• Follows earlier $25M under Integrated Growth Project for airline recovery
  
• Reform plan includes governance overhaul aligned with OECD and ESG standards
  

The World Bank has approved $40 million in financing to support the restructuring of Madagascar Airlines, the Malagasy flag carrier said in a statement issued on Saturday, November 8, 2025.

“The World Bank, encouraged by the progress made in the airline’s recovery plan, has agreed to provide an additional $40 million, complementing the $25 million already secured through the Integrated Growth Project (PIC),” the company said.

The former national carrier, Air Madagascar, which was burdened with around $100 million in debt, had been placed under a collective debt settlement procedure (PCAP) by the government. The measure was intended to shield the airline from creditors, preserve its strategic assets, and maintain essential national air services, seen as vital to the country’s economic and social fabric.

Madagascar Airlines was created under this process to ensure operational continuity based on a modern, financially viable, and performance-driven business model.

As part of its partnership with the World Bank, the airline is implementing a corporate governance reform program aligned with OECD international standards. The initiative aims to enhance transparency and efficiency by creating an Audit Committee, Remuneration Committee, and Strategy Committee, all reporting to the board of directors and consistent with OECD and ESG principles.

Ingrid Haffiny