Air Mauritius Enters Voluntary Administration

Mauritian Flag carrier Air Mauritius has entered voluntary administration after suffering from coronavirus-related disruptions.

Air Mauritius Enters Voluntary Administration
Air Mauritius has been put into voluntary administration Photo: Air Mauritius 

The airline confirmed that it was placed into voluntary administration following complete reviewing of the company's revenue base. 

Air Mauritius has now became the second airline to enter voluntary administration after Virgin Australia entered voluntary administration yesterday due to current situations. It seems other airline could suffer before this crisis is over.

The state-owned carrier failed to meet financial obligations as a result of coronavirus disruption making it impossible for the carrier to meet its financial obligations for its foreseeable future.

In a statement, Air Mauritius said:

"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."

Air Mauritius said that the coronavirus pandemic along with travel restrictions due to closure of international borders have eroded their entire revenue for the time-being. 

Although, the international travel is expected to resume by the end of 2020, airline are not expecting profitable passenger number at least until next year. Airlines are predicted that it would take years to return back in previous situation. 

Air Mauritius Enters Voluntary Administration
The airlines revenue has eroded completely Photo: Airbus

According to the letter issued by the airlines board of directors, Mr. A. Sattar Hajee Abdoula, FCA and Mr. Arvindsingh K. Gokhool, FCCA of Grant Thornton have been appointed as the carrier's administrators. 

The letter also made it clear that the announcement will come into effect from 22nd of April 2020, Wednesday at 14:00 hours.

Air Mauritius was founded in 1967 as a joint venture between Air France, BOAC and the Mauritian government. However, operations began later in 1972.

Air Mauritius Enters Voluntary Administration
The airline currently has a fleet of 13 aircraft Photo: JetPhotos

The state-owned carrier ferries 1.7 million passengers a year to 22 destinations across four continents.

As of now, the carrier consists of the following 13 aircraft:

  • 2x Airbus A319
  • 2x Airbus A330-200
  • 2x Airbus A330-900
  • 2x Airbus A340-300
  • 2x Airbus A350-900
  • 3x ATR 72-500s

In addition, the airline has provided two Airbus A350-900s to South African Airways on lease. The airlines average age is 11.3 years.

The airline was the first airline to operate both the Airbus A350 and A330neo aircraft.

Air Mauritius Enters Voluntary Administration
Two A350s of Air Mauritius are leased to South African Airways Photo: Airbus

Airlines around the world have grounded majority of their passenger flights after governments have imposed travel restrictions to slow down spread of the coronavirus.

Due to ongoing travel restrictions and decrease in demand for air travel, even the manufacturers, Airbus and Boeing will be forced to cut production by around 40% through 2021, citing airlines current condition.

When do you think aviation will return back in its previous situation? Feel free to share in the comments below: