[2007-04-06]  Air Mauritius Limited Communique
The Board wishes to inform all shareholders that the company will not be in a position to declare a dividend for the Financial Year ended 31 March 2007. After posting a Group loss of Euro 13.8 million in the low season period up to the half year ended 30 September 2006, compared with a loss of Euro 5.4 million for the same period in the previous year, the company, despite deploying all possible efforts to improve performance in the high season period, has not been able to achieve full recovery of these significant losses.
The Company has been facing many challenges this year. These include:



o the impact of Chikungunya, especially in the first quarter of the financial year,



o increased competition as a result of the opening of the air access, leading to overcapacity and deteriorating yields,



o rising costs (especially the cost of fuel), and lately,



o a shortage of hotel rooms.



The adverse effects arising from all these challenges are being addressed through the implementation of the Company’s Transformation Program over the next three years.
Furthermore during this year, several investments in fleet development have been made. Two new A340-300E aircraft and an ATR72-500 aircraft have been acquired, while two B767 aircraft and two ATR 42-500 aircraft have left our fleet. The fleet plan envisages the addition of new A330-200 aircraft in 2007 and in 2009 to meet the airline’s medium term capacity requirements.
The Board is confident that the measures already taken, and those to be implemented by management through the Transformation Program, will positively impact on the profitability for the Group and the Company in the coming years.
BY ORDER OF THE BOARD
Fooad Nooraully
Company Secretary
05 April 2007


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