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The airline was established in 1962 under the name "Madair", which shortly after was changed to "Air Madagascar". The founder of the airline were the state of Madagascar and Air France. Following a political crisis starting in the year 2000, the airline experienced significant difficulties and was finally restructured under the lead of Lufthansa Consulting GmbH. A complete rebranding in 2004 included a new corporate design and logo. The logo resembles the [[Ravenala]] palm tree, which is endemic to Madagascar and also the heraldic tree of Madagascar.
To passengers which choose Air Madagascar for their international inbound and return flight, the airline offers a 30% - 50% discount on domestic flights (except to/from Tulear). Those domestic flights are preferably booked before the trip, but can also be arranged in one of the domestic Air Madagascar offices (see list below).
In the odd case that a flight is cancelled, Air Madagascar takes great care of the stranded passengers by arranging taxi transfers to/from a hotel and providing meals, all on the expenses of the airline. Usually the replacement flight will leave as early as possible on the next day.