The Maldives Airports Company Limited (MACL) will finalise its merger with Regional Airports Company Limited (RACL) within this month, according to MACL Managing Director Ibrahim Shareef Mohamed. This move, initiated by the government, is part of a broader effort to reduce expenditure within State-Owned Enterprises (SOEs).
Speaking to local media, Shareef stated that valuations on RACL are currently underway and expected to conclude soon. Once completed, RACL’s head office staff will be relocated to the MACL office building in Hulhulé.
The Managing Director highlighted that the operational model of the merged entity is yet to be determined. The Ministry of Finance’s SOE Reform officials will provide guidance on whether this will result in a complete merger or if RACL will continue as a subsidiary for a transitional period. Shareef noted that the primary focus is on streamlining operations and reducing costs.
Shareef assured that there are no immediate plans to dismiss staff from RACL or make new hires. Instead, existing resources from MACL will be utilised to manage regional airports more efficiently. He added that improving the services offered at regional airports is a key priority.
The merger was first announced in September as part of a government initiative to curtail SOE expenditures. RACL, which relies heavily on state funding, has faced significant financial losses. In 2023, the company recorded a loss of MVR 95 million and continued to operate at a loss in 2024, with MVR 24 million lost in the first quarter alone.
Over the past two years, substantial capital injections have been made into RACL from the state budget. In 2023, MVR 90 million was provided, while MVR 113 million was allocated the previous year.
The integration of RACL into MACL is expected to address these financial challenges, allowing for better resource allocation and operational oversight. However, the future structure of the entity remains dependent on ongoing discussions with the Ministry of Finance.
This merger comes as part of the government’s broader efforts to ensure that state enterprises operate more sustainably and with greater accountability. Whether this move will significantly improve the financial performance of regional airports remains to be seen, but it is clear that the focus is shifting towards fiscal prudence and operational efficiency.
