Air Mauritius goes into voluntary administration
Air Mauritius as gone into voluntary administration as a result of the impact of the the coronavirus pandemic.
In January, the airline had set up a ‘transformation steering committee’ to address the financial implications of the outbreak of the virus and reviewing its business model in response and a action plan was formed.
But the carrier’s board today sent a communication to partners updating them on the situation.
It said: “Unfortunately travel restrictions and the closure of borders in all our markets and cessation of all international and domestic flights in an unprecedented crisis has led to a complete erosion in the company’s revenue base.
“Furthermore, 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.
“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 place the company under voluntary administration in order to safeguard the interest of the company and that of all its stakeholders.”
Grant Thornton has been appointed as administrator.