The board of directors of Air Mauritius Limited met this Wednesday to disclose the state of the company’s finances due to the COVID-19 pandemic. Then, it was reported that the operational disruptions related to the coronavirus make it impossible for the airline to meet its financial obligations “in the foreseeable future.”
In a press release issued later, the board recalled that in December of last year it had established a Transformation Steering Committee to face the company’s financial difficulties and develop a business model that would allow it to overcome the various threats: volatility of the currency, competition, and fuel price. The Transformation Committee expected to present its renewed model in April, after recording a net loss of $16 million in its last nine months.
But the COVID-19 pandemic turned everything upside down, with border closings and travel restrictions impacting the industry. Given the economic conditions and forecasts, the board decided to put the company under voluntary administration, Air Mauritius said in the press release, to safeguard the interests of the company and shareholders. As a result, Sattar Hajee Abdoula and Arvindsingh Gokhool, both from consultancy firm Grant Thornton, were appointed directors under the terms of the Insolvency Act.
The airline, founded 52 years ago, transports 1,700,000 passengers annually to 22 destinations on four continents. It has four A330s, two A340-300s and two A350-900s in its fleet, as well as two A319-100s and three ATR 72-500s for its regional and domestic service.
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