Island Aviation Services Limited (IASL) has expressed concern over the increased expenditure incurred due to the national airline, Maldivian, maintaining routes to destinations that have low demand.
Senior officials of IASL, Regional Airports Company Limited, and Maldives Transport and Contracting Company (MTCC) were summoned for questioning by the Parliamentary Committee on State-Owned Enterprises (SOEs).
During the meeting, Managing Director of IASL Mohamed Mihad said Maldivian operates flights to 13 airports in the Maldives and that its flights are not operating in accordance with the established policies. He detailed that the aircraft does not achieve a high load factor and that they can only recover the cost after achieving a minimum load of 70% after selling tickets at the current price.
Additionally, Mihad said that the cost of landing on various destinations is high and that the cost would be low if it were direct flights. He added that the aircraft being used is 24 years old and are in the process of being replaced.
IASL recently procured an ATR aircraft for Maldivian for temporary use in the peak season, as the three ATR aircraft it had ordered are being delayed. IASL stated that two of the aircraft will be brought in in December while the third will be brought in the first quarter of next year. It added that the temporary ATR aircraft now being used will be released once the other aircraft arrive.