Maldives Airports Company Limited (MACL) has announced plans to cut expenditure by up to 20 percent across ten key areas due to the financial difficulties currently faced by the Maldives. In a press conference held at MACL’s VIP building, Managing Director Ibrahim Shareef Mohamed outlined the company’s strategy to align with the government’s measures to reduce expenditures. The initiative aims to decrease MACL’s total expenditure by between 10-20 percent.
Shareef noted that MACL, one of the largest electricity consumers in the country, will implement measures to reduce the fuel consumption of its generator sets within the next 15 days. “The new generator sets will reduce fuel consumption to generate electricity by at least 20 percent,” he stated. Emphasising MACL’s significant contribution to state revenue, Shareef assured that the cost-cutting measures would not include reducing the number of employees or affecting their salaries. MACL employs over 4,000 individuals.
In addition to reducing key operating costs, MACL plans to cut paper costs significantly. Within the next year, the company aims to become paperless, ceasing the purchase of new printers and managing operations with the existing ones. Spending on consumables is also set to be reduced by 10-15 percent.
The targeted cost reduction areas include expenditure on fuel, consumables, water, electricity, transportation, and internal operating expenses. MACL also plans to negotiate for a reduction in bank charges, reduce internal communication costs by 60 percent, and lower expenses on internal inventory and events. Shareef revealed that expenditure on events, which used to be approximately MVR 500,000, will now be capped at less than MVR 100,000. He also mentioned that efforts are underway to identify and eliminate areas of water wastage, with a special team being hired to address these concerns.
The company’s travel policy will also undergo a review to become more cost-effective, with business class travel being considered only if absolutely necessary. Negotiations with airlines and ticketing companies for better agreements are also planned. Further restructuring of MACL is anticipated to reduce operating costs, and plans are in place to negotiate lower banking charges. Shareef highlighted that the company aims to increase revenue and is prioritising the expansion of commercial space as part of its future planning.
These comprehensive measures reflect MACL’s commitment to addressing financial challenges while ensuring the continuity of its operations and support for its employees.
