UAE-based Jetex proposes to take over VIA's VIP terminal
While negotiations are ongoing, it is not yet confirmed whether the MACL board has formally approved the proposal.
Discussions are underway to transfer the operation of the VIP terminal at Velana International Airport (VIA) to Dubai-based aviation company Jetex, according to documents and sources familiar with the matter.
The services are currently operated by Maldives Airports Company Limited (MACL), the state-owned company managing VIA.
A proposal paper from Jetex submitted to MACL outlines the company’s interest in building and operating a new VIP terminal. Under the proposed 25-year agreement, Jetex would invest USD 25 million in the airport and receive 10,000 square metres of land to construct and operate the terminal.
In addition to the terminal operation, Jetex seeks to provide all services currently handled by the airport, including aircraft refuelling. The proposal also requires MACL to allow Jetex access to existing ground handling equipment or facilitate the procurement of required equipment.
As part of the financial terms, Jetex has proposed to share 55% of its annual revenue from operations at VIA with MACL. This amount is subject to a minimum guarantee of USD 5 million per year.
The company’s financial projections over seven years include:
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Estimated gross revenue: USD 65 million
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Estimated operating costs: USD 12.4 million
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Estimated net profit: USD 4.1 million
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Projected revenue for MACL: USD 38.5 million
Jetex has proposed to get two floors of the existing VIP facility until the construction and operation of the new VIP terminal. The plan also includes the development of an additional 10,000 square metres of ramp space to accommodate jet parking.
While negotiations are ongoing, it is not yet confirmed whether the MACL board has formally approved the proposal.
When contacted, MACL Managing Director Ibrahim Shareef declined to comment on the matter.
