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Contract between the State and Ravinala Airports

Air Transport : Contract between the State and Ravinala Airports

Air Transport : Contract between the State of Malagasy and Ravinala Airports

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

Details for useful purposes

To dispel possible doubts and suspicions, they bring us some 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 that of Transport, wanted to provide other essential elements on the adjustments 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 which caused a scandal under the HVM regime. Joël Randriamandanto admitted “that such an investment (220 EUR million) will take time to grow and bring in profits. But it has been established that from a certain threshold of financial profitability and when Ravinala Airports earns more than 20% of this level, the State can inherit the infrastructure in place.

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

Multiply the number of flights

“It is therefore up to us to increase the number of flights to and from Antananarivo to arrive at this point of balance as soon as possible. In order to shorten this tangent. Which explains why no deadline has been set for the contraction invoked. Everything will depend on the efficient operation of the airport”.

Then, on fixed concession fees which pass from 3 to 4 EUR million. Or an increase of the order of 33%.

“This is an annual financial contribution from Ravinala Airports to the Malagasy State” underlines Joël Randriamandanto. This periodicity raised many questions on Wednesday in Iavoloha. In addition, according to him, “there are variable royalties, to be calculated based on the return on investment. We also obtained that they are carried out not at 20% of the achievement of the index considered, but below, following the steps taken ». Either, clear, the state can collect tax revenues sooner than expected.

For the benefit of Air Madagascar

Ensuite « the abandonment of debts for the benefit of Air Madagascar was accepted. Just like the entry of State representatives to the Board of Directors of Ravinala Airports. A right to review the evolution of the company, effective participation in the decisions to be made” enthuses Joël Randriamandranto.

For a reduction in ticket prices

Finally, we confirmed the price reductions relating to royalties for the development of airport infrastructure, RDIA, so as not to penalize travelers with exorbitant plane ticket costs, making the Madagascar destination 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 the President of the Republic Andry Rajoelina announced.

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