State funding for national airline investments is standard practice, says Ameen

Minister of Tourism and Civil Aviation Mohamed Ameen has said providing state budget support for major investments by the national airline, Maldivian, is consistent with practices followed in many countries.

Speaking in the People's Majlis on Tuesday, Ameen responded to questions from Galolhu North MP Mohamed Ibrahim regarding the operation of Maldivian's wide-body aircraft.

Maldivian began operating its first wide-body aircraft on 6 January 2025.

One of the questions raised by the MP was whether Island Aviation Services (IAS), the parent company of Maldivian, had become dependent on state budget support since the third quarter of last year because of the costs associated with wide-body operations.

Ameen did not comment directly on the company's financial position, saying IAS is an independent company responsible for managing its own affairs. He said, however, that government funding for major capital investments should not be regarded as unusual.

"Major investments of this scale require budget support. This is not an underlying rule unique to the Maldives; you can see it in other countries too—media reports show that even India provides massive support to its major airlines," Ameen said.

He added that state funding for investment projects does not necessarily indicate that a company is operating at a financial loss.

According to the Minister, the broader economic contribution of the national airline should be considered, including its role in supporting tourism and improving travel connectivity for Maldivians.

Ameen also shared operational data on the wide-body service.

He said that during the 16 months since the introduction of the aircraft:

The Minister said the wide-body aircraft currently operate:

Ameen said the expansion of wide-body operations supports the national airline's contribution to tourism and international connectivity.