Air Mauritius has joined the list of airlines that have gone under voluntary administration in order to safeguard their business interests and those of stakeholders.
In a communique, the airline’s Board of Directors said the decision was made in light of the impact of COVID-19 on the global aviation industry.
The Airline has been hit by travel restrictions and closure of borders forcing it to shut down its domestic and international flights. The decision has led to complete erosion of the Company’s revenue base.
As the COVID-19 pandemic gathers pace, it is uncertain when international air traffic will resume, with indications that the situation will not normalize until late 2020.
In these circumstances, directors of Air Mauritius maintain that the firm will not be able to meet its financial obligations, hence the decision to place the airline under voluntary administration.
Mr A. Sattar Hajee Abdoula and Mr Arvindsingh K. Gokhool of Grant Thornton have been appointed as administrators of the Company with effect from April, 22nd, 2020.
Established in 1967, Air Mauritius is the national airline of Mauritius, based at Sir Seewoosagur Ramgoolam International Airport in Port Louis.
As a leading employer of the island economy, Air Mauritius provides for around 3,000 Mauritian jobs and ferries 40,000 tons of cargo annually. Air Mauritius also plays a key role in the economic development of Mauritius.
It is a scheduled carrier operating in the Indian Ocean, serving a network covering Asia, Africa, Europe and Australia.
During the time Air Mauritius will be under administration, there will be a moratorium on any recovery action by creditors against the company. The airline has also stopped the enforcement of personal guarantees against directors.