The government has offered USD 18 million in compensation to Villa Air, owned by Jumhooree Party leader and Maamigili MP Qasim Ibrahim, to take over Kaadedhdhoo Airport. The decision was confirmed in a letter from the President’s Office.
According to the letter, Villa Air had initially sought USD 21 million in compensation. However, the government offered USD 18 million, citing a valuation by global audit firm Ernst & Young, which placed the airport’s current value at USD 18.5 million. The government offered two settlement options: either paying the compensation in 18 instalments over 18 months or adjusting the amount against taxes payable by Villa Group companies within the same period.
Qasim published the letter on his social media accounts in response to public criticism and political remarks. He confirmed his decision to accept the government’s proposed settlement, noting that the airport holds the potential to be developed into an international facility with strong profit prospects.
The issue has attracted political attention, with some opposition figures claiming the government’s decision effectively reduces state tax revenue. Former President Abdulla Yameen, speaking at a People’s National Front rally, argued that the settlement amounted to the government writing off tax obligations. Qasim rejected the claim, saying the offer was in line with the independent valuation and agreed terms.
Public reaction has been divided. Critics on social media accused the government of failing to hold Villa Air accountable for neglecting development commitments and suggested the arrangement reflects a wider pattern of wealth concentration and fiscal strain. Others questioned the timing, arguing that after years of stalled development, the takeover may be too late to address the airport’s deterioration.
Kaadedhdhoo Airport was first leased to Villa Air in 2013 for 50 years. The lease was terminated in January 2017 under former President Yameen, citing non-compliance with civil aviation standards amid political tensions with Qasim. Villa Air challenged the move in court, and by 2018 the Civil Court, High Court, and Supreme Court all ruled the termination unlawful. In 2022, Villa Air regained control of the airport along with two lagoons designated for tourism development, though no major progress was made.
The government’s current offer seeks to resolve the long-standing dispute and bring Kaadedhdhoo Airport under state control once again, with future development expected to transform the facility into an international gateway.
