Virgin Australia
Virgin Australia

NEW DELHI: Struggling Air Mauritius has entered voluntary administration after the board resolved that with the coronavirus grounding it would not be able to meet its financial obligations in the foreseeable future.

Air Mauritius had already embarked on a transformation programme in January this year under which it was reviewing its business model in a bid to secure sustainability. In a company statement the airline’s board of directors state that while “substantial progress” was made in developing its action plan, the closure of borders and halting of air services because of the coronavirus has led to a “complete erosion of the company’s revenue base”.

Air Mauritius was forced to suspend flights at the start of April because of the coronavirus restrictions.

“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,” the airline says. ”In these circumstances, it is expected that the company will not be able to meet its financial obligations in the foreseeable future.”

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