Madagascar Airlines has denied media reports suggesting the alleged illegal sale of aircraft parts, equipment, and buildings belonging to insolvent Air Madagascar in an official statement today (January 15).
In October 2021, Air Madagascar was placed under a collective debt settlement procedure, which was a government measure to ensure it continued operations and protected it from creditors, and thus formed Madagascar Airlines.
“No illegal sale of assets has been carried out, either by Madagascar Airlines or its staff,” the statement from Madagascar Airlines and Air Madagascar (represented by court-appointed administrators) read.
The assets remain under the supervision of the court-appointed administrators in ongoing insolvency proceedings, with no sale possible without prior authorisation from the Commercial Court, according to the statement.
The denial comes amid heightened public scrutiny of Madagascar Airlines and its governance. As reported by Airline Economics in November last year, the airline faced allegations of favouritism and conflicts of interest in the awarding of a renovation contract to a supplier.
BIANCO took precautionary measures such as freezing bank accounts linked to the disputed contract.
At the time, Madagascar Airline confirmed that a judicial procedure was underway. The airline did not detail the allegations, but said: “The company, as a legal entity, is not a party to this process and reaffirms its full respect for the independence of institutions as well as the principle of presumption of innocence.”
The airline had continued to operate normally and had just secured $40 million in World Bank financing a week prior to support its turnaround plan.
With today's denial of allegations surrounding illegal asset sales, both Madagascar Airlines and Air Madagascar said they “remain available for any verification, inspection, or audit by the legally authorised bodies”.