IndiGo’s Entry Sparks Uncertainty for Mauritius Airline

l’Express May 16th edition reported on a potential multilateral agreement between the Mauritian government and Indian airline IndiGo, known as the Multi-Aircraft Service Agreement (MASA).

Although not officially announced by Air Mauritius (MK), it appeared that the agreement has already been concluded.

IndiGo has recently confirmed its intentions to the Indian press, including Times of Aviation and Economic Times.

According to these reports, IndiGo’s Chief Executive, Pieter Elbers, announced the launch of operations to Mauritius in the near future.

The airline will become the third to operate on the route between India and Mauritius, joining Emirates, Saudia, and Turkish Airlines.

The confirmation of this agreement has raised concerns among employees, who fear that the presence of IndiGo could disadvantage MK and its employees.

With only one Mauritian airline pitted against several major foreign carriers, the competition is likely to be intense.

IndiGo is expected to begin operations in September 2024. The agreement is subject to a bilateral Air Services Agreement (ASA) between the two countries, determining the conditions under which airlines can operate flights between them.

One of the major concerns is the number of seats allocated to IndiGo under the MASA. At present, there is no information available on this aspect of the agreement.

The capacity of the Indian market is estimated to be around 90,000 to 100,000 passengers per annum, raising doubts about the viability of such a capacity for an Indian operator.

It is worth noting that Air India and MK have already entered into a joint venture agreement, where they collaborate closely to offer air transportation services.

This partnership is allowing Air India to transport passengers to destinations served by MK using its aircraft. Similarly, MK benefiting from this collaboration by accommodating Air India’s passengers on its flights.

With the presence of IndiGo, it remains unclear whether Air Mauritius can remain competitive in a market that is already restricted and highly competitive.

The current situation, where MK is limited to a maximum of seven flights per week to Mumbai without restrictions on seat capacity, could have a significant impact on the airline’s position on the Indian-Mauritian market.

IndiGo’s extensive network, significant connectivity capabilities, and high cost advantages due to its operational scale make it a formidable competitor.

As Air Mauritius is facing uncertainty in the face of this new challenge, it remains to be seen how the airline will adapt to this changing landscape.

Source: l’Express