Air Maldives is in serious financial trouble, having been forced late in February to suspend all international services as a result of a cash shortage.
The airline grounded its international operation on 28 February, although as Airline Business closed for press it hoped to have resumed flights before the end of March, to coincide with the Haj, the annual Islamic pilgrimage to Mecca.
The carrier's international shutdown coincided with the replacement of managing director Fauzi Ayob, who is now replaced by Baharudeen Hassan. Both are employed by Naluri, the Malaysian investment company, which holds 49% in Air Maldives. Naluri also holds a sizeable stake in Malaysia Airlines alongside other airline holdings.
Both Naluri and the Maldives Government, which holds a majority 51% stake in the flag carrier, have been working since the shutdown to re-finance the airline to allow an ambitious expansion plan to proceed.
The plan was announced in the second half of last year and encompasses the lease of three Airbus A310-300s from the manufacturer, and includes a major route expansion.
Until delivery of the first A310-300 last October, the carrier had operated only one A310-200 for international services to Dubai in the United Arab Emirates and Trivandrum in India. It said in announcing the expansion plans that it would establish new routes to London, Paris, Johannesburg, Kuala Lumpur and Bangkok.
Only the European routes were added following delivery of the first additional aircraft and the two other A310-300s, originally due for delivery in November and December last year, have yet to be acquired.
The airline's traditional focus has been on domestic services, which it continues to operate, using two Dornier 228s and a Bombardier de Havilland Dash 8. It plans to add the two additional A310s and says the new routes are only deferred, and not cancelled.
Source: Airline Business
