Maldives plans new domestic airfare subsidy under 2027 budget

The Maldives government has proposed a new subsidy to reduce domestic airfares as part of its 2027 national budget, with MVR 111 million earmarked to make air travel more affordable in the northern atolls.

According to the proposed budget submitted to Parliament by the Ministry of Finance and Public Enterprises last week, the government plans to implement a North and South Connectivity Project aimed at reducing domestic air travel costs and improving transport accessibility.

The budget states that the initiative will be financed through the government's transport subsidy allocation.

A total of MVR 300 million has been allocated for transport subsidies in 2027, covering both the proposed domestic airfare subsidy and the expansion of the Raajje Transport Link (RTL) network.

Of this amount, MVR 111 million has been earmarked for subsidies under the North Connectivity Project to reduce the cost of domestic air travel.

However, the budget does not provide details on how the airfare subsidy will be implemented, including eligibility requirements, the routes to be covered or the expected reduction in ticket prices.

The remaining transport subsidy allocation is intended to support the expansion of RTL services to atolls where the network is not currently available, as well as measures to reduce fares for passengers using the service.

The proposed initiatives form part of the government's plans to improve transport connectivity between islands and reduce travel costs for residents.