Flag-carrier Air Mauritius has entered voluntary administration having been overwhelmed by the coronavirus pandemic.
Air Mauritius had already launched into a change programme in January this yr underneath which it was reviewing its enterprise mannequin in a bid to safe sustainability.
Nevertheless, this work seems to have been unsuccessful.
In an announcement, the board of administrators at Air Mauritius mentioned whereas “substantial progress” was made in creating its motion plan, the closure of borders and halting of air providers due to the coronavirus has led to a “full erosion of the income base”.
Air Mauritius was compelled to halt all flights initially of April due to coronavirus restrictions.
The suspension was prolonged on April ninth, with no flights now anticipated till at the least Might 15th.
“There may be uncertainty as to when worldwide air site visitors will resume and all indications have a tendency to point out that standard actions won’t decide up till late 2020,” the airline mentioned.
“In these circumstances, it’s anticipated that the corporate won’t be able to satisfy its monetary obligations within the foreseeable future.
“The board due to this fact took the choice to place the corporate underneath voluntary administration so as to safeguard the pursuits of the corporate and that of all its stakeholders.”
Directors from Grant Thornton have been appointed.
Regardless of an improved efficiency for the three months ending December, Air Mauritius posted a internet lack of €14.9 million on the nine-month stage in its most up-to-date monetary outcomes.
IATA earlier warned there was a excessive likelihood of extra airways going through monetary difficulties within the close to future, with the organisation urging governments around the globe to step in and assist.