I am a dreamer, but I am not the only one. One day you will all join us and the world will be better as one”. The world press contingent gathered in Seychelles on the day ran with the words by St.Ange which made headlines everywhere.

St.Ange delivered the keynote address for the “Tourism & Business Conference in Canada”

Seychelles is a good example for sustainable tourism. This is therefore not surprising to see Alain St.Ange being sought after as a speaker on the international circuit.

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