The uncertain future of Air Mauritius is alarming. Degreasing plan, decrease of a fleet of 13 aircraft reduced by two A340s, two A319s and two A330s of which five were sold and one returned to its owner. And with the hearsay that our national airline will only serve 50% of the destinations of yesteryears, probably Paris, London, Hong Kong, Kuala-Lumpur, Mumbai, Perth, Johannesburg, Antananarivo, Saint-Denis and Rodrigues, as well as fewer General Sales Agents across the globe, i.e. about ten. The Watershed meeting is highly anticipated, it marks the end of the voluntary administration but also the Deed of Company Arrangement (DOCA), the rescue plan adopted, the fees that they will, let’s say, honour, but above all the fate of the 2300 employees… In all this, the country’s economy is suffering, the tourism sector considered a pillar and the image of our island Mauritius which is being tarnished… The former Minister of Foreign Affairs and new leader of the Rassemblement Mauricien party gives us his sharp opinion “the impact will be terrible if the new restructuring is a failure” and fears that “with the new appointment we are heading for an even more difficult situation” but regrets that “the tragedy remains the excessive politicisation of this whole issue! ”
Can Tourism survive without a fully functional national airline?
For an island lost in the Indian Ocean and far from markets, especially in Europe, we absolutely need a viable national airline for connectivity and tourism. MK, Air Mauritius carries no less than 500,000 tourists every year on routes that are not necessarily profitable, the national airline is at the service of the country and this is an essential factor in any reflection on the revival of tourism and a new start for MK, Air Mauritius.
What will be the impact on the economy?
Tourism in normal times brings in 2 billion euros. So out of a GDP of 10 billion euros, aviation with its related activities weighs very heavily, more than 25 percent. This is a real impact on the recovery. MK, Air Mauritius must be the strategic instrument of our tourism policy. The national airline is there to serve the country, hence the routes which are not profitable but essential for the tourism industry.
The other companies fly for commercial reasons. On the budget, according to the directors, 12 billion rupees will be needed for the revival of MK after disastrous decisions by incompetent political appointees. The impact will be terrible if the new restructuring is a failure.
What about the image of Mauritius as an independent country?
We have known the great pride that MK, Air Mauritius has brought to every Mauritian, the feeling that the national airline is an asset to us all. MK has won a lot of awards and we have demonstrated internationally that we can have a viable and reliable airline with quality staff and a substantial fleet. We are going to lose that image. They have sold off a lot of aircraft and we are told that there will be a policy of reducing staff. Our national straw in the tail is taking a big hit.
The image of Mauritius in terms of the spread of Covid 19 is very negative with the funding from the US Centre for Disease Control (CDC), and the reports from France.
It is up to us to turn things around and put MK back on track.
If it turns out that Air Mauritius is only operating with 50% of the number of countries served and with a reduced number of GSAs, can we :
Hold and sustain?
This will mean that Air Mauritius will be reduced to a small regional airline with a few long-haul flights. And we will have to depend on foreign airlines for flights that are essential for our tourism. The worst thing is that MK will not be able to compete with other airlines and may disappear.
And recovering the debts?
There has been catastrophic management due to disastrous decisions taken by political appointees, and now the people are paying the bill. The administrators are proposing a new management of the debts, let’s wait and see.
Keeping the jobs of those in aviation sector?
They have fired people who have given everything to the company. They have put pilots on leave. We have a thousand jobs on hold. We are heading towards a solution where there is great uncertainty because the administrators have done a purely accounting exercise and do not offer any visibility concerning MK’s operating plan, nor its role in the revival of tourism.
What are your predictions for the total reopening of the borders and its effect on the economy and on pandemic management?
On the health issue, I am very apprehensive because we are heading for a peak.
On the economic front, the figures announced are too optimistic because all the specialists know that the recovery will be slow and complex.
Will you propose a solution at this point?
A solution; it is complex given the enormous stakes for Air Mauritius. We need to find a solution that is an airline solution, not a merger with a political appointee with no experience and no skills with two companies that are profitable today.
We have to accept that MK is indispensable as a driving force for tourism, and that not all routes are profitable. It is also necessary to gain the confidence of the personnel for a new start with a new responsibility of all the actors for the survival of the company.
The 12 billion is there to be injected into the recovery and not to be “Throwing Good Money After Bad Money” as it was the case in 2019 with the 2 billion and more obtained from AML and MDFP.
If we don’t get it right and the 12 billion is useless then it will be an absolute disaster. But the key issue is still to bring in solid skills to get out of the crisis. With the new appointment, I fear we are in for an even more difficult situation.
What are your feelings on the management of this case, the administrators behind it and the Watershed Meeting on 27 September?
The tragedy is that the directors know nothing about the specificity of aviation and they treated the file in a superficial manner, without understanding how Air Mauritius got there. They have confined themselves to an accounting analysis, without wanting, intentionally or not, to analyse the figures, the balance sheets and understand how disastrous decisions were taken.
The Watershed Meeting focuses mainly on debts and receivables and proposes, like any other classic solution, debt repayment terms.
There is nothing about MK’s future operations, use of the current fleet, and human resources, except that the lines covered will be reduced to 50 per cent.
Once creditor approval is obtained, we are far from being out of the crisis. On the contrary, we will have to manage the 12 billion and above all put the company back on track in a climate where there is no certainty or visibility. The tragedy remains the excessive politicisation of the whole issue!
Please make sure the CEO of Air Mauritius is Competent European with strict ethics to control in house corruption, a good deal leadership person , further should merge with British Airways/ Emirates airline , to continue flying the flag of Mauritius for the future.