Focus is on economic benefit from airline, not profits: Ameen

The Minister of Transport and Civil Aviation Mohamed Ameen said on Monday, that the notion should focused on the perceived economical and other benefits from the national airline even if the carrier does not drive-up profits.

The minister made the remarks at the ceremony held at the Velana International Airport (VIA) on Monday afternoon to welcome the first wide-body aircraft addition to the Maldives national carrier, Maldivian.

According to the minister, national carriers in other parts of the world continue to progress with the support of their respective governments, which should be the approach adopted by the Maldives.

While the airline may not generate significant profits owing to the associated risks and extensive expenditure, the minister said that the focus should be on the economic and other benefits the airline provides to the country.

He further highlighted that Island Aviation began its operations in 2000 with a paid-up capital of MVR 4 million, with 100 percent government ownership, and by 2018 the airline’s asset valuation stood at MVR 2.5 billion while and generated a revenue of MVR 2 billion and a net profit of MVR 89 million.

“Since inception, the company has continued to pay dividends to the state while increasing its fleet to 23 aircraft, and by 2018 the company had expanded in a positive direction in my opinion. However, by 2023 the company is looking at a debt of MVR 2 billion, which is the reality,” Ameen commented.

He also noted that the flight operations of Male’-Chennai, Male’-Dhaka, and Chennai-Dhaka-Male’ routes had halted since 2012.

“Island Aviation continued to grow in a positive direction, but the company’s assets were mismanaged resulting in loss of several key businesses and incurring billions in debt after it went under management that failed to manage the company properly,” Ameen said.

Ameen assured the current government will maintain its efforts to rectify the airline’s operations.

Maldivian welcomed its first wide-body Airbus A-330 on Monday afternoon, which holds a total passenger capacity of 264.

Introduction of wide-body aircraft to expand Maldivian’s aviation routes is a key pledge of President Dr. Mohamed Muizzu, who also officiated the carrier’s international operations.