Mauritius Flag Carrier Faces Severe Financial Turmoil as Ambitious 2025 Restructuring Plan Aggressively Targets Airbus Contracts and Urgent Workforce Expansion

Published on March 31, 2025

Mauritius’s national airline, Air Mauritius, is in the throes of severe financial turmoil, having reported catastrophic losses of Rs 15.5 billion for the year ending March 2024 — a crisis that has pushed the carrier to the brink. In response, newly appointed Chairman Kishore Beegoo has unveiled an ambitious and aggressive 2025 restructuring plan aimed at reversing the damage. The strategy takes direct aim at long-term, unfavorable Airbus contracts that have drained resources, while also fast-tracking urgent workforce expansion, including hiring engineers and technicians in April 2025 to stabilize operations and restore technical capabilities.

In a sobering update for the Mauritian aviation sector, Air Mauritius Board Chairman Kishore Beegoo publicly disclosed the national airline’s precarious financial standing in a press conference held in early 2025. Appointed in January 2025, Beegoo did not shy away from the stark reality of the company’s financial woes. The newly installed chairman revealed that Air Mauritius had accumulated losses of Rs 15.5 billion — the equivalent of approximately €317 million — for the financial year ending March 2024.

This candid disclosure marked a dramatic departure from previous opaque communications about the airline’s fiscal condition. According to Beegoo, these losses had not only undermined the operational stability of the airline but had also stifled future investment opportunities and tarnished the legacy of one of Africa’s most prominent island-based carriers.

Root Causes: Aircraft Mismanagement and Unfavorable Deals

Chairman Beegoo’s press briefing served as both a revelation and a postmortem of decisions made over the past few years. He highlighted several strategic missteps taken by former leadership, particularly those involving aircraft acquisitions and leasing arrangements that failed to optimize the company’s resources.

One controversial decision involved the sale of more efficient aircraft only to lease back older Airbus A330 models. These outdated aircraft were less fuel-efficient and more expensive to maintain, further compounding operational costs at a time when the airline was already burdened by debt.

Even more financially damaging was an overambitious and poorly structured order of Airbus A350s. Beegoo indicated that the airline was locked into long-term contracts under terms that were not economically viable, especially given the global downturn in travel during and after the COVID-19 pandemic. These contracts, signed under previous management, have now become long-term liabilities threatening the airline’s sustainability.

Equity Conversion and Finalization of 2024 Financials

One important development that Beegoo mentioned was the long-overdue conversion of the airline’s debt into equity, which was finalized in February 2025. This move was necessary for closing the books on the 2024 financial year. It also provided a modest breathing room for the new leadership to push forward with reforms.

The conversion, while helpful, does not eliminate the burden — rather, it rearranges the obligations in a way that can potentially attract new investment and stabilize the balance sheet. The move was only possible due to support from its owners: Airport Holdings Ltd (AHL), with a 51% share owned by the Government of Mauritius, and the remaining 49% controlled by the Mauritius Investment Corporation (MIC), a subsidiary of the Bank of Mauritius.

Leadership Reshuffle and Strategic Recruitment

Under Kishore Beegoo’s leadership, Air Mauritius is pivoting toward a more aggressive restructuring plan aimed at cost control, talent realignment, and operational modernization. A major element of this strategy is the reinstatement of Laurent Recoura as Chief Commercial Officer.

Recoura, who stepped down in July 2024 following a controversial suspension in May amid a dispute with former CEO Charles Cartier, brings considerable experience and familiarity with Air Mauritius’s inner workings. Beegoo believes that Recoura’s return will help drive a more competitive commercial strategy in 2025.

Furthermore, the chairman confirmed the recruitment of three financial experts tasked with overhauling cost control systems and instituting more transparent financial reporting mechanisms. These professionals are already at work evaluating past expenditures, renegotiating supplier contracts, and identifying wasteful practices that contributed to the 2024 financial collapse.

In April 2025, Air Mauritius will also bolster its technical workforce by hiring 12 new technicians and 16 engineers. This expansion will be supported through a newly signed technical partnership with Airbus, which will provide training and maintenance support to elevate the airline’s engineering standards.

Governance Overhaul and the New Board of Directors

One of the most notable changes in the airline’s governance structure was the appointment of a brand-new Board of Directors on January 13, 2025. This fresh leadership structure reflects an urgent need for reform and marks a decisive move away from the leadership of former Chairperson Marday Venketasamy.

Chairman Beegoo, with a background in public service and finance, has committed to a transparent turnaround strategy with clearly defined deliverables. His early messaging has resonated with both airline employees and industry observers, who acknowledge the need for radical change if Air Mauritius is to reclaim its position in the competitive African and Indian Ocean aviation market.

The new Board’s focus will also be on strengthening corporate governance, enhancing shareholder engagement, and working closely with aviation regulators to restore trust in the national carrier.

Strategic Goals for 2025: Reviving Air Mauritius

While acknowledging the deep financial wound, Beegoo emphasized that Air Mauritius is not beyond saving. Instead, he positioned 2025 as the year of aggressive correction. Some of the strategic pillars of the airline’s revival include:

• Route Optimization: Reviewing and revising loss-making routes while strengthening profitable destinations across Africa, Asia, and Europe.
• Fleet Rationalization: Phasing out inefficient aircraft and renegotiating leasing terms for newer, cost-efficient planes.
• Workforce Empowerment: Investing in technical staff, engineering capabilities, and retraining programs to improve internal operations.
• Commercial Realignment: Launching new sales initiatives and travel promotions under the reinstated leadership of Laurent Recoura.
• Airbus Partnership: Leveraging Airbus’s technical support to improve maintenance reliability and reduce downtime.

Government Role and Public Accountability

Given that the airline is primarily government-owned, Air Mauritius’s performance is of national interest. The Mauritian public, who have seen taxpayer funds used repeatedly to prop up the airline, are now demanding results.

The Government of Mauritius has publicly endorsed the new restructuring plan but has signaled that future support will be conditional on demonstrable improvements. In response, Chairman Beegoo has committed to quarterly updates on the financial and operational progress of the airline, an unprecedented move toward transparency in the airline’s recent history.

Air Mauritius faces severe financial turmoil with Rs 15.5 billion in losses, prompting an aggressive 2025 restructuring plan that targets costly Airbus contracts and fast-tracks critical workforce expansion.

The Path Ahead

The challenges ahead for Air Mauritius remain steep. Competition from regional carriers, volatile fuel prices, currency fluctuations, and post-pandemic market shifts are all external threats that will continue to test the airline’s resilience.

However, industry analysts suggest that if the restructuring measures are implemented with discipline and if political support remains steady, Air Mauritius could begin stabilizing by mid-2026 and possibly return to profitability within three years.

For the island nation of Mauritius, whose economy heavily depends on tourism, a healthy national carrier is critical. The success or failure of Air Mauritius’s 2025 turnaround plan will therefore have implications that reach far beyond the balance sheets — it will impact jobs, tourism flows, national pride, and investor confidence in the country’s broader infrastructure sector.

With Rs Fifteen Billion in accumulated losses, Air Mauritius stands at a crossroads. But with new leadership under Chairman Kishore Beegoo, a revitalized Board of Directors, and a bold restructuring roadmap, the national airline is fighting back. The coming months will be crucial as the airline implements its recovery blueprint — hiring technical staff, optimizing its fleet, and seeking to repair the financial damage caused by years of mismanagement.