Minister fails to address questions regarding Island Aviation's financial status; advises seeking clarification directly from the company

When questioned regarding the deteriorating financial situation of Island Aviation, Tourism and Civil Aviation Minister Mohamed Ameen declined to provide a direct answer, instead advising that the information be sought directly from the company.

During Tuesday's People's Majlis sitting, the Member of Parliament for North Galolhu constituency, Mohamed Ibrahim (Kudoo), raised a question regarding the financial structure of state-owned enterprises. The MP stated that state-owned companies are categorized into two financial groups: those that are self-sustaining and those that require government budget support.

The member noted that although Island Aviation is intended to be a self-sustaining entity, the company's financial statements for the third quarter of 2025 indicate that it is currently classified as a budget-supported enterprise. The member further inquired whether the company’s descent into this financial state was a direct result of the wide-body aircraft project.

Responding to the question, the Minister stated that rather than providing an answer in his capacity as a cabinet member, he believes the information should be clarified directly by Island Aviation.

However, the Minister stated that such large-scale investments would require budgetary support. He noted that this practice is not unique to the Maldives, but is a standard approach used globally. Highlighting that major Indian airlines also receive significant backing, the Minister emphasized that providing budgetary support for such capital investments does not signify financial loss for the company.

As a minister, I believe it would be more appropriate for you to seek clarification directly from Island Aviation, as it is an independently accountable entity. However, I would like to add that large-scale investments of this nature typically require budgetary support. This is not a practice unique to the Maldives; globally, you can see examples such as India providing substantial support to its major airlines. Providing assistance for such capital investments does not equate to a loss for the company’s finances.

Minister of Tourism and Civil Aviation, Mohamed Ameen

Furthermore, Minister Ameen stated that consideration must be given to the benefits these airlines provide to the citizens, the national economy, and the tourism industry. However, the Minister noted that a more detailed response regarding the matter should be sought from Island Aviation.