What lies ahead for Air Mauritius as it emerges from administration?
Air Mauritius was under administration owing to its financial and management struggles. Until recently, the airline exited administration after receiving government bailout. How is the airline positioning itself? Prem Sewpaul, Economic Correspondent, Radio Plus joins CNBC Africa for more.
Wed, 16 Mar 2022 15:29:11 GMT
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AI Generated Summary
- The impact of the COVID-19 pandemic and prolonged lockdowns severely affected Air Mauritius and Mauritius' tourism industry
- Air Mauritius aims to attract tourists back to the island by resuming operations on key routes and developing its regional network
- The airline is consolidating ownership, aligning its mission with national interests, and exploring fleet optimization to enhance financial viability
Air Mauritius, the national carrier of the small island nation of Mauritius, has recently emerged from administration following a tumultuous period of financial and management struggles. The airline, which received significant government bailouts to stay afloat, is now positioning itself to rebuild its operations and play a crucial role in reviving the country's tourism sector. The impact of the COVID-19 pandemic, coupled with the prolonged lockdowns and closed borders in Mauritius, have severely affected the airline and the broader tourism industry, which represents a significant portion of the country's economy.
Mauritius, known for its pristine beaches and luxury resorts, relies heavily on tourism to drive economic growth. With the borders now open and most restrictions lifted, the government is actively working to attract tourists back to the island. The Minister of Tourism has set an ambitious target of welcoming one million tourists to Mauritius this year, although this falls short of pre-pandemic levels.
To achieve this goal, Air Mauritius is gearing up to resume operations on its main routes, including South Africa, Paris, London, Mumbai, and other key destinations. The airline plans to operate quasi-normally on these routes by the end of April, with a focus on building back its regional network to enhance connectivity and financial viability.
Despite the challenges posed by the pandemic and the need for restructuring, Air Mauritius is taking proactive steps to strengthen its position in the market. One key move has been to consolidate ownership by bringing back shares from various shareholders, including Air India, Air France, and private investors. The airline is now under the umbrella of airport holding's limited, which holds a majority stake and aims to align the company's mission with national interests and the strategic goals of the tourism sector.
Additionally, Air Mauritius is exploring opportunities to enhance its regional network by developing medium-haul routes and expanding its reach to markets like India, Kuala Lumpur, and Africa. Negotiations with Airbus are underway to potentially change aircraft orders and optimize its fleet for these routes, with a focus on efficiency and cost-effectiveness.
While the road ahead remains challenging, Air Mauritius is determined to overcome its financial and management issues to emerge as a more resilient and sustainable airline. By focusing on strategic partnerships, route optimization, and a clear mission aligned with national objectives, the airline aims to contribute significantly to Mauritius' economic recovery and the revival of its vital tourism industry.