Gov’t Restructuring Brings Positive Change to Island Aviation
Maldivian airlines plane | Photo: Maldivian
The Minister of Transport and Civil Aviation, Mohamed Ameen, has stated that Island Aviation Services Limited (IASL) is showing signs of improvement following a major restructuring process initiated by the government.
In an interview with the state broadcaster, PSM News, the Minister explained that the aviation sector had previously functioned under a strong and stable system. However, he said challenges emerged due to changes in government, which affected operations by the time he assumed office.
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One of the most significant reforms introduced by the current administration was the restructuring of the civil aviation sector to align with standards set by the International Civil Aviation Organisation (ICAO). According to the Minister, this move has enabled airlines and operators to coordinate more effectively and enhance the delivery of services.
The Minister revealed that IASL was facing serious financial difficulties when the new administration took over, with recorded losses amounting to USD 136 million. In response, the government undertook a restructuring of the company, which he said is now leading to visible improvements.
Among the changes introduced, IASL has launched wide-body aircraft operations, commenced flights to three new international destinations, accelerated the transition of domestic operations from Dash-8 to ATR aircraft, and appointed new contractors for seaplane services.
IASL, which operates the national carrier Maldivian, has been the most loss-making state-owned enterprise since the COVID-19 pandemic. Financial statements for 2021 showed a loss of USD 41.9 million. According to its latest audit report, the company generated revenue of USD 11.9 million last year but still recorded a net loss of USD 182,943 after expenses were deducted.
The government is now taking steps to reduce IASL’s losses by expanding the airline’s operations and improving the overall quality of service provided to customers.
