The board of Air Mauritius has placed the carrier in voluntary administration, citing the effect of travel restrictions and border closures arising from the coronavirus pandemic.
In a statement, the board said this had led to a "complete erosion" of the airline’s revenue base, with little certainty when international air traffic operations will resume.
"In these circumstances, it is expected the company will not be able to meet its financial obligations in the foreseeable future," said the airline. "The board, therefore, took the decision to place the company under voluntary administration in order to safeguard the interest of the company and its stakeholders."
The move, announced on Tuesday (22 April), came amid ongoing efforts to address the company’s existing financial difficulties and review its business model "to ensure a sustainable future", a process hampered by the onset of Covid-19.
A Sattar Hajee Abdoula and Arvindsingh K Gokhool have been appointed administrators of Air Mauritius, which has been serving the island nation for more than 50 years.
Voluntary redundancy does give the business scope to pursue a restructure, and potentially rebuild the carrier on firmer footing.