Madagascar Airlines CEO Thierry de Bailleul has resigned from his position with immediate effect, as the country is rocked by a military coup and the desertion of its former president.
In a statement, the board noted that certain “internal communications” involving de Bailleul had created a “climate of tension” within the company.
These communications were not explained, but were cited as the primary reason for the CEO’s resignation.
“This decision, made in a spirit of responsibility, aims to safeguard the company's stability and ensure the continuity of the national air service, amid an already challenging social and economic environment,” the company said of de Bailleul’s resignation.
In an outgoing message to employees, de Bailleul is said to have expressed “deep concern” over the potential consequences of prolonged managerial instability on cash flow, investor confidence and the long-term sustainability of the airline.
The resignation of de Bailleul, who had led the airline since December 2022, comes at a time of continued social and political unrest in Madagascar, as covered by Airline Economics.
On October 12, the Madagascar Armed Forces overthrew the government of President Andry Rajoelina, following months of protests triggered by power cuts and water shortages.
Colonel Michael Randrianirina, the head of an elite army unit that joined in the protests and sealed Rajoelina’s ousting, has since been named as the country’s new president.
Despite the unrest and the precarious political situation, Madagascar Airlines said that over the last 18 months, it has achieved a “gradual and measurable” recovery in its operational and financial health.
Offered capacity has increased by nearly 66% in less than two years, surpassing 2019 levels this year.
Its fleet has expanded to five operational aircraft, compared with barely more than one at the end of 2023.
Lessors' confidence has been “successfully restored”, the airline said, such that international lenders and institutional partners have agreed - for the “first time in their history” - agreed to finance a recovery plan.
The airline’s losses have narrowed, and the company expects a return to “financial balance” by the end of this year.