Madagascar wants more foreign firms to compete with state airline

Madagascar has held talks with foreign companies to introduce new air routes to the Indian Ocean island and is open to allowing foreign companies to compete with state-run Air Madagascar on domestic routes, the tourism minister said. A four-week strike by Air Madagascar employees has hit the island nation's tourism sector, emptying beaches and tropical rainforests of visitors hoping to catch a glimpse of rare lemurs or flora and fauna unique to the island nation.
Ulrich Andriantiana, the tourism minister, said the strike had shown it is vital for the country to reduce its dependence on Air Madagascar, which has a de facto monopoly on domestic flights and some international routes. Air France, Kenya Airways, Air Mauritius are among some of the carriers that have some flights to the island state. "It's not good to have a monopoly for the national (airline) because some sectors are depending on Air Madagascar and if Air Madagascar doesn't work very well, every sector will fall down," Andriantiana told Reuters in capital Antananarivo.
"That's why we need to go further (down) the liberalisation (route) for the sector." Air Madagascar employees began their strike last month in protest against corruption and bad management at the loss-making airline. According to a draft budget proposal seen by Reuters last week, the state plans to spend 28 billion ariary ($8.76 million) on Air Madagascar in 2015. The carrier's board this month sacked its chairman, a close ally of President Hery Rajaonarimampianina, and vowed a new strategy to keep it free from political interference.
However, employees have refused to return to work until all their demands are met, something the board said would take time. Air Madagascar did not reply to Reuters requests for comment. The company employs about 2,000 people and serves 13 international and 14 domestic routes. Andriantiana said the government has held talks with foreign airlines to introduce new international routes that would open up markets in Africa, Asia and north America. Most visitors to the former French colony come from Europe, tour operators say.