Madagascar: AIR TRANSPORT – Madagascar Airlines rejoins IATA

Madagascar Airlines regains its place in the International Air Transport Association (IATA). This was announced yesterday by Thierry de Bailleul, CEO of the company.

After a period of absence, Madagascar Airlines has regained its position within the International Air Transport Association (IATA), an announcement made by Thierry de Bailleul. “Madagascar Airlines is now once again a full member of IATA,” he said. This reinstatement comes after periods of financial difficulties and image issues faced by the company. The reinstatement coincides with Madagascar Airlines’ return to the Billing and Settlement Plan (BSP) and the IATA Clearing House, where it was excluded in 2018 and 2016 respectively. These two entities play a crucial role in the air transport sector by facilitating transactions between airlines and travel agencies.

The BSP, a central platform of IATA, serves as a mediator for all ticket transactions between airlines and travel agencies. Madagascar Airlines’ non-participation in this platform had limited its recognition and accessibility in the international market.

Fluidity

Thierry de Bailleul explains that the exclusion had reduced the visibility of the company to many travel agencies that could not offer its flights.

“Now, with our reinstatement, it is possible to book flights to destinations like Antananarivo or Nosy Be through a wide network of travel agencies affiliated with BSP, covering 70 to 90% of the market,” he adds. Membership in the IATA Clearing House also improves operational fluidity by facilitating the issuance of tickets combining Madagascar Airlines flights with those of other carriers and ensuring equitable revenue distribution.

The suspension from IATA in 2015, due to financial problems and repeated strikes, had forced Madagascar Airlines to suspend its contribution to the IATA compensation fund. With the recent acquisition of its Air Transport Certificate (CTA) and operating license, the company planned to rejoin BSP by mid-June 2023. In 2022, a five million dollar deposit was required by IATA to facilitate this return.

Meanwhile, Madagascar Airlines is working to improve its image and functionality, investing three million dollars in digitalization. On the commercial front, it aims to boost its local agencies to strengthen its brand. The company plans to expand its fleet with six new ATR 72-500 aircraft in the coming months, a measure taken to optimize operational costs and achieve profitability.

Itamara Randriamamonjy