Madagascar Airlines is all set to join International Air Transport Association (IATA)’s Billing and Settlement Plan (BSP) by July 2023 as and when it can settle the $3.5 million liability in unflown tickets issued by Air Madagascar and Tsaradia.
The BSP is a worldwide program by IATA meant to facilitate and simplify the selling, reporting, and remitting procedures of Accredited Passenger Sales Agents. The program will improve Madagascar Airlines' financial control and cash flow.
Speaking at the Syndicat des Enterprises des Tour Operating (SETO) forum in Deauville, France, Thierry de Bailleul, CEO, Madagascar Airlines said: “We will not open the BSP until we have this sum provisioned. So be reassured: any ticket issued is refundable and will be refunded at the request of each of you.
Just last month Madagascar Airlines obtained its own Air Operator's Certificate (AOC) and Operating License (OL) from the country's civil aviation authority. The airline took over the functions of Air Madagascar and its subsidiary Tsaradia and will operate scheduled passenger flights as the island nation's flag carrier.
Madagascar Airlines plans to resume flights to Asia this year and launch flights to several new destinations in the coming years. In its new business plan, the airline will discover management strategies to offer passengers low fares while covering its operating costs.
The Malagasy government announced earlier this year that it expected the delivery of three Embraer E190s by the end of Q2 2023. The jets will be leased from Azorra Aviation and deployed on selected domestic flights from the capital.
"We are also studying a certain number of solutions to start long-haul operations independently this year with our own aircraft. In the new business plan, we will have to find the management model so as to have both reasonable fares but at the same time high enough to cover our costs,” de Bailleul added.