Air Mauritius opts for voluntary administration
Air Mauritius opts for voluntary administration. The airline is the national airline of Mauritius and is based at Port Louis. The airline had been struggling financially and situation was made more dire with coronavirus. The 53 year old airline was hard hit by coronavirus and has decided to go for voluntary administration.
Air Mauritius has filed for voluntary administration. The airline has been struggling financially for quite some time now. This adding on with the effects of coronavirus has resulted in the airline going for administration. Air Mauritius was the first airline in the world to operate both A330neo and A350 aircraft.
The pandemic has affected the tourism sector in Mauritius which brings significant amount revenue and offers a lot of jobs. This was as a result of the airline grounding its fleet and suspending its flights.
The airline in a statement had said in the starting of the year its board set up a committee to review the workings, financial difficulties and the business model of the airline and draft an action plan for the airline to grow in the future.
The travel bans imposed globally and restrictions has had the airline ground its 13 strong fleet and suspends its services which has further deteriorate its financial resources.
“In these circumstances, it is expected that the company will not be able to meet its financial obligations in the forceable 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.”A statement in the letter of communication released by Air Mauritius
The airline also predicted due to the uncertainty of the situation the airline operations will not pick until the late 2020.
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Impact of Air Mauritius
The airline operates to 22 destinations with a fleet of 13 aircraft. It received its first A350 in October 2017 and its first A330 Neo in April 2019. It was the first airline in the world to operate these two variants together.
It is a major source of economy for the country as being a tourist destination, it plays a major role for brining in tourists. The airline also carries around 44,000 tons of cargo annually which goes to show how big an impact it has on the Mauritius economy.
It is unclear if Air Mauritius will operate on a much smaller scale or another new airline will be started. However it is, the country will need an airline to support its economic growth by either tourist traffic or by transportation of cargo for various business.
Air Mauritius is another airline to go into administration after South African Airways and Virgin Australia. The economic impact the pandemic is threatening the survival of airlines. Air Mauritius even though a small airline by means of number of aircraft was very important to the growth of the country.