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xwb777
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Air Mauritius enters administration

Wed Apr 22, 2020 11:53 am

Air Mauritius board of directors has agreed to enable the company to enter inti administration in a move to protect the best interests of the company and the stakeholders.

In January, the airline has formulated a transformation plan that will help the airline to enhance its business, but the current COVID19 virus has completely swiped the airline’s revenues.

The airline does not expect to be meetings its obligations in the coming months, so the board the opted to enter into administration.

Another airline to be a victim?

Source: https://www.google.ae/amp/s/www.aviatio ... ation/amp/
 
a350lover
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 1:20 pm

In the short-mid term, I'd say pretty much all carriers serving small nations, with small fleets (say... 0-30 planes), and even more those who heavily depend on international traffic are going to see themselves in this scenario. If you add to that mixed fleets, a limited level of integration in big groups, and poor balance sheets from previous years, that's the end.
 
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Antaras
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 2:19 pm

There would be some more A339 as well as A359 available on second-hand market.
Truly a nightmare for Airbus.
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777Mech
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 2:29 pm

Antaras wrote:
There would be some more A339 as well as A359 available on second-hand market.
Truly a nightmare for Airbus.


And Boeing.
 
Weatherwatcher1
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 2:30 pm

The 2019 financial numbers look really bad. Very unfortunate to go through the fleet modernization with A330neos and A350 right before a downturn.
 
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aemoreira1981
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 2:35 pm

Antaras wrote:
There would be some more A339 as well as A359 available on second-hand market.
Truly a nightmare for Airbus.


They also sub-lease two A359s to South African. They could be coming back.
 
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cv990Coronado
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 2:38 pm

I would be surprised if something of MK isn't salvaged. Tourism is still an important part of the Mauritian economy and a large employer of semi-skilled labour.
As far as I can see the Mauritian Government through various identities, is the majority shareholder. Maybe a member closer to the story has more insight?
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Antaras
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 2:44 pm

aemoreira1981 wrote:
Antaras wrote:
There would be some more A339 as well as A359 available on second-hand market.
Truly a nightmare for Airbus.


They also sub-lease two A359s to South African. They could be coming back.

Sad story for SA as it might loss its best airframes due to the lessor's trouble...
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andz
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 4:07 pm

Antaras wrote:
aemoreira1981 wrote:
Antaras wrote:
There would be some more A339 as well as A359 available on second-hand market.
Truly a nightmare for Airbus.


They also sub-lease two A359s to South African. They could be coming back.

Sad story for SA as it might loss its best airframes due to the lessor's trouble...

Considering that SA could be liquidated within a week it is the least of their worries.
After Monday and Tuesday even the calendar says WTF...
 
Breathe
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 5:25 pm

As far as I'm aware, the only aircraft MK directly own are:

2 x A319-100
1 x A330-200
2 x A340-300
2 x A350-900 (currently leased to SAA)
1 x ATR-72-500

I wonder if the Gov is looking to use the Administration as a way to ditch the leased aircraft and pending 2 x A350 orders from Airbus.
 
Cubsrule
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 5:37 pm

Weatherwatcher1 wrote:
The 2019 financial numbers look really bad. Very unfortunate to go through the fleet modernization with A330neos and A350 right before a downturn.


Indeed. It's (unfortunately) a movie we've seen before in the U.S.: fleet modernization right before 9/11 was substantially what killed TZ.
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par13del
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Re: Air Mauritius enters administration

Wed Apr 22, 2020 5:45 pm

I can imagine that when the island is allowed to reopen the likes of BA and AF will make proposals to the government for subsidies to restore service.
 
berari
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Re: Air Mauritius enters administration

Thu Apr 23, 2020 12:28 am

Maybe Ethiopian will finally be allowed into Mauritius :stirthepot:
 
evanb
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Re: Air Mauritius enters administration

Thu Apr 23, 2020 6:34 am

aemoreira1981 wrote:
Antaras wrote:
There would be some more A339 as well as A359 available on second-hand market.
Truly a nightmare for Airbus.


They also sub-lease two A359s to South African. They could be coming back.


As long as SA keep operating (in itself unlikely) the sub-lease will just be automatically assigned to the underlying lessor.
 
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aemoreira1981
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Re: Air Mauritius enters administration

Thu Apr 23, 2020 3:10 pm

Breathe wrote:
As far as I'm aware, the only aircraft MK directly own are:

2 x A319-100
1 x A330-200
2 x A340-300
2 x A350-900 (currently leased to SAA)
1 x ATR-72-500

I wonder if the Gov is looking to use the Administration as a way to ditch the leased aircraft and pending 2 x A350 orders from Airbus.


The A359s are actually owned by AerCap or Air Lease Corporation. SAA is making the lease payments right now though. They would transfer to Air Mauritius if South African formally collapses.
 
grjplanes
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Re: Air Mauritius enters administration

Thu Apr 23, 2020 4:58 pm

Just clarify regarding the A350-900

SAA is operating two yes, through MK or then the leasing company...but MK is also operating 2 A359s themselves (3B-NBP and 3B-NBQ)
 
Breathe
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Re: Air Mauritius enters administration

Thu Apr 23, 2020 9:27 pm

aemoreira1981 wrote:
Breathe wrote:
As far as I'm aware, the only aircraft MK directly own are:

2 x A319-100
1 x A330-200
2 x A340-300
2 x A350-900 (currently leased to SAA)
1 x ATR-72-500

I wonder if the Gov is looking to use the Administration as a way to ditch the leased aircraft and pending 2 x A350 orders from Airbus.


The A359s are actually owned by AerCap or Air Lease Corporation. SAA is making the lease payments right now though. They would transfer to Air Mauritius if South African formally collapses.

The 2 A350's that MK currently operate are leased from AerCap. They lease the 2 x A330neo's from Air Lease Corp. The two being leased to SAA are owned by MK.
 
Breathe
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Re: Air Mauritius enters administration

Thu Apr 23, 2020 9:28 pm

berari wrote:
Maybe Ethiopian will finally be allowed into Mauritius :stirthepot:

Maybe they'll let in Qatar Airways in and let Air Asia X (if they're still around) back in too. :D
 
berari
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Re: Air Mauritius enters administration

Wed May 06, 2020 3:09 pm

Moments of crisis bring about some great shifts.

Talks are underway with the government of Mauritius about the revival of the island nation’s state carrier, which was put into administration last month, Ethiopian [Airlines] Chief Executive Officer Tewolde GebreMariam said in an interview on Tuesday. [...]

https://www.bloombergquint.com/business ... n-carriers
 
Breathe
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Re: Air Mauritius enters administration

Thu May 07, 2020 2:31 pm

Ethiopian are one of the most competently run African airlines. It wouldn't be a bad partner to have on-board to weather the storm.
 
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3BNBE
Posts: 102
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Re: Air Mauritius enters administration

Thu May 07, 2020 7:12 pm

berari wrote:
Moments of crisis bring about some great shifts.

Talks are underway with the government of Mauritius about the revival of the island nation’s state carrier, which was put into administration last month, Ethiopian [Airlines] Chief Executive Officer Tewolde GebreMariam said in an interview on Tuesday. [...]

https://www.bloombergquint.com/business ... n-carriers


This was officially denied by the 2 administrators of Air Mauritius by a communique issue earlier today (07.05.2020)

https://www.airmauritius.com/docs/defau ... cee43988_2

The Mauritian government most probably wants to maintain MK's ownership to the greatest extent possible.
Radical actions are being taken, with at least half of MK's pilot (100 out of 200) to be laid off; discussions with the trade unions are still ongoing.
Air Mauritius will probablly reduce:

(i) its workforce (2929 employees, 230.7 employees per aircraft)
With 201 pilots, 562 cabin crew, 232 international employees, 130 engineers and a staggerring 1258 people in its administration, MK is for sure overstaffed. However, the governmemt wants to minimise job losses in the process and with rather strong trade unions, such may not be an easy task.

(ii) its fleet (even though it has only 13 aircrafts, excluding 2 A350 leased to SA)
Readapting the fleet might however be complex; the long-term lease market is facing excess supply, but rather low demand due to the ongoing situation. If SA ends up returning the A350 to MK, it will find itself with 4 A350, which will be too much capacity with travel and tourism deeply affected. The A330 fleet (2 A330-200 and 2 A330neo) may be used on the long haul network, with all the A340 being phased out.
Fleet renewal might not be possible, but a perfect scenario would be more medium range single aisle aircrafts (such as the A319neo, to operate to India) and A330neo instead of A350/A330ceo.

(iii) the number of destinations it operates to
MK should concentrate on the logical, profitable and major hubs in its network, such as Paris, London, Mumbai, Hong Kong and maybe Singapore and Perth on the long-haul segment. Regionally, both the destinations in Reunion Island (RUN and ZSE), Antananarivo and Johannesburg may be kept, with Durban and Cape Town being restored when tourism between South Africa and Mauritius goes to an 'allowable' level, to not say normal since it'll take very long to go back to pre-corona figures regarding tourist arrivals. For the only domestic route, to Rodrigues (RRG), the government will surely have to subsidise it, since it is a loss-making one due to RRG's runway constraints (it cannot accommodate aircrafts larger than the ATR 72, even though works to extend it to welcome aircrafts up to the A321neo would have soon started, costing about $ 350,000,000).
Nairobi might be left totally to Kenya Airways, Mahé to Air Seychelles and the other destinations foregone served via 'hubs' (Mumbai for India, Hong Kong for Far East, Singapore for South East Asia and Paris for Europe). This will allow MK to focus on frequencies rather than the number of destinations, giving it a certain advantage.

Of course, in practice, things may not go as planned but for sure, if MK survives, government interference, nepotism and bad management must be things of the past for the airline to not experience the same situation, again.
 
Breathe
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Re: Air Mauritius enters administration

Thu Jun 25, 2020 2:36 pm

Administrators are taking back the 2 x A350s from SAA according to this article from CAPA:

https://centreforaviation.com/news/air- ... aa-1006999
 
Breathe
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Re: Air Mauritius enters administration

Thu Jul 09, 2020 1:56 pm

Air Mauritius has put 5 aircraft up for sale:

2 x A340-300s (MSNs 194 and 268)
1 x A330-200 (MSN 1057)
2 x A319s (MSNs 1592 and 1936)

Doubt they'll find many buyers clambering for those ageing A340s!

https://www.flightglobal.com/fleets/air ... 03.article

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