Maldives Aiports Company Limited (MACL) Managing Director Ibrahim Shareef Mohamed has said that the company will be merged with Regional Airports Company Limited (RACL) within this month.
Maldives Aiports Company Limited (MACL) Managing Director Ibrahim Shareef Mohamed has said that the company will be merged with Regional Airports Company Limited (RACL) within this month.
Currently, valuations are being done on RACL, he said, adding that this work is expected to be completed soon. He said that when RACL is brought under MACL, all staff at the RACL Head Office will be transfered to the MACL Office building in Hulhule'.
He said that the model on which the company will operate after the merger will be decided on the advice of the Ministry of Finance, due to which he is unable to comment yet on what will be the status of the current Managing Director at RACL. He said that it is only after seeking advice from Finance Ministry's SOE Reform officials that it would be decided if this would be a total merger or instead, a subsidiary for a preset period of time.
In any case, priority will be given to bringing down company expenses and improve company operations, he said.
He further stated that there is currently no intention of dismissing any staff of RACL, or making new hires. However, MACL resources will be used as far as possible in managing regional airports, and services will be improved.
The merging of RACL and MACL was announced by the government last September, in a bid to bring down expenditures in State Owned Enterprises.
Out of the SOEs, RACL is run heavily dependent on the State budget. In 2023, RACL faced losses of MVR 95 million. A loss of MVR 24 million was recorded in the first quarter of 2024 as well.
Last year, MVR 90 million was provided to RACL from the State budget as capital injection. In 2023, MVR 113 million was allocated in the same manner.
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