MACL has initiated plans to reduce operating expenses and running costs of the company in 10 areas and plans to expand commercial spaces to increase revenue.
Maldives Airports Company Limited (MACL) has decided to cut expenditure by up to 20 percent in 10 areas due to the financial difficulties faced by the Maldives.
The company's Managing Director, Ibrahim Shareef Mohamed, said at a press conference at MACL's VIP building that the decision aligns with the government's measures to reduce expenditures. He stated the aim is to decrease MACL's total expenditure by between 10-20 percent.
Shareef said that MACL being one of the largest electricity consumers, will plan measures to reduce the fuel consumption of its generator sets within the next 15 days.
“The new generator sets will reduce fuel consumption to generate electricity by at least 20 percent,” he said.
He noted that MACL, one of the largest revenue generators for the state, employs more than 4,000 employees. However, he assured that no cost-cutting measures would include reducing the number of employees or affecting their salaries.
Additionally, while reducing key operating costs, MACL will also cut its paper costs.
He said that within the next year, MACL will become a paperless company, ceasing the purchase of new printers and managing operations with the existing ones.
MACL has also decided to cut spending on consumables by 10-15 percent.
1. Expenditure on fuel to be reduced by 20 percent
2. Expenditure on consumables to be reduced by 15-10 percent
3. Expenditure on water
4. Cost of electricity
5. Cost of transportation
6. Company’s internal operating expenses
7. Negotiate for a reduction in bank charges
8. Internal communication to be reduced by 60 percent
9. Expenditure on internal inventory
10. Event expenses
Shareef said that expenditure on events used to be approximately MVR 500,000, but now the company plans to spend less than MVR 100,000 on events.
He also stated that he is investigating areas of water wastage to cut down on water costs. A special team will be hired to address these concerns, Shareef added.
"We will review the travel policy and streamline it to be more cost-effective. Business class travel will only be considered if absolutely necessary. We will also negotiate with airlines and ticketing companies for better agreements," he said.
Shareef indicated that the company will undergo restructuring in the future to reduce operating costs and added that plans are underway to negotiate reducing banking charges.
Shareef highlighted that MACL aims to increase revenue and prioritize planning to expand commercial space.
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