GMR

The government has said that airport services costs have risen by 50 percent since GMR took over Ibrahim Nasir International Airport (INIA) and that the fuel prices offered by the company are the highest when compared with other countries in this region.

A report compiled by a ministerial committee stated that due to the increase in the prices of services and fuel by GMR, airlines have raised complaints and changed their routes. The government does not have control over the prices of fuel, says the report which focuses on the correspondences of the GMR agreement.

“Due to the increase in fuel prices, Sir Lankan Airlines has ceased their flights between Male’ and London. British Airways has also decided to change their Male’-London route to Male’-Colombo-London in March 2013,” stated the report.

It also says that domestic airlines and sea planes have suffered due to the increase in fuel price.Currently GMR is selling jet fuel at a price of $1.21 and oil at a price of $0.82. These values are a 42 percent increase and are now the most expensive fuel prices in the region.

It also states that Europe holds the largest share of the Maldivian tourism market and because flights coming in from Europe are operated as chartered flights, privatizing the airport and the consequent drastic changes in the prices of airport services have caused a decline in the number of low cost flights coming to the airport.

It states that 2010 had seen 517,000 tourists coming in to the country through flights from Europe and that the number has seen a rapid decline to 382,000 in 2012. It also states that seat capacity has declined from 335,054 in 2010 to 249,532 seats in 2012.

The report emphasized that the European market has seen a rapid decline and that lately, most tourists come from Asia. It states that Asian tourist spend an average of 4 days where as the Europeans tend to stay longer and that this has had a significantly effect on resort revenues.

Efforts to contact GMR’s Head of Communications, to ask about the issue of expensive fuel prices, have not been successful as there has been no answer on his phone.