Maldives national airline's debt woes mount
The increase in the expenditure on salaries was due to the redemption of pre-Covid-19 salaries to the pilots
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By
Ahmed Naif
Island Aviation Services (IAS), which runs the national carrier Maldivian, has not been able to recover from its financial crash during the Covid-19 pandemic, and it has been revealed that the company has suffered a loss of MVR 29.8 million in the first quarter of the year.
The loss made in the first quarter of 2022 is MVR 5.4 million more in comparison to the loss in the last quarter of the previous year. IAS suffered a loss of MVR 24.7 million in the last quarter of 2021.
As per finance ministry statistics for state owned companies in this quarter:
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IAS registered a 3% increase in total revenue over the period, but MVR 17 million from overseas travel had been lost
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Revenue from domestic flights has improved
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The company's losses have been compounded by rising salaries and expenditure
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The increase in the expenditure on salaries was due to the redemption of pre-Covid-19 salaries to the pilots
No improvement in the financial situation
The statistics also note that even after Covid-19, the financial health of the IAS has remained the same, without improvement:
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The company does not have the capacity to pay short-term debts with its current earnings
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The company's debt stands at MVR 529.6 million
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The long-term liabilities of the company are higher than the company's fixed assets
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There is not enough money in the company account to meet the expenses of the company
The statistics advise the IAS to find ways to increase revenue sooner rather than later. It has also suggested that the company continue to focus management on ways to reduce costs.
