MEGA Maldives, the troubled Maldivian private airline which once claimed to carry 10 per cent of all tourist traffic into the Maldives, has suddenly suspended operations catching the market by surprise. In a May 2 announcement, the loss-making airline said it was temporarily suspending all flights immediately as part of’ “restructuring and recapitalisation” efforts but [...]

The Sunday Times Sri Lanka

Maldives airline suspends flights

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MEGA Maldives, the troubled Maldivian private airline which once claimed to carry 10 per cent of all tourist traffic into the Maldives, has suddenly suspended operations catching the market by surprise.

In a May 2 announcement, the loss-making airline said it was temporarily suspending all flights immediately as part of’ “restructuring and recapitalisation” efforts but that the company’s other management and administrative functions will continue as before. Officials from other airlines said they were fielding queries from operators for seats for Chinese clientele who were otherwise to fly on MEGA Maldives. The airline launched weekly flights to Colombo last year.

Aviation officials said the airline, largely dependent on the Chinese market, has been badly hit by falling arrivals. Last year, the airline which began operations in 2010, shed staff and cut the number of aircraft to three from five, blaming it on the volatile Chinese market. Strong competition from Maldivian, the country’s national airline, which is flying the same routes as MEGA MALDIVES, also increased losses for the latter.

Vowing to re-start, its founder/CEO George Weinmann said in the announcement that, “we will look forward to returning to flying very soon with a renewed fleet that can service established, under-served and emerging markets.”But other officials said it was unlikely that the airline would resume operations.

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