Air Madagascar has sold its two Airbus A340-300 aircraft for $2 million (€1.93 million) to a Chinese buyer, according to a report by Midi-Madagascar on January 30, 2025.

The sale, initiated in March 2024, was part of efforts to ease the financial burden on Air Madagascar, now managed by Madagascar Airlines. 

The two aircraft, registered as 5R-EAA (MSN 319) and TF-EAB (MSN 210), were 25 and 27 years old, respectively. While the buyer's identity was not disclosed, Madagascar Airlines, the country's current national carrier, facilitated the transaction.

According to Midimadagasikara, the buyer was already on-site to oversee the dismantling of the aircraft.

The proceeds from the sale are expected to help offset a portion of the airline's significant debt, estimated at around $100 million, with 60% owed to the Malagasy government.

The aircraft had been grounded for some time, accumulating maintenance costs without generating revenue. The Minister of Transport and Meteorology authorized the sale as part of broader efforts to restructure the airline's finances.

Madagascar Airlines CEO Thierry de Bailleul confirmed the transaction, emphasizing that his company's role was limited to providing "technical support and expertise."

He clarified that Madagascar Airlines was not involved in decision-making or managing the sale's proceeds. "Air Madagascar remains a legally distinct entity under judicial recovery.

Since then, the mission of the national carrier has been transferred to Madagascar Airlines, which obtained its permanent Air Operator Certificate (AOC) in April 2023," he stated.

Airbus A340-300s were acquired in June 2012 and March 2013 through a lease-to-own agreement with Air France. This arrangement enabled Air Madagascar to resume European operations after its Boeing 767s were blacklisted by the European Union in 2011.

However, the aircraft later became entangled in legal disputes. In 2019, the Paris Commercial Court ruled in favor of Air France over unpaid lease payments, amounting to $46 million, with an additional $55 million still outstanding.

Attempts to negotiate early buyouts in 2018 were further complicated by legal conflicts regarding Air France's retention-of-title clause, which allowed the airline to maintain ownership until complete payment.

The sale marks the end of a turbulent chapter for Air Madagascar. Since December 2021, Madagascar Airlines has operated Air Madagascar and its subsidiary on domestic activity, Tsaradia, under a lease-management arrangement.
 
The transition was formalized when Madagascar Airlines received its AOC in April 2023.
 
Madagascar Airlines, established in April 2022 through the merger of Air Madagascar and Tsaradia, has outlined ambitious plans for fleet optimization. The airline is currently implementing the "Phoenix 2030" recovery plan, valued at $67 million.
 
Of this, $25 million has already been secured from the World Bank. Madagascar Airlines aims to achieve its first operational profits by the end of 2025 as part of its turnaround strategy.