Air Mauritius issued a frank assessment of its financial position in early Jan-09 as it revealed massive fuel hedging losses and a fall in demand. At the time, the airline stated that if oil prices were to fall below USD30 and demand declined even more sharply than currently projected and/or the Euro were to depreciate sharply against the USD, “additional measures and/or capital injection may be required” – its worst case scenario. Those fears could now be unfolding.
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