Air Mauritius declared insolvency and entered the administration
After stopping all domestic and international flights due to the coronavirus crisis, Air Mauritius is facing major economic problems and is unable to meet its financial obligations. On April 22, Air Mauritius declared insolvency and entered into voluntary administration.
Air Mauritius is facing financial problems just before the outbreak of COVID-19. But the pandemic with the new coronavirus worsened the situation of the airline in Mauritius and led to a "complete erosion of the revenue base".
Air Mauritius has declared insolvency
Air Mauritius started to have problems since 2018. In the fiscal year 2018/2019, which ended on March 31, 2019, Air Mauritius recorded losses of over 21 million euros. In the next nine months, April - December 2019, it accounted for additional losses of 14 million euros. Clearly, the business model practiced by Air Mauritius did not bear fruit.
In an attempt to transform the airline, the company's board of directors has set up a recovery plan that they have been implementing since January 2020. But unfortunately, COVID-19 came and the situation worsened. In theory, insolvency does not mean closing the company. But there are few companies that have managed to recover from insolvency.
Air Mauritius has a fleet of 13 aircraft: 3 x ATR 72, 2 x Airbus A319, 4 x Airbus A330, 2 x A340 and 2 x A350XWB. At the end of the last financial year, Air Mauritius flew to 22 destinations in Africa, Asia, Australia and Europe.