Thursday, February 14, 2013

■ MAURITIUS: Viljoen's leadership beginning to pay off as Air Mauritius continues to improve, but not out of woods yet.

Air MauritiusMauritian national carrier, Air Mauritius (MK), is beginning to reap the rewards of its envisioned 7 Step Recovery Plan amid reports that it has posted a USD9.6million (EUR6.4million) profit for Q3 (October-December) of its 2012/2013 Financial Year. However, overall results combined for Q1, Q2, Q3 show the carrier still made a substantive pre-tax loss of USD3.33million (EUR2.5 million).

Vintage Air Mauritius 747SP
Vintage Air Mauritius 747SP (J McDonnell)
Despite the overall loss, the signs of recovery are encouraging as Q3's performance represents an improvement of USD12.94million (EUR9.7million) on the corresponding period for its 2011-2012 financial year, while the cumulative loss for Q1-Q3 represents a huge improvement on the USD30million (EUR22.5million) loss recorded over the same period in 2011/2012.

Reuters reports that the carrier was aided by "fuel costs falling 3.1 percent over the nine months, with seat capacity improving to 1,372,383 from 1,360,640."

Overall, MK attributed the continued recovery of the airline to the implementation of an Andre Viljoen-inspired 7 Step Recovery Plan whose objectives include network concentration and optimization,  improvements in the commercial and revenue management functions, relentless cash conservation and cost reduction program, monetizing of non-core assets, new generation aircraft (more fuel efficient),  a customer service improvement project, and optimization of human resources.