Air transport : Contract between the State and Ravinala Airports

Contract between the State and Ravinala Airports

Air transport : Contract between the Malagasy State and Ravinala Airports

After the signing of the contract between the State and Ravinala Airports, the Minister of Tourism Joël Randriamandranto provided some clarifications to clarify things.

Clarification for useful purposes

To dispel possible doubts and suspicions, we are brought a few details. On the sidelines of the official commissioning ceremony of Terminal C at Ivato Airport, under the banner of Ravinala Airports, Joel Randriamandranto, Minister of tourism, who represented the Transport Representative, wished to provide other essential elements on the alterations made to the clauses of the initial contract concluded by the Malagasy State with Ravinala Airports.

First, on the duration of the twenty-eight-year concession that caused a scandal under the HVM regime. Joël Randriamandranto admitted “than such an investment (220 EUR million) will have to take time to grow and bring in profits. But it was acquired that from a certain financial break-even point and when Ravinala Airports earns more than 20% of this level, the state can inherit the infrastructure in place.

That is why it was said to Iavoloha by the President of the Republic, Andry Rajoelina, thatan agreement in principle on the reduction of the duration in time of this lease has been reached.”

Multiply the number of flights

“It is therefore up to us to multiply the number of flights to and from Antananarivo to reach this point of equilibrium as soon as possible. In order to shorten this tangent. This explains why no deadline has been set for the alleged contraction.. Everything will depend on the proper operation of the airport”.

Then, on fixed concession fees which change from 3 to 4 EUR million. Let be an increase in the order of 33%.

"This is an annual financial contribution from Ravinala Airports to the Malagasy State" says Joël Randriamandranto. This periodicity raised many questions on Wednesday in Iavoloha. In addition, according to him, "there are variable fees, to be calculated on the basis of the return on investment. We have also ensured that they are not carried out at 20% the achievement of the index under consideration, but below, following the steps taken ». Either, in plain language, the state can collect tax revenues earlier than expected.

For the benefit of Air Madagascar

Then " the abandonment of debts in favour of Air Madagascar has been accepted. Just like the entry of state representatives to the Board of Directors of Ravinala Airports. A right of scrutiny over the evolution of the company, effective participation in the decisions to be taken, "enthuses Joël Randriamandranto.

For a drop in ticket prices

Finally, tariff reductions for Airport Infrastructure Development Charges were confirmed, RDIA, so as not to punish travellers with exorbitant costs of airline tickets, making the destination Madagascar less attractive. « The RDIA for domestic flights goes from 20,80 to 18 EUR. For regional and international flights, from 41,60 to 38 Euros » as announced by the President of the Republic Andry Rajoelina.

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