Air Mauritius declares insolvency, enters administration

NadyaEugene

After halting all its domestic and international flights due to the coronavirus crisis, Air Mauritius is expecting not to meet its financial obligations in the foreseeable future. On April 22, the Mauritian flag carrier announced entering into voluntary administration. 

Air Mauritius was facing financial troubles even before the coronavirus outbreak. But the COVID-19 pandemic made things even worse and has led to a “complete erosion of the company’s revenue base”, the airline outlined in its statement. 

The uncertainty surrounding the resumption of international air traffic, and indications it would be no sooner than in late 2020, did not help it either. In response to the outbreak, the airline has grounded all its international and domestic flights. 

However, the virus was not the only cause to blame. In the company’s financial statement for 2018/2019 (for the period up to March 31, 2019), Air Mauritius management recognized that the company’s business model was no longer sustainable, as the company posted over €21 million loss. In the subsequent nine months, April to December 2019, it topped the loss by an additional €14 million. 

In an attempt to turn the airline around, the company’s board established a Transformation Steering Committee in January 2020. 

Air Mauritius had a fleet of a total of 13 aircraft: 3 ATR 72, 2 Airbus A319, 4 Airbus A330, 2 A340, and 2 A350XWB, planespotters.net data indicates. At the end of its last financial year, it flew to 22 destinations Africa, Asia, Australia and Europe.

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