Air Mauritius postpones watershed meeting

The administrators of Air Mauritius (MK, Mauritius) have obtained permission from the country’s Supreme Court to postpone the watershed meeting of the airline from December 2020 up to June 30, 2021, saying they could not present a “viable long-term plan at this point” due to the impact of COVID-19. The company has also obtained approval from the Stock Exchange of Mauritius (SEM) for an extension up to June 30, 2021, for the publication of its abridged consolidated audited financial statements for the year ended March 31, 2020, and subsequent quarterly results. The Supreme Court has also granted the administrators an extension to June 30, 2021, to issue termination of employment notices to Air Mauritius staff. Administrators Sattar Hajee Abdoula and Arvindsingh Gokhool, in a notice to SEM shareholders, said the recovery plan for the airline was ready to be presented in December. However, the impact of Europe’s second COVID-19 wave on international travel from the airline’s main markets in France and the United Kingdom, and strict sanitary measures in Mauritius for arriving travellers, made the situation more complex. The postponement of the meeting would allow them to have a clearer outlook and give them more time to continue discussions with creditors, Abdoula said. He said the normal resumption of commercial services, in particular to the airline’s main destinations, remained uncertain. For the time being, the administrators were investigating all possible options to keep the company afloat. “At this stage, it remains difficult to estimate the restructuring costs (given the stage of the discussions with the stakeholders), which need to be included in the financial statements for the year ended March 31, 2020, and the subsequent quarterly results that comply with the fundamental accounting principles. The subsequent events may affect the preparation of the accounts on a going concern basis. Further time is therefore required to be able to include information in the financial statements in order to provide a true and fair view of the financial status of the company. For the same reasons, there may be delays to publishing the quarterly financial statements for the quarter ended June 30, 2020; September 30, 2020; and December 31, 2020,” he said. The administrators said achievements since their appointment in April 2020 included fixed cost savings of MUR2 billion rupee (USD50.2 million) from April 22 to October 30, 2020, including a fleet rationalisation. While they did not provide more details, it is recalled Air Mauritius put two A340-300s, one A330-200, and two A319-100s up for sale in July as part of its fundraising drive. Various discussions and negotiations had been initiated with leasing companies, financial institutions, shareholders, and nine trade unions, they said. According to the ch-aviation fleets ownership, Air Mauritius has a fleet of 15 aircraft including two each of the following; A319-100s, A330-200s, A330-900Ns, and A340-300s. It also has four A350-900s and three ATR72-500s. “We know that the current situation is not easy for Air Mauritius teams, but we would like to reaffirm our willingness to work together with their representatives to find solutions to ensure the survival of the company. Although we welcome the imminent development of a vaccine against the coronavirus, we wish to remain cautious given the situation in our main markets,” they said.