Air Mauritius enters voluntary administration

Thursday, April 23, 2020

The coronavirus pandemic has led another flag-carrier Air Mauritius to enter voluntary administration.

The week has been tough for airlines and the carrier follows Virgin Australia in making the move, however, South African Airways is teetering on the edge.

In January this year Air Mauritius had already embarked on a transformation programme  under which it was reviewing its business model in a bid to secure sustainability bur this work appears to have been unsuccessful.

The board of directors at Air Mauritius said that while “substantial progress” was made in developing its action plan, the closure of borders and halting of air services because of the coronavirus has led to a “complete erosion of the revenue base”.

Due to coronavirus restrictions Air Mauritius was forced to halt all flights at the start of April and the suspension was extended on April 9th.

So no flights are  now expected until at least May 15th.

There is no surety  as to when international air traffic will resume and all indications tend to show that normal activities will not pick up until late 2020.

Considering these circumstances, it is expected that the company will not be able to meet its financial obligations in the foreseeable future.

Therefore the  board therefore concluded to put the company under voluntary administration in order to safeguard the interests of the company and that of all its stakeholders.

Administrators from Grant Thornton have been appointed.

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