Minister of Transport and Civil Aviation, Mohamed Ameen, has stated that Island Aviation Services Limited (IASL) has undergone positive changes following a restructuring process initiated by the government.
In an interview with state broadcaster, PSM News, the Minister outlined the Ministry’s recent work and noted that the aviation sector had previously been operated under a strong and robust system. However, new challenges were faced due to government changes, and when he assumed office, he said.
The Minister said one of the most important significant reform the current government has brought to the aviation sector was the restructuring of the civil aviation sector in line with the International Civil Aviation Organisation (ICAO) standards, allowing airlines and operators to work together more effectively to provide services.
The Minister revealed that when the new administration took office, IASL was in serious financial difficulty, with losses amounting to USD 136 million. Island Aviation was restructured to overcome these difficulties, and the positive changes are now becoming evident, he said.
"We launched wide-body operations, commenced flights to three international destinations, accelerated the programme of using Dash-8s for our domestic operation ATR fleet, and engaged new contractors for seaplane operations. The restructuring has brought positive changes to Island Aviation,” the Minister said.
IASL has been the most loss-making government company since the COVID-19 pandemic. According to IASL’s financial statements for 2021, the company reported a loss of USD 41.9 million.
IASL’s audit report shows that the company generated a revenue of USD 11.9 million last year. However, the company still recorded a net loss of USD 182,943 after deducting expenses.
IASL operates the national carrier, Maldivian. The government is taking key steps to reduce IASL’s losses. These include expanding the airline’s operations, improving the quality of services provided to customers.