Air Mauritius Enters Voluntary Administration
Air Mauritius has entered voluntary administration after coronavirus-related disruptions made it impossible for the airline to meet its financial obligations, its board said today.
The 52-year old carrier, which flies 1.7 million passengers a year to 22 destinations, including London, said the pandemic had struck just as the company was seeking to change its business model to address existing financial problems.
It said: “Unfortunately travel restrictions and the closure of borders in all our markets and cessation of all international and domestic flights in an unprecedented crisis has led to a complete erosion in the company’s revenue base.
“Furthermore, 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.
“In these circumstances, it is expected that the company will not be able to meet its financial obligations in the foreseeable future. The board, therefore, took the decision to place the company under voluntary administration in order to safeguard the interest of the company and that of all its stakeholders.”