This week, the government of the Maldives is looking for a foreign company to partner with to enhance its national airline's operations. This joint venture would work to improve the airline amid the headwinds presented by the global health crisis.
Hoping for foreign investment
According to Smart Aviation Asia-Pacific, the president of the Maldives, Ibrahim Mohamed Solih, announced at a recent press conference that the government wants its national airline to partner with a foreign company.
President Solih states that the airline was already running deficits when he took office three years ago, adding, "The airline continues to struggle to overcome the challenges." The global health crisis has indeed exacerbated the situation immensely as tourism is the nation's main economic driver.
What is the current situation?
The president stated during his press conference that discussions are already underway. Of course, holding a press conference and stating that the government is looking for a partner would indicate that discussions have yet to be finalized and that it is still open to proposals from other interested parties.
Indeed, Solih confirmed that discussions currently being held involve two middle eastern companies- their identity undisclosed.
Whoever ends up investing in Maldivian, the president of the country has acknowledged that government subsidies would still be on the table should they be required due to the importance and benefits of having a national airline.
Data from Planespotters.net indicates that Maldivian has a fleet of 12 aircraft, which are as follows:
- One Airbus A320
- One Airbus A321
- Two De Havilland Canada DHC-8-200s
- Eight De Havilland Canada DHC-8-300s
Smart Aviation Asia-Pacific notes that Solih wants to 'enhance' Maldivian's seaplane operations. Without getting much more specific than that, it is unclear what the president means by this as 'enhancement' could range from increased frequencies to upgraded aircraft.
Is a national airline necessary?
The president noted that a national airline for the Maldives was important for the country. While it's true that having a homegrown airline would assist in securing economic interests and trade, it is far from the only option available.
Indeed, there are many countries in other parts of the world without a national airline. These countries have instead opted to rely on foreign carriers for services.
Another option, as we have seen through Estonia's Nordica, is to establish a contract for service with a foreign airline where capacity or capability is lacking. This may be particularly useful for long-distance flights, saving the Maldivian government money that would be spent on running certain airline operations of its own.
Ultimately, though, it looks like the government of the Maldives has opted to sustain the operations of its own airline. Hopefully, an investment by a foreign company will be the financial injection it needs to see itself through this crisis.
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