Madagascar Airlines has been in quite the pickle lately, canceling its E2 order and stopping all long-haul flights. It seems the airline is in tremendous trouble.
The Profit Plunderer
The quote "Profit Hunter" seems less profitable than it was told. Madagascar Airlines has been in negotiations with Lessor Azorra since December. The lease agreement would consist of three E190-E2s.
The initial order was set to be delivered in March but was eventually advanced to June, Which was already the first indication of the end.
The order was recently canceled. Madagascar Airlines has been quite open about its situation, saying it's too early to rely on it, especially with the uncertainty surrounding the Pratt & Whitney engines.
The E2s engines remain controversial, with the engine having many breakdowns. This can be seen with KLM Cityhopper, which has been struggling with its E2s to such an extent that it had to revise its flight schedule and leasing plans for the summer back in May.
The Financials of Madagascar Airlines
Madagascar Airlines has been in a financial struggle for years. This has impacted the airline considerably, with the airline not being able to turn profitable and sinking into debt. It has affected them to the extent that they had to stop all long-haul flights temporarily. Stating that they want to focus more on their Domestic operations. With Focus shifting to their ATR fleet, we must see what the future holds for this airline.
Rinah Rakotomanga, the board's chairwoman, resigned, saying that the "deterioration of Madagascar Airlines' situation was having a substantial impact on operations." The airline announced a new chairman, Mamy Rakotondraibe, the following day.
Mamy Rakotondraibe has been in the industry for a while now, First as Managing Director of DHL's operations in Madagascar. Then 4 years at Director General of Caisse Nationale de Prévoyance Sociale Madagascar(CNaPS). Mamy has stated that the shift will allow the airline "to start moving forward in a much more aligned way."
Currently, the airline seems to be fighting a losing battle, but we will have to see if Mamy can rescue the airline.
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