Flight operations at Madagascar Airlines (MD, Antananarivo) are uncertain after its pilot union demanded the resignation of CEO Thierry de Bailleul, with at least one lessor demanding the return of its aircraft amid nationwide political unrest, well-placed sources at the airline have told ch-aviation.

According to a leaked letter seen by ch-aviation, ACIA Aero on October 15 formally requested that its two ATR72-500s, 5R-EJH (msn 900) and 5R-EJK (msn 904), are ferried out of Madagascar immediately to a safe jurisdiction. ACIA Aero declined to comment when approached by ch-aviation.

This follows a statement issued by the airline late on October 15 in which it announced that de Bailleul had decided to "step back from his duties, effective immediately", following "internal communication that has created a climate of tension within the company. This decision, made in a spirit of responsibility, aims to safeguard the company’s stability and ensure the continuity of the national air service amid an already challenging social and economic environment," the airline stated.

Sources clarified to ch-aviation that de Bailleul had not resigned but decided to take a break for a couple of weeks to allow the political climate to cool down and give the board time to stabilise the airline.

Madagascar Airlines said de Bailleul had proposed that the carrier's executive committee "collectively ensure operational continuity under the supervision of the board and the relevant authorities, to maintain the normal operation of flights and uphold commitments to the company’s partners". It added: "In his message to employees, he expressed deep concern over the potential consequences of prolonged managerial instability on cash flow, investor confidence, and the long-term sustainability of the airline."

ch-aviation understands that the vague communication and the board's reluctance to contradict the pilots had also prompted another lessor to warn that it is actively considering the return of its aircraft.

According to ch-aviation data, Madagascar Airlines leases two ATR72-500s and one ATR72-600 from Abelo Capital Aviation; two ATR72-500s from ACIA Aero; and a fifth ATR72-500 from Falko Regional Aircraft. ch-aviation reached out to the lessors for comment. Abelo said it had engaged with the airline and was not asking for its aircraft to be moved.

The pilots, frustrated over being reassigned from long-haul operations to ATR - Avions de Transport Régional aircraft as part of the airline's World Bank-backed restructuring plan, had demanded de Bailleul's departure through their union, but this was not supported by the rest of the staff. To ease tensions, de Bailleul told the board and the government that he was temporarily stepping aside until the situation was resolved.

Only the board - not the union - has the authority to decide a CEO's position, and the board extended de Bailleul's contract in June to provide continuity of the airline's ongoing restructuring. The pilots' action is said to form part of the countrywide anti-government protests, where similar pressures are being applied across state-owned companies.

Madagascar Airlines has reported "a gradual and measurable recovery" over the last 18 months under de Bailleul's leadership, with a return to financial break-even expected by the end of 2025.

"Capacity has increased by nearly 66% in less than two years, surpassing 2019 levels this year. The fleet has expanded to five operational aircraft, compared with barely more than one at the end of 2023. Lessors’ confidence has been successfully restored. International lenders and institutional partners, for the first time in their history, agreed to finance a recovery plan for a national airline. On-time performance within 15 minutes reached 80% across 2025. Quarter after quarter, losses have decreased, with a return to financial balance expected by the end of this year," the airline said.

Madagascar has been gripped by social unrest that started with widespread youth-led protests on September 25, triggered by severe shortages of water and electricity in the capital Antananarivo and other cities. On October 11-12, the crisis culminated in a de facto coup when an elite military unit, CAPSAT, seized power, suspended the constitution and took control of the government. This followed the Malagasy parliament voting to impeach President Andry Rajoelina, who had attempted to dissolve the parliament and then fled the country for safety.

Several international carriers, including Air France, Emirates, Air Mauritius, and Kenya Airways have cancelled flights to the island since the weekend, but according to sources on the ground the security situation in Madagascar had improved by October 16, with curfews lifted and no threats to airport operations.