In face of alleged threats to its financial status, Air Mauritius has issued a communiqué to reassure its stakeholders and shareholders that it is not moving towards bankruptcy.
The national airline company is currently having to deal with debts, including a second hedging that might cost around Rs 2 billion to the firm. Is it heading towards a financial crisis? Air Mauritius argues that the debt level is within the norms. It asserts being able to honour its financial obligations.
It has explained the issue relating to the hedging as follows:
“based on expert advice and in line with most international airlines’ practices, it is the policy of Air Mauritius to hedge a part of its fuel requirements. Currently, the company is benefiting from prevailing lower prices on its overall fuel bill”.