Madagascar Airlines received a loan

The Madagascar Airlines turnaround plan will receive US$25 million as an advance from the World Bank after a thorough analysis of the Malagasy carrier's situation and business plan.

Funds provided under the World Bank's Economic Transformation Project for inclusive growth" could lead to increased investment in the development of Madagascar's aviation industry, reports simpleflying.com. The loan will reportedly be used by the airline to upgrade its ATR72-500 fleet, improve digital systems, improve services and strengthen the carrier's image.

In November 2023, World Bank representatives met with Madagascar government officials to approve the Phénix 2030 recovery plan.

“The World Bank does not exist to pay debts to creditors. This financial institution exists to finance us in important investments for our development and for our return to balance. We made a forecast of our finances for five years, which we discussed in detail together. They realized that our company can return to balance sheet from 2025 and earn money to pay off this loan,” said Thierry de Bayeulle, CEO of Madagascar Airlines.

In December 2023, Travel News said the Malagasy government would provide funds upfront for the recovery plan, which the World Bank would later reimburse in the form of a loan.