Connecting the island with the world

As an island destination, Madagascar is highly dependent on air access to bring tourists from key markets and there is no doubt that tourism stakeholders view difficult access as the key impediment to developing the sector.

The national carrier, Air Madagascar, transports nearly 600,000 passengers a year on its domestic, regional and international routes, including two flights a week to Guangzhou, but the company has faced financial difficulties for years and was dealt a severe blow in April 2011 when its planes were blacklisted by the European Union, which cited inadequate maintenance procedures.

The situation is costing the airline an estimated $30 million a year and has yet to be fully resolved. In the meantime, Air Madagascar has been forced to engage in expensive leasing contracts to maintain its flights to France.

"Air Madagascar has been the national carrier for more than 50 years," said CEO Haja Raelison.

"Trying to run an airline profitably for an island nation like Madagascar is fraught with difficulties, so during that time we have seen a lot of highs and lows. The most immediate challenge we are facing today is to be removed from the EU's annex B listing which restricts us from using certain aircraft in Europe. On the operational side it has resulted in higher costs which has hampered our plans to grow.

"There is also a reputational cost, so it remains a priority to address those concerns and it is our sincere hope to be removed from the list in the course of this year."

In its efforts to modernize, the airline has embarked on a program to renew and expand its fleet.

In the medium term, it will continue to use its Airbus A340s for long-haul flights. "From a commercial point of view, these aircraft are still viable, but we are planning to replace them with the more modern A330 or Boeing's 787, either next year or in 2017," Raelison said.

To enhance its regional prospects, Air Madagascar ordered three ATR 72-600s in a deal worth a reported $77 million and has leased two more of the same kind of aircraft, the first of which was delivered last month. Eventually the company hopes to purchase a total of seven ATR 72-600s which will provide a welcome boost to its inter and intra-island operations.

"We are very pleased to be among the first African operators to fly the new ATR 600 series," said Air Madagascar Chairman Henry Rabary-Njaka.

"These aircraft have become a benchmark for regional airlines around the world. Their performance on short runways, along with their strong reliability, make them a real asset in the expansion of our regional transportation network. In addition, their low operating costs will allow us to offer the most attractive fares."

The move is timely as Madagascar is now a key member of the recently created Vanilla Islands Organisation which aims to attract more visitors to the Indian Ocean by increasing connectivity and jointly branding tourism from Mauritius, La Reunion, the Seychelles, Maldives, Comoros and Madagascar under one banner.

"The concept of the Vanilla Islands is one we embrace because our tourism products complement each other very well. Flights between the islands will improve both in terms of frequency and price, so there has never been a better moment for Chinese tourists to visit the region and sample our legendary Malagasy hospitality," said Raelison.

(China Daily 04/22/2015 page18)