Government Offers USD 18 Million to Take Over Kaadedhdhoo Airport
Kaadedhdhoo Airport managed by Villa Air.
The government has offered USD 18 million to take over Kaadedhdhoo Airport from Villa Air, owned by Jumhooree Party (JP) leader and Maamigilli MP Qasim Ibrahim.
A letter sent on 19 August, following a decision by the Economic Council on 14 August, confirmed the offer. The letter, signed by Mohamed Shahid, Principal Secretary to the President for Corporate Development at the President’s Office, was made public by Qasim on his social media account.
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According to the letter, Villa Air had requested USD 21 million in compensation for the airport. However, the government agreed to provide USD 18 million instead, either through 18 instalments or as a tax deduction.
Former President Abdulla Yameen raised the matter during a People’s National Front (PNF) rally on Thursday evening, claiming that the government was effectively cutting USD 30 million from state tax revenue in favour of Villa. In response, Qasim denied the allegations and published details of the offer. He said the decision to accept the government’s proposed settlement was based on the understanding that the airport would be developed into an international facility with significant profit potential.
Kaadehdhoo Airport Amihla Faraa thakahdhookohlumah kuri iulaan aa gulhigen villa in hushahelhi proposal ah Ethan dhoo kohlehvee sarukaarun gehlunvaaleh bodu kamunneve . E eee falhurah dhookuraa usooleh noon thaa dhoa . Alhugadu menahves ethan hingaigenlibemunai bodu gehlumaa…— Qasim Ibrahim (@qasimibrahim) August 22, 2025
The letter also cited a valuation by global audit firm Ernst & Young, which estimated the cost of developing Kaadedhdhoo Airport at USD 100 million and placed the current value of the facility at USD 18.5 million.
pic.twitter.com/i00wdiGgkj— Qasim Ibrahim (@qasimibrahim) August 22, 2025
Kaadedhdhoo Airport was leased to Villa Air in 2013 for a 50-year period. The lease was terminated in 2017 under former President Yameen, who cited non-compliance with civil aviation standards amid political tensions with Qasim. Villa challenged the termination in court, and in 2018 the Civil Court ruled that the government had unlawfully annulled the agreement. This decision was later upheld by both the High Court and the Supreme Court.
The airport was formally returned to Villa in 2022 along with two lagoons designated for tourism development. However, Villa did not proceed with development.
