Maldivian Airlines situation can be improved despite MVR 2 billion debt: Minister

The situation of Maldives' flag carrier, Maldivian Airlines, can be improved despite the massive debt of MVR two billion which the incumbent administration of President Dr Mohamed Muizzu inherited when he took over at the end of 2023, said Transport and Civil Aviation Minister Mohamed Ameen.

The minister said this at a ceremony held at Velana International Airport last evening to mark the arrival of Maldivian's wide-body aircraft, and added that the companies affairs were good until 2018.

However, since then, the previous government of former President Ibrahim Mohamed Solih failed to run Island Aviation and by the end of 2023, the company's assets were not properly managed, expenses increased dramatically and the company was in debt of more than two billion, he said.

"At the end of 2023, the company was in debt of more than MVR 2 billion. Maldivian's Malé, Chennai and Dhaka sectors were at a complete standstill. Many sea plane agreements were also at a standstill. China operations which started in 2013 were also stopped. Ameen, who used to be one of the most experienced captains of Maldivian, said.

Minister Ameen further said four Dash-8 aircraft were unusable due to poor management of the company's assets.

Although Maldivian's situation has deteriorated since 2023, it can be overcome and the current administration has already kickstarted efforts, he assured.

"The results will be better and [the company will] recover with the government's efforts to diversify the company's operations and changes in the company's management system," the minister said.

He also said the government's vision is to strengthen business, increase destinations and expand wide body operations. Ameen said the new aircraft will improve the financial situation of Maldivian and the country's economy will also see positive effects of these efforts.

“With this aircraft, international destinations will increase, tourist arrivals will increase, resort occupancy and domestic flights will [also] increase,” he said.

Maldivian's first wide-body aircraft, the Airbus A-330, is designed for long-haul flights. The aircraft is scheduled to make its first flights to China later this month.