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State appeals HC verdict to return Kaadehdhoo Airport to Villa Air

Fathmath Shaahunaz
07 October 2020, MVT 15:56
Kaadehdhoo Airport in Gaafu Dhaalu Atoll. FILE PHOTO/MIHAARU
Fathmath Shaahunaz
07 October 2020, MVT 15:56

The state filed an appeal with the Supreme Court, seeking to nullify the High Court's ruling that the government had seized Kaadehdhoo Airport from Villa Air in 2017 unlawfully.

Although the top court scheduled a hearing on Wednesday, it was later cancelled.

The state had handed over operations of Kaadehdhoo Airport in Gaafu Dhaalu Atoll to Villa Air in 2013 for a period of 50 years.

However, the company, which is part of the conglomerate Villa Group owned by Qasim Ibrahim, the leader of ruling coalition member Jumhooree Party, was accused of violating Civil Aviation regulations and the government nullified the contract in 2017.

The Civil Court ruled in November 2018 that the termination was unlawful and ordered the government to hand the airport back to Villa Air, adding that there were legal grounds for the company to demand compensation for damages incurred.

The High Court upheld the lower court's ruling in April 2019.

In its verdict, the appellate court had noted that the government had terminated its agreement with Villa Air based on a report by Island Aviation Services (IAS) regarding an aircraft accident, and an assessment report publicised by the Civil Aviation Authority.

However, the High Court had pointed out that IAS' report did not allege that its aircraft was damaged during landing at Kaadehdhoo Airport, and that IAS further stated that it will continue to operate to Kaadehdhoo.

Furthermore, the verdict noted that the Civil Aviation's 2016 assessment report did not order to halt operations to Kaadehdhoo, while its follow-up assessment granted an extension to Villa Air to complete safety procedures. Following the assessments, Civil Aviation granted the operating license to Villa Air in January 2017.

The High Court verdict further highlighted that the agreement between the government and Villa Air recognised Civil Aviation as the final authority on matters related to airport operations and license, which the state could not alter.

Hence, the High Court ruled that the government's decision to terminate the Kaadehdhoo Airport agreement was unlawful, and upheld the Civil Court's verdict to return the airport to Villa Air.

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