Air Mauritius has entered voluntary administration stating that due to the coronavirus pandemic, it would not be able to meet its financial obligations.
According to the airline, travel restrictions and the closure of borders in all its markets and cessation of all international and domestic flights have led to ‘a complete erosion of the company’s revenue base’.
“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.
”In these circumstances, it is expected that the company will not be able to meet its financial obligations in the foreseeable future. The board, therefore, took the decision to put the company under voluntary administration in order to safeguard the interests of the company and that of all its stakeholders.”
The airline has appointed Grant Thornton as the Administrators.
On Thursday, the International Air Transport Association (IATA) renewed its call for government relief measures as the impacts of the COVID-19 crisis in Africa deepen.
IATA says with close to over 3.5 million fewer passengers, it has resulted in a US$0.54 billion revenue loss for Mauritius, risking 73,700 jobs and US$2 billion in contribution to the country’s economy.
“Airlines in Africa are struggling for survival. Air Mauritius has entered voluntary administration, South African Airways and SA Express are in business rescue, other distressed carriers have placed staff on unpaid leave or signaled their intention to cut jobs. More airlines will follow if urgent financial relief is not provided. The economic damage of a crippled industry extends far beyond the sector itself. Aviation in Africa supports 6.2 million jobs and $56 billion in GDP. Sector failure is not an option, more governments need to step up,” said Muhammad Al Bakri, IATA’s Regional Vice President for Africa and the Middle East.