Mauritius Buys British Airways Stake

  • 16 years ago
  • Uncategorized
Mauritius is set to buy the British Airways stake in their national airline after British Airways entered into an agreement to sell its 10.5% share in Air Mauritius for GBP3.2m. The historic moves will see an end to The British carrier’s stake in the company something it has been part of since 1973.
 
Robbie Baird, British Airways’ area general manager for Asia Pacific, said that the investment in Air Mauritius no longer formed a core part of its business stratedgy.  “It is now a successful carrier, operating to the highest standards and no longer requires our involvement and support.”

The airline will sell its 3.84% share in Air Mauritius to the Mauritian government and its 13.24% share in the Air Mauritius Holding Company to existing shareholders.

BA said the sale, which it hopes to complete within the next month, had been struck with the full co-operation of Air Mauritius and the Mauritian government.

Air Mauritius has a fleet of five A340-300s, two A340-300Es, two A319-100s, one A330-200 and two ATR72-500 aircraft. The airline flies to 27 destinations in Europe, Asia, Australia, Africa and the Indian Ocean.
 
Meanwhile overseas buyers are being attracted to Mauritius for second homes and retirement. Mauritius offers an attractive blend of advantages for international investors. These include: political stability, pleasant and peaceful living conditions, efficient telecommunications, pool of qualified professionals conversant in English and French, Investment Promotion and Protection Agreements, International Stock Exchange, Freeport activities and the absence of exchange control.
 
Over the past five years the country registered an annual average real growth rate of 5.1%, balance of payments surpluses leading to a comfortable external reserves position, and single digit inflation on average. With a per capita income of US $ 5078 (for Jan to Oct 2004), Mauritius is now classified as a middle income country and ranks, on the basis of the recent Human Development Index for 173 countries, 67th globally, 40th among developing countries and second in Africa.
 

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