Madagascar Airlines’ turnaround plan will receive US$25 million (R465 million) as an advance from the World Bank, following a thorough analysis of the Malagasy carrier’s situation and business plan.
The funds provided through the World Bank’s Economic Transformation for Inclusive Growth Project may lead to greater investment in the development of Madagascar’s aviation industry, reports simpleflying.com. The loan will reportedly be used by the airline to refurb its ATR72-500 fleet, enhance its digital systems, improve its services and strengthen the carrier’s image.
In November 2023, World Bank representatives met with government officials in Madagascar to approve the airline’s Phénix 2030 turnaround plan.
“The World Bank is not there to repay creditors. This financial institution is there to finance us in important investments for our development and for our return to balance. We made a projection of our finances over five years, which we discussed together in detail. They understood that our company can return to balance from 2025 and earn money to repay this loan,” said Thiery de Bailleul, Madagascar Airlines’ CEO.
In December 2023, Travel News reported that the Malagasy government would provide the funds for the recovery plan upfront, which the World Bank would later reimburse as a loan.
