Madagascar Airlines (MD, Antananarivo) plans to complete its phased transition back to the historic Air Madagascar brand by October 31, 2026, as part of a broader turnaround programme launched following the appointment of new executive management in May this year.

In a statement, the airline said the transformation goes beyond rebranding and includes operational, organisational, commercial, and financial restructuring, with priorities including tighter cost controls, improved governance, stronger customer relations, and a controlled expansion of operations.

"Air Madagascar is deeply woven into our nation's history, mobility, and aspirations. Our responsibility goes beyond reviving a brand; we are rebuilding a reliable, well-managed airline that drives the national economy and earns the public's trust," CEO Rado Rabarilala said during a press briefing on September 11. "This is not a symbolic relaunch. We are building a responsible recovery grounded in realistic choices, rigorous governance, and our absolute commitment to follow through."

The carrier's restructuring plan has been approved and a roadmap established, he said. It is also working to optimise its flight schedule, improve governance, and consolidate strategic partnerships as part of the six-month transformation programme.

On the network side, the airline has resumed flights to Moroni International in the Comoros while preparations are underway to restore services to St. Denis de la Réunion, China, Bangkok Suvarnabhumi, and Marseilles.

The turnaround also includes training for younger employees, expanding flight and ground crew capabilities, fleet modernisation, and the controlled, phased expansion of operations, the statement said, without providing clearer insight into the fleet choices for international expansion.

The airline currently operates an all-turboprop fleet of four ATR72-500s and one ATR72-600.

The Madagascar Tribune reports that the Malagasy state has moved to write off its own claims on Air Madagascar, which reportedly still account for half of an estimated USD100 million total debt, as a step toward cleaning up the balance sheet ahead of the brand's return.

It was not immediately clear whether the rebrand would be a purely commercial marketing change within the same legal entity – Madagascar Airlines choosing to trade as Air Madagascar – or a reactivation of the old Air Madagascar legal entity with its unresolved liabilities. ch-aviation has requested clarity from the airline.

The backstory

Air Madagascar rebranded to Madagascar Airlines as part of a court-supervised restructuring (redressement judiciaire) after the flag carrier and its domestic subsidiary Tsaradia accumulated massive debts and were placed under receivership in October 2021. Madagascar Airlines formally launched operations on November 6, 2021, initially using the existing air operator's certificate (AOC) and licences of Air Madagascar and Tsaradia while both remained under receivership.

The primary reason for the rebrand was to create a "new" operational entity that could continue flying while the legacy companies underwent judicial restructuring to address the USD100 million debt pile, about 60% of which was owed to the Malagasy state.

Madagascar Airlines obtained its own AOC and operating licence on April 17, 2023, allowing it to operate as a fully-fledged carrier, separate from the two stricken airlines.

The World Bank provided targeted support to Madagascar Airlines, including a USD25 million loan (part of a larger USD100 million facility to the state) earmarked for fleet restructuring, IT/digital transformation, and operational stabilisation under the World Bank backed Phénix 2030 plan led by former CEO Thierry de Bailleul from late 2023.

Under this plan, costly long-haul ACMI operations were halted, regional routes curtailed, and the carrier refocused on domestic services to stop cash bleed and begin repaying creditors. By October 2023, the airline's debt had reportedly been reduced to USD43 million.

In October 2025, de Bailleul announced he was stepping back from his duties as CEO with immediate effect, citing a "climate of mistrust" created by a social media campaign by pilots calling for his resignation, against a backdrop of wider political unrest and a change of government that followed a military coup in Madagascar in October 2025. The move was treated by the board as an effective resignation, despite de Bailleul's insistence that his consulting contract remained in force.