Air Mauritius Seeks Indian Investment for Turnaround Strategy
Air Mauritius is navigating a significant financial crisis, marked by substantial losses and governance challenges. The airline is actively seeking strategic investment from Indian companies, coupled with increased flight connections to Port Louis, as part of a comprehensive turnaround plan. This initiative is backed by the Mauritian government and aims to restore the airline's financial stability by 2026.
The airline's financial woes are substantial, with reported losses reaching €317 million for the fiscal year 2024. These losses have prompted a series of restructuring efforts, including a debt-to-equity conversion completed in February 2025. However, the airline continues to grapple with long-term liabilities, particularly unfavorable contracts related to its Airbus A350 aircraft. These financial burdens are further complicated by ongoing investigations into governance issues.
Two separate audits are currently underway to address these concerns. Kroll, a forensic auditing firm, is investigating three major fleet transactions, including aircraft sales, leasing arrangements, and a recent A350 order. Concurrently, KPMG is conducting an audit focused on the management of \$55 million in working capital, examining whether these funds were used appropriately. These investigations aim to uncover any financial irregularities and strengthen the airline's governance practices.
Amidst these challenges, Air Mauritius has appointed Andre Viljoen as its new CEO. Viljoen, a seasoned aviation executive with a strong track record, is set to take the helm in October 2025. He previously led Fiji Airways for nearly a decade, overseeing significant growth and modernization, and also served as CEO of Air Mauritius from 2010 to 2015. His return is seen as a strategic move to leverage his expertise in guiding airlines through challenging periods.
Viljoen's recovery plan hinges on securing strategic investment from Indian aviation companies. This investment is expected to bolster the airline's financial position and support its operational restructuring. The plan also includes increasing the number of flights between India and Port Louis, Mauritius's capital and the airline's main hub. This expansion of air links aims to capitalize on the growing travel market between the two countries.
The timeline for Air Mauritius's recovery is ambitious. Viljoen has set a target of achieving financial stability by the end of 2026, giving him approximately 15 months from his start date to implement the turnaround strategy. This timeframe requires swift action and effective execution of the proposed plans. The success of this recovery will depend on several factors, including the successful acquisition of Indian investment, the resolution of ongoing governance issues, and the effective implementation of stricter financial controls.
The coming months will be crucial for Air Mauritius. The outcome of the ongoing audits, the progress of negotiations with Indian investors, and the initial steps taken by the new CEO will significantly shape the airline's future. The African travel industry will be closely watching these developments, as the airline's recovery is vital for maintaining strong air connectivity within the region and beyond.
