VZCZCXYZ0005
OO RUEHWEB

DE RUEHAN #0177 0531307
ZNR UUUUU ZZH
O 221307Z FEB 06
FM AMEMBASSY ANTANANARIVO
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2329
INFO RUEHFR/AMEMBASSY PARIS 0597
RUEHPL/AMEMBASSY PORT LOUIS 0148
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS ANTANANARIVO 000177 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
PARIS FOR D'ELIA 
DEPT FOR AF/E MBEYZEROV 
DEPT FOR EB/TRA AND EB/CBA 
 
E.O. 12958: N/A 
TAGS: EAIR BEXP ECON EFIN PREL MA
SUBJECT:  Air Mad Privatization Delayed, Boeing Interest 
 
Ref:  05 Port Louis 744 
 
¶1. (SBU)  Air Madagascar Commercial Senior Vice President 
Andriamialisoa told EconOff February 14 that Air Madagascar, 
the national airline, would continue to be managed by 
Lufthansa Consulting for an additional two years.  He 
confirmed a once-planned privatization date of May 2006 had 
been cancelled by the GOM in favor of keeping the Lufthansa 
team in place.  Andriamialisoa, a 30-year veteran with the 
airline, noted with pride the turnaround in recent years 
leading to profits in 2004 and 2005, but declined to further 
comment on the privatization.  Media reports indicate the 
GOM has pulled the tender offer for Air Madagascar while it 
considers other options. 
 
¶2. (SBU)  Turning to aircraft acquisition, Andriamialisoa 
confirmed that a consortium of Indian Ocean carriers -- Air 
Madagascar, Air Seychelles, and Air Mauritius - was in talks 
to improve their negotiating position with suppliers 
(reftel).  He said Air Mad and Air Seychelles had "Boeing 
cultures," and thus were inclined to buy from the American 
producer.  Air Mauritius, however, had a "mixed culture of 
Boeing and Airbus," so it was less certain which direction 
they might go.  Andriamialisoa noted Air Mad needed only one 
new long-haul aircraft in the medium term. 
 
¶3.  (SBU)  EconOff asked if Air Madagascar management needed 
further information or assistance in contacting Boeing. 
Andriamialisoa was grateful for the offer, but noted the 
next move was up to Air Mauritius. 
 
¶4. (U) Background:  Air Madagascar has been operated by 
Lufthansa Consulting under a management contract since 
September 2002.  The GOM owns 89.58 percent of the airline, 
with 4.78 percent owned by French firm Socit Nationale de 
Participation (SONAPAR), 3.48 percent by Air France, 1.91 
percent by the Malagasy firm Assurance Ny Havana, and 0.25 
percent by Air Mad staff and other private investors. 
 
MCGEE