What lies ahead for Air Mauritius?

Air Mauritius, the national airline of Mauritius, is facing a tumultuous period as it grapples with financial distress and the impact of the global pandemic on the aviation industry. Administrators have indicated that the carrier may need to lay off 18 pilots and potentially cut 1,300 jobs to salvage the airline from its current struggles. Economic Analyst Prem Sewpaul shed light on the challenging situation facing Air Mauritius in an interview with CNBC Africa. Sewpaul highlighted that the aviation sector in Mauritius has been at a standstill since April 2020, with operations reduced by over 90%. The airline, which had already been facing financial difficulties prior to the pandemic, made ambitious aircraft orders that strained its cash flow and put pressure on its operations. Sewpaul pointed out that the combination of unrealistic growth projections and the need to balance national duties with profit imperatives contributed to the company's financial woes. The current financial state of Air Mauritius is precarious, with the airline entering voluntary administration in April 2020. To curb costs, the administrators implemented salary reductions, layoffs, and the sale of older aircraft. Despite government support earmarked for the struggling airline, Air Mauritius is in a critical position that requires significant intervention to ensure its survival. Airline industry experts like Sewpaul believe that government assistance is crucial for the survival of airlines worldwide, given the unprecedented challenges faced by the sector. As the global aviation landscape continues to evolve, the future of Air Mauritius remains uncertain. However, the strategic importance of the national carrier to Mauritius' economy and tourism industry may necessitate its survival, albeit at a substantial cost to the government. In light of the difficult circumstances facing Air Mauritius, stakeholders and industry observers are closely monitoring the airline's fate. The ability of the carrier to navigate through this crisis and emerge stronger on the other side will depend on various factors, including government support, operational restructuring, and long-term sustainability measures.