Is the amalgamation of Air Mauritius, Airports of Mauritius and Mauritius Duty Free Paradise being considered by the Executive? This unlikely scenario has received coverage from a mainstream media as part of the long-term solutions being considered by some of the parties involved in the administration of the national carrier.
Although government owned, AML and MDFP, or any other public-owned company will have to comply to robust regulation, should they seek to acquire Air Mauritius.
According to Deloitte’s Airport Ownership and Regulation, IATA Guidance Booklet, any private participation regarding the ownership or expansion of airports requires robust regulation. “Existing regulations should be reviewed to determine if it will remain efficient and effective, given a change in the ownership model”.
Strong safeguards are required to prevent market abuse that are likely to have adverse impacts on the end users.
“In all cases, there should be assurance that the regulatory function will be fit-for-purpose to provide the necessary safeguards. It is important that the regulatory system and its mandate remain relevant. There may be a need for reassessment of the market power of an airport and the elected regulatory model applied as the market power and ownership of airports change over time, and whenever there is a material change in circumstances”, writes Deloitte in its Executive Summary.
