Country Report Madagascar June 2011

Foreign trade and payments: Tourism suffers a blow

Tourism income and foreign-exchange earnings have been threatened by serious new problems facing the national carrier, Air Madagascar. The EU has banned the airline from serving its two European destinations, Paris and Marseille, with its two leased Boeing 767 aircraft, which have been deemed no longer compliant with EU safety standards. The company insists that the two planes remain in working order and can be reallocated to other routes, such as Guangzhou, in China. However, it admits that they no longer satisfy the more stringent safety requirements of the EU. The ban applies only to these two aircraft, so if Air Madagascar is able to lease other planes it will be able to continue serving Europe, a key source of tourists for Madagascar. In the longer term, other carriers may take up the slack left by the disruption to the company's flights, but the short-term impact on tourism flows may be significant.

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