Air Mauritius postpones recovery plan meeting from December to June 2021
Air Mauritius has saved $ 50 million in fixed charges since being provisionally administered in April. Several measures, including the reduction of wages (by up to 60%) and the renegotiation of rental contracts, have been taken. The publication of its bailout, initially scheduled for next month, has been postponed until June 2021 due to uncertainty over the 2nd wave of Covid-19.
Air Mauritius saved 2 billion rupees (50 million USD) between April 22 - the date on which the company was put under provisional administration - and October 30, 2020. This is what emerges from a press release released by the directors of the Mauritian national company this Monday, November 16. These savings were made thanks to measures put in place by Sattar Hajee Abdoula and Arvindsingh Gokhool to ensure the viability of the company. “Since our appointment […] a colossal job has been done by our team and we have several achievements in a short period of time” they congratulate themselves.
These measures include reducing the salaries of nearly 3,000 employees (between 40 and 60%), setting up a part-time work program for around 50% of the staff, and unpaid leave. Added to this is the renegotiation of contracts with leasing companies and the rationalization of the fleet. Other negotiations have also been initiated with service providers to reduce costs associated with maintenance contracts.
According to the administrators, a turnaround plan was ready to be presented next month. "However, despite all these collective efforts, the second wave of contamination, especially in Europe, and the strict sanitary measures in Mauritius for arriving travelers, have made the situation even more complex," said Sattar Hajee Abdoula. “In this new environment, we cannot present a viable long-term plan at this point. We had no choice but to apply to the Court to have the Watershed Meeting - the meeting of creditors - postponed until next year - in June 2021 ".
Last June, the state pledged to inject 9 billion rupees (225.5 million USD) into the coffers of the company as part of a support plan while it is still operating below its capacity..
Air Mauritius resumed its domestic flights in early July. Since the beginning of October, the national flagship has relaunched its international links exclusively to France and Réunion. His regular trips to South Africa, England, Switzerland, Australia, Singapore, Malaysia and Hong Kong remain on hold. "We know that the current situation is not easy for the Air Mauritius teams, but we would like to reaffirm to them our willingness to work together with their representatives to find solutions to ensure the survival of the company" reassure the administrators.
Air Mauritius saved 2 billion rupees (50 million USD) between April 22 - the date on which the company was put under provisional administration - and October 30, 2020. This is what emerges from a press release released by the directors of the Mauritian national company this Monday, November 16. These savings were made thanks to measures put in place by Sattar Hajee Abdoula and Arvindsingh Gokhool to ensure the viability of the company. “Since our appointment […] a colossal job has been done by our team and we have several achievements in a short period of time” they congratulate themselves.
These measures include reducing the salaries of nearly 3,000 employees (between 40 and 60%), setting up a part-time work program for around 50% of the staff, and unpaid leave. Added to this is the renegotiation of contracts with leasing companies and the rationalization of the fleet. Other negotiations have also been initiated with service providers to reduce costs associated with maintenance contracts.
According to the administrators, a turnaround plan was ready to be presented next month. "However, despite all these collective efforts, the second wave of contamination, especially in Europe, and the strict sanitary measures in Mauritius for arriving travelers, have made the situation even more complex," said Sattar Hajee Abdoula. “In this new environment, we cannot present a viable long-term plan at this point. We had no choice but to apply to the Court to have the Watershed Meeting - the meeting of creditors - postponed until next year - in June 2021 ".
Last June, the state pledged to inject 9 billion rupees (225.5 million USD) into the coffers of the company as part of a support plan while it is still operating below its capacity..
Air Mauritius resumed its domestic flights in early July. Since the beginning of October, the national flagship has relaunched its international links exclusively to France and Réunion. His regular trips to South Africa, England, Switzerland, Australia, Singapore, Malaysia and Hong Kong remain on hold. "We know that the current situation is not easy for the Air Mauritius teams, but we would like to reaffirm to them our willingness to work together with their representatives to find solutions to ensure the survival of the company" reassure the administrators.
Source: newsaero
