Ameen assures restoration of national airline

Transport Minister Mohamed Ameen on Monday pledged to restore and revitalize the Island Aviation Service (IAS), ensuring that the national airline Maldivian will be taken to new heights.

Speaking at a special ceremony held at Velana International Airport, Ameen announced the launch of wide-body aircraft services aimed at expanding the reach and business of Maldivian.

Addressing the current state of IAS, Ameen shared his concerns about the company’s recent struggles. He explained that while Island Aviation had once been on the right path, its downfall began when it fell into mismanagement. Under the previous leadership, IAS failed to manage its assets, lost key business contracts, and found itself mired in significant debt. As of 2023, the company’s financial situation had worsened drastically.

Ameen highlighted the rapid decline of IAS over the past five years. He compared the company's position at the end of 2018, under the leadership of former President Abdulla Yameen, with its current status.

In 2018, IAS had assets worth approximately MVR 2.5 billion and reported revenues of about MVR 2 billion, along with a net profit of MVR 80 million. The company was paying dividends to the government and operated a fleet of 23 aircraft. Minister Ameen emphasized that the company was growing steadily in the right direction during this time.

However, by 2023, the story had changed dramatically. IAS was now burdened with over MVR 2 billion in debt, having lost many of the business contracts it had secured earlier. The progress IAS had made before 2018 had stagnated, with the company experiencing setbacks, including the suspension of key international routes and the loss of several lucrative seaplane contracts. Additionally, the Dash 8 aircraft were stripped of essential spare parts, leaving them unusable. By the end of 2023, only four aircraft were left in operation, and the company was left with significant financial and operational challenges.

Ameen did not hold back in his criticism of the management under the previous regime. He accused IAS’s leadership of issuing millions in credit to individuals without proper oversight or adherence to financial protocols. This irresponsible lending resulted in substantial financial losses for the company, contributing to its dire state.

“We are working to recover these credits and ensure that those responsible for the irregularities are held accountable,” Ameen said, emphasizing the need for fiscal discipline and accountability in the restructuring process.

Despite the current challenges facing IAS, Ameen expressed optimism about the company's future under the current government. He assured the public that steps would be taken to stabilize the company and set it on the path to recovery. Ameen reiterated that the government was committed to expanding the operations of IAS, especially by increasing its fleet and extending its network of destinations with the introduction of more wide-body aircraft.

“Today marks the beginning of the revitalization process for IAS,” Ameen declared. He explained that the government’s strategy included diversifying the company's operations, improving its financial management, and modernizing its operating systems. These efforts, he said, would eventually lead to a stronger, more resilient Island Aviation.

Ameen stressed that the government’s policy would focus not only on economic viability but also on the broader benefits that a strong national airline can bring to the country. The Maldives, like other nations, faces challenges in the aviation sector, where operations are costly and inherently risky. However, Ameen pointed out that, despite these risks, the national airline plays a crucial role in the country’s economic growth, tourism, and security.

“The airline contributes significantly to the country’s economy, and even if it doesn’t generate profits immediately, it provides vital benefits in terms of national security and infrastructure,” he explained.

The minister emphasized that other countries have successfully supported their national airlines through government intervention, and he believes the Maldives should adopt a similar approach to ensure that its airline is competitive on the global stage.

“The goal is to strengthen IAS’s business, broaden its network, and increase its fleet, ensuring the company can compete effectively in the international aviation market,” concluded Ameen.