Adding to the list of airlines suffering wounds from the global COVID-19 pandemic, Air Mauritius has now entered voluntary administration.
In a statement published on social media, the airline confirmed that they have been placed into voluntary administration; this was after not being able to meet current and future financial obligations, as a result of COVID-19 disruptions.
Air Mauritius says that the virus, and the consequent closure of borders and reduction in travel options, has eroded their entire revenue base. Additionally, the uncertainty as to when travel bans will be lifted has damaged their ability to plan for the future.
Although it has been suggested travel will partly resume at the end of 2020, profitable passenger numbers are not expected until later; with destination availability also being a potential contributing factor.
“There is uncertainty as to when international air traffic will resume and all indications tend to show that normal activities will not pick up until late 2020.”Air Mauritius
Under sections 215 and 216 of the Insolvency Act, Mr A. Sattar Hajee Abdoula, FCA and Mr. Arvindsingh K. Gokhool, FCCA of Grant Thornton have been appointed as administrators of the airline. The announcement will come into effect from Wednesday 22nd of April 2020 at 14:00 hours.
Headquartered at the Air Mauritius Centre in Port Lous, Mauritius, the airline was founded in 1967, as part of a joint venture between BOAC, Air France and the Mauritian Government. As of March 2019, Manraj Dharam Dev, G.O.S.K held the chairman position and Buton Indradev was the officer in charge.
Fleet wise, Air Mauritius holds a comprehensive list of Airbus aircraft to their name, consisting of 2 A319s, 2 A330-200s, 2 A330-900s, 2 A340-300s, 2 A350-900s and 3 ATR 72-500s. The airline was the first to operate both the A350 and A330neo – the widebody family that Airbus promotes aggressively as being the leading options for airlines.
At this time, it is unknown what will happen to Air Mauritius and what administration options are being assessed; however a transformation program had been worked on since its launch in January, to secure profitability and security.
Source: Air Mauritius Facebook, Reuters
Feature image: Airbus