The Edition
facebook icon twitter icon instagram icon linkedin icon

Latest

Govt seizes airport from Villa, converts another to domestic airport

Fathmath Shaahunaz
19 January 2017, MVT 13:03
An aircraft at Maamigili Airport in Alif Dhaal atoll. FILE PHOTO/VILLA AIR
Fathmath Shaahunaz
19 January 2017, MVT 13:03

The Maldives government on Wednesday took back Kaadehdhoo Domestic Airport in Gaafu Dhaal atoll from its operator Villa Air, and converted the company’s Villa International Airport in Alif Dhaal atoll Maamigili island to a domestic airport.

The airports’ operator Villa Air is a subsidiary of Villa Group owned by local tycoon and leader of opposition Jumhoory Party, Qasim Ibrahim.

Regional Airport’s Director General Sami Ageel told Mihaaru that the contract awarding Kaadehdhoo Airport to Villa Air was terminated on Wednesday due to some aspects of airport management violating the standards and regulations of Civil Aviation.

The Civil Aviation Authority had conducted what it said was a “routine inspection” of Kaadehdhoo Airport last November. However, talks of the government taking back the airport had risen since then.

Meanwhile, Villa International Airport in Maamigili island was converted to a domestic airport on request of the airport’s operator Villa Shipping and Trading Company, according to Ageel. Following a written request by Villa over difficulties faced by the company, Civil Aviation Authority had annulled its authorisation to the company to manage an international airport in Maamigili last June 1.

Former president Maumoon Abdul Gayoom (L) speaks to reporters while Jumhooree Party leader Qasim Ibrahim looks on. PHOTO: NISHAN ALI/MIHAARU

Kaadehdhoo Airport was first awarded to Villa in November 2013. However, following the break-up of the government coalition and Qasim Ibrahim teaming up with main opposition Maldivian Democratic Party (MDP), the government had decided to take back the airport and informed Villa in a notice sent by the Ministry of Tourism in August 2014. Villa had taken the case to court which resulted in a court order to delay implementation of the ministry’s notice. However, the state had eventually given back the airport to the company.

The peak of the political turmoil at that time saw Maamigili Airport being converted to a domestic airport while islands leased to other subsidiaries of Villa were also seized. Villa had also been ordered to pay USD 90.4 million (MVR 1.4 billion) to the state in unpaid island lease fees and other penalties. The company’s accounts were subsequently frozen when the group failed to make the payment.

Kaadehdhoo Airport was given back to the company and the strict sanctions lifted after Qasim ceased his harsh criticism of the government.

Currently, Qasim has declared against President Abdulla Yameen Abdul Gayoom and is backing Former President Maumoon Abdul Gayoom, leader of the divided ruling Progressive Party of Maldives (PPM). However, he has recently curtailed his censure of the state again.

MORE ON BUSINESS