Tourism and Civil Aviation Minister Mohamed Ameen says Maldivian’s financial position has started to improve following major changes to the management and operations of the debt ridden national airline.

Speaking at the opening of the new seaplane terminal, Minister Ameen said Maldivian had accumulated significant debt between 2018 and 2023.

The airline’s financial difficulties eventually brought its seaplane operations to a halt, resulted in the loss of contracts and significantly weakened the company, he said.

As a result, major changes were made to Maldivian’s management and operations in 2023, Ameen said.

“I am very happy. The company had been operating with huge debt in the past five years and when I looked at the accounts of last year, last year, God willing, has been the year the company has turned around,” he said.

Minister Ameen said airlines operate on very low profit margins and Maldivian had experienced the consequences of failing to operate within its financial means.

He said the airline’s management must always keep the narrow profit margins of the aviation industry in mind.

Maldivian had covered its operating expenses from its own revenue since its establishment, Ameen said.

He said the airline had paid dividends to the government until 2018, which allowed the government to invest in 10 aircraft for its Airbus and seaplane operations.

“However, the airline is a very low-margin business, and if the airline does not operate properly, the company will have to face the bitter consequences,” Ameen said.

He said Maldivian’s financial difficulties demonstrated how an airline could quickly face bankruptcy if its operator failed to fulfil its responsibilities properly.

Minister Ameen said infrastructure such as the newly opened terminal could help improve the airline’s operations, but stressed that the company’s management must continue to keep its financial responsibilities in mind.