Regional Airports to be operated by one company

Transport Ministry has made the decision to abolish the several companies created to operate regional airports, and bring to them under one company.

The President revealed this in his speech made at the parliament last Monday.

Transport Minister Dr Ahmed Shamheed said that the plan is to hand over currently operational Hanimaadhoo airport, Kaadeddhoo airport and Kaddhoo airport to Maldives Airports Company (MACL) or Island Aviation. This proposal has already been received from Island Aviation.

“The other proposal will be received next week. We will hand over to the party that submits the best proposal. Or we will hand them over separately. The companies created earlier do not function. The boards are made up of political people, not competent people,” said the Minister.

He said that if both these companies fail to submit good proposals, a new company will be created to operate regional airports. However this will be a last resort.

“The idea is to operate these airports without creating a new company. That would be the last option,” said the Minister.

According to government estimates, two or three new airports will be opened this year. They include Dharavandhoo and Kooddoo airports. The Minister said that operation of the new airports will also be handed over to one of the companies.

Regional airports earn a revenue of Rf 18 million per year, while they cost about Rf 40 million to operate. The Minister said that if all airports are brought under one company, they can be operated commercially, resulting in no government budget having to be assigned for them.

“For example, Maldives Airports Company, Island Aviation. They have experienced and competent people. These companies can operate the airports commercially. Then in about two years, they can stand on their own feet and we won’t have to spend on them,” the Minister said.