PARTNERSHIP ON THE ROCKS AS AIR AUSTRAL NEGOTIATES TO CUT THEIR 49 PERCENT SHAREHOLDING
(Posted 19th February 2020)
The partnership between Reunion island based Air Austral and Air Madagascar, which started off with much fanfare in 2017, appears to be heading to the exit given the latest reports received from both islands.
After paying an initial capital injection of 15 million Euros for the equity was the second agreed payment of a further 25 million Euros however slow to materialize, and given the challenges Air Austral faces itself are the prospects low that this will happen any time soon. In fact in the financial statements of Air Austral is this sum conspicuously absent.
As a result has Air Austral now started a process of discussions and negotiations with potential other investors from Madagascar to acquire some or maybe even all of its shares.
Government of Madagascar efforts to find a strategic investor have until now also failed to produce results and to preferred suitors, Qatar Airways and Turkish have not shown any signs of negotiating a share purchase.