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Air Mauritius enters administration amid cash crisis

Posted 22 April 2020 · Add Comment

Air Mauritius is entering voluntary administration following a total collapse in revenues due to the Covid-19 crisis.

The airlione announced the dramatic step followinng a board meeting which met today to consider the latest financial status

In a statement the airline said that in January 2020, it had set up a Transformation Steering Committee with a view to addressing the financial difficulties of the airline and to reviewing its business model for ensuring a sustainable future. Wide consultations were held with all concerned stakeholders and substantial progress was made in formulating an action plan to be recommended to the board.

"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 of 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," a statement said.

It went on to warn that AIr Mauritius will not be able to meet its financial obligations in the foreseeable future the decision was taken to place the company into voluntary administration in order to safeguard the interest of the company and that of all its stakeholders.

Mr A. Sattar Hajee Abdoula, FCA and Mr. Arvindsingh K. Gokhool, FCCA of Grant Thornton have been appointed, under sections 215 and 216 of the Insolvency Act, as administrators of the company, with effect from today

 
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