Tag Archives: Air Mauritius

As Mauritius re-opens international borders and tourism starts to rebuild post COVID-19, the government of the Republic of Mauritius is injecting Rs12 billion (US$280million) into Air Mauritius via a loan to provide long term stability for the company. Ken Arian, CEO of Airports Holdings Limited, the parent company of Air Mauritius said: “This new financial arrangement provides Air Mauritius with the stability to rebuild and play a central role in the government’s economic development and tourism plans. It is a vote of confidence in our staff and provides them and our tourism industry with reassurance for the future. Air Mauritius is an iconic global brand and will continue to provide short and long-haul passenger and cargo connectivity to some of our most important global markets.” Passenger and cargo flights will operate between Mauritius and Paris, London, Johannesburg, Mumbai, Antananarivo and Reunion with connecting services available globally. Additional capacity and international routes will be added to meet demand. Air Mauritius expects Hong Kong, Kuala Lumpur and Perth to be introduced later. Domestic services to and from Rodrigues will resume in November 2021. As part of the new structure, the network fleet has been consolidated from 15 aircraft to 9 aircraft – 4 x A350-900 and 2 x A330-900neo wide-bodied fleet. The remaining 3 aircraft are ATR72-500 to service domestic and regional routes. Air Mauritius now has one of the youngest widebody fleets in the world.

Struggling Air Mauritius has entered voluntary administration after the board resolved that with the coronavirus grounding it would not be able to meet its financial obligations in the foreseeable future. Air Mauritius had already embarked on a transformation programme in January this year under which it was reviewing its business model in a bid to secure sustainability. Air Mauritius has become the second airline to enter administration proceedings in as many days voluntarily. Yesterday Australian carrier Virgin Australia also entered voluntary administration caused by the current crisis. In a company statement the airline’s board of directors state 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 company’s revenue base”. Air Mauritius was forced to suspend flights at the start of April because of the coronavirus restrictions. The airline’s board came to a decision following “a complete erosion of the company’s revenue base.”  In its letter, the airline stated that its entire revenue base had been eroded. The erosion has been caused by a decrease in demand tied to many different travel bans enacted by separate national governments. The airline believes that demand will not begin to return until the end of 2020. “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,” the airline says.