Air Mauritius and Our SOEs

Editorial

Air Mauritius, once the pride of the island, is still battling for survival, weighed down by years of mismanagement, political interference, and mounting financial pressures. The airline has undergone numerous crises, including a near collapse during the 2019-2020 period when it was forced into receivership and injected with billions in public funds to prevent liquidation. During Covid it rushed to sell for petty cash brand new aircraft it had just received and refurbished ones while hundreds of experienced staff were laid off and more billions were injected in the new holding company that swallowed it up.

Despite these substantial financial injections, the company has failed to regain its former glory. Instead, it has continued to face challenges such as delayed flights, cancellations, poor customer service, and questionable management decisions. With the appointment of its next (thirteenth) CEO in just over two decades, it’s evident that Air Mauritius’ leadership struggles continue to impact the airline’s future.

The current situation at Air Mauritius is a direct reflection of the company’s turbulent past, where political interference and inconsistent management practices have consistently undermined its operations. Political appointments to the company’s board and top management have often resulted in decisions driven by political considerations rather than the strategic needs of the airline and its operational effectiveness. This has left the airline vulnerable to poor management practices, which have taken a toll on its finances and reputation.

In the latest development, Dass Thomas, who had been initially considered for the role of CEO, was passed over before he even had the chance to settle into the position. Instead, André Viljoen, a former CEO, is set to return to lead the company. The constant turnover of CEOs, with twelve different leaders since 2000, speaks volumes about the instability at the top of the company. The lack of continuity in leadership has made it difficult for Air Mauritius to implement long-term strategies that could help stabilize and grow the airline.

One of the critical factors in Air Mauritius’ continued struggles is the open skies policy and the competition that has emerged as a result. While the policy has brought benefits in terms of increased access to international routes, it has also put tremendous pressure on the national carrier to stay competitive. The arrival of new airlines and the expansion of regional competitors has forced Air Mauritius to rethink its business model and service offerings. Yet, it would seem the airline has been slow to adapt to these changes. While political interference has stifled the company’s ability to make swift and appropriate decisions, Air Mauritius has nonetheless attempted to maintain its position in the market, relying on its reputation for quality service as a primary differentiator.Read More… Become a Subscriber


Mauritius Times ePaper Friday 31 January 2025

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