MACL at risk of bankruptcy

Maldives Airports Company Limited (MACL) has said today that the company is suffering serious losses as a result of the agreement with airport operator GMR, and that the company may be forced to close down.

Managing Director of MACL Mohamed Ibrahim told Sun Online that the highest income for the company used to come from the airport; however, the agreement with GMR no longer allows collection of any income from the airport.

The company’s expenses, on the other hand, are on the rise.

“The future looks very unpromising. We have received no income from the airport since it was leased out; instead, we have to pay them. We have arrived at a point where the company can’t meet its own requirements. Things are not going in a fruitful direction,” he said.

He said that there are two ways to solve this problem, namely going through a legal process to stop deduction of US$27 from the Concession Fees payable to the government; or annulment of the agreement.

He said that the option of holding discussions no longer exists.

“They [GMR] refer to sections of the agreement to justify their actions. There is no room for discussions anymore,” he said.

Mohamed Ibrahim informed that the only possibilities of income left for MACL are from Air Navigation Charge and its joint venture company, Inflight Catering.

However, Air Navigation Services are provided at a loss, so the only option that remains is income from Inflight Catering.

MACL has been asked to pay US$3.8 million (MVR57.10 million) to GMR, because GMR is not allowed to charge $27 per passenger as per the agreement.

GMR has filed a case in this regard to Singapore’s Arbitration Court.