Introducing rival seaplane operators vital for tourism: MATATO

The Maldives Association for Travel Agents and Tour Operators (MATATO) feels it is imperative that competition be introduced to the country’s seaplane industry to assuage fears that the resulting monopoly has negatively hit tourism.

MATATO President Mohamed Khaleel has alleged that the sale of both Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT) to US-based private equity fund Blackstone in February of this year has already led to increased prices for guests and tour operators.

“We need to find a competitor to [Blackstone],” said Khaleel.

The merged company now operates under the TMA brand.

Several major hospitality groups operating in the country wrote to the Maldives Association of Tourism Industry (MATI) in August claiming their “worst fears” were being realised regarding the monopoly on the country’s seaplane services.

“You are of course aware that ‘The Blackstone Group’s’ recent entry into the market has had the effect of eliminating competition and creating a monopoly in the charter seaplane market in the Maldives,” wrote the CEO of a major multinational operating in the Maldives.

“We were concerned from the outset about the potential disruptions this could cause in the market and have been monitoring the situation closely.”

In the letter, the company said it was particularly concerned at several contractual points it alleged were being “forced” upon operators by TMA as a result of the seaplane monopoly.

At time of press, Minivan News was awaiting a response from both Tourism Minister Ahmed Adheeb and TMA  to the allegations raised in the letter.

MATATO concerns

Aside from the impact of the increased costs being passed on to travel agents and consumers, MATATO President Khaleel alleged operators had not been receiving the same levels of support from the seaplane operator under Blackstone in order to promote the industry.

“For instance, we try to run [familiarisation] trips for journalists as part of promotion efforts for the country as a destination, every year in the past we used to get complimentary seaplane services [for promotional purposes],” he stated.

Pointing to key developments in the Maldives business sector in recent years, Khaleel said that introducing competition to the country’s communications and telecoms sector had helped lead to positive changes in price and services since the introduction of private competitors.

He expressed confidence that there was sufficient finance and know-how within the local aviation industry to try and establish a new seaplane operator locally.

Khaleel stressed that although the emergence of a growing number of domestic airports across the country was providing alternative transport options to using seaplanes, the best solution would be to encourage competitive pricing in the market by encouraging competing operators.

“There are multiple people around who can afford this to try and establish fair competition,” he added.

Blackstone “treated us well”: guesthouse operator

Meanwhile, one small hospitality group providing guesthouse accommodation in Noonu Atoll, which has recently renewed an agreement for seaplane services, confirmed it had faced successive rise in costs for the use of seaplane services over the last 12 months for a one way journey from the capital.

A one way seaplane flight to Noonu Atoll per traveller earlier this year rose to US$300 from US$260. The cost per head recently rose again to US$375 under its latest agreement signed within the last month, the operator added.

According to the guesthouse manager, the increased rates had not drastically impacted upon its operations as the property had worked with a specialist European tour operator to bring in groups of travellers – the costs therefore being absorbed into a wider package rate.

Outside of costs, the operator stressed that transport – particularly for the country’s fledgling independent travel market – was a “big issue” for their guesthouse, with the prospect of being priced out of using seaplanes potentially creating long-term difficulties for business.

“We were hoping that they would not raise the seaplane rates too much, and they didn’t,” the guesthouse manager added. “We would have otherwise had to use a recently opened domestic airport nearby, but this would be such a hassle requiring hiring a speedboat for further transportation. [The seaplane] is easy, smooth and elegant for us.”

The operator stressed that, owing to the costs already associated with using seaplanes compared to other forms of transport, its guests usually only took a one-way flight to the property itself with alternative transport arranged by sea as part of the experience.

The guesthouse manager added that seaplanes also gave an additional exotic appeal to the country as a destination, describing one tour operator as being “astonished” after their maiden flight across the country’s skies using the services.

This appeal, the operator argued, was a major additional selling point of the current package offered to guests visiting the Maldives.

“A monopoly makes it much tougher to do business, so in the long-run, I would say it could be a bit scary for the industry,” the manager stated.

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“Worst fears” over Blackstone seaplane buyout now a reality, warns hotel group

Several multinational hospitality groups have alleged that the decision to sell the Maldives’ two main seaplane operators to US-based private equity fund Blackstone is having a “significant” negative impact on industry profitability – potentially compromising local jobs.

Blackstone announced back in February this year that it had purchased a controlling stake in both the Maldives’ seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT) for an undisclosed sum. Since the merger, the company has been operating under the TMA brand.

Major resort groups – speaking on condition of anonymity – have alleged that a number of properties were losing money on a monthly basis as a result of being reliant on services provided by the now-consolidated national seaplane operator.

“Worst fears”

In a letter addressed to the Secretary General of the Maldives Association of Tourism Industry (MATI) – obtained this week by Minivan News – one of the largest multinational companies operating in the country expressed concern that “our worst fears about the [seaplane] monopoly situation are becoming a reality.”

“You are of course aware that The Blackstone Group’s recent entry into the market has had the effect of eliminating competition and creating a monopoly in the charter seaplane market in the Maldives,” wrote the multinational’s CEO in a letter dated August 5, 2013.

“We were concerned from the outset about the potential disruptions this could cause in the market and have been monitoring the situation closely.”

The CEO added that, with discussions ongoing over securing a seaplane charter contract for its resort properties in the country, the company was particularly concerned at several contractual points being “forced” onto the group by TMA.

According to the letter, these concerns include:

  • A significant increase in prices from previous seaplane contracts
  • A reduction in services and benefits being offered to hospitality groups
  • An exclusivity clause forbidding any deals between the company and other seaplane operators
  • A “contractual link” to use landplane operations it alleges are set to be launched by TMA
  • Minimum contract term of three years for seaplane operations

“As you can see, the terms being forced upon hotel owners are highly anti-competitive and will have a significant negative impact on the market. We are being forced to accept unfavourable terms and TMA is trying to lock itself into a monopoly position by insisting on long-term exclusive contracts,” the multinational hospitality group’s CEO continued in his letter to MATI.

“Ultimately, these costs will be passed on to tourists, which will make the Maldives an even more expensive tourist destination and ultimately deter tourists from visiting , this will cost Maldivian jobs and damage the industry and economy.”

“Sensitive issue”

A senior official for another major multinational hotel group using TMA’s services said it had been experiencing a number of problems in recent months related to transporting clients by seaplane – describing the matter as a “sensitive issue”.

As well as general concerns about service costs, which it said were now “quite high”, the resort source claimed they had also noted issues with TMA cancelling flights without providing prior notification to the resort or its passengers.

In some cases, the resort official alleged that the resort had been given no choice but to provide customers with free meals and even additional nights stay on their property as a result of what it said were last minute cancellations by TMA.

“Although we have had no complaints from guests themselves, this has become quite expensive for the resort,” added the resort official. “I speak with many other resorts and many have said they are losing money monthly by having to provide these transfers [by seaplane].”

The source also noted what they believed was a decline in service in recent months, personally finding travelling with TMA a comparatively “unpleasant experience”.

“Right now, there is no competition as it is only TMA offering services,” the source said.

Domestic alternatives

Meanwhile, the general manger of a resort based in the north of the country, which is currently in negotiations with TMA to renew its contract, also raised concerns over the recent services being provided to guests since the takeover by Blackstone.

“We are not the only resort I know of who believes the services are not as good. There are less flights and more island hopping,” the source claimed.

The manager said that with the recent inauguration of a domestic airport in the country, the resort’s own reliance on TMA was no longer as strong, though they added that many guests preferred the opportunity to travel the country by seaplane where possible.

Despite the preference of many tourists to fly by seaplane, the general manager said that tour operators were now opting to use domestic air travel for customers travelling to the resort as “standard”.

“We are expecting more clients to travel by domestic flights, although some would rather pay to upgrade and fly by seaplane,” added the general manager.

Minivan News was awaiting responses from TMA, Blackstone, MATI Seceretary General Ahmed Nazeer, and Tourism Minister Ahmed Adheeb at time of press.

Investment climate

Speaking this week during a live question and answer session ahead of the upcoming election on September 7, President Dr Mohamed Waheed took full credit for securing Blackstone’s purchase of the country’s seaplane operators.

He cited the deal as an indication of the health of foreign investment under his administration, amidst criticism over his government’s termination of two high-profile foreign investment contracts, including a US$511 million valued agreement with India-based GMR to develop and manage Ibrahim Nasir International Airport (INIA).

“It is ridiculous to claim we are not getting foreign investments now. They are very eagerly coming, even more now. One example of a great investor that I brought in recently is Blackstone,” President Waheed said during the televised event.

Attorney General Azima Shukoor last month accused the previous government of failing to conduct sufficient research before signing several major foreign investment projects that have since been terminated by the present administration.

Speaking at the time of the sale back in February, former Minister of Economic Development Mahmood Razee, also former Minister of Civil Aviation, noted that the purchase of a controlling stake in the only two seaplane operators by a single company had effectively monopolised the market.

“This is a very exclusive market, and critical to the tourism industry. Even though both MAT and TMA operate the same aircraft, they have not previously been willing to cooperate,” Razee said, explaining that the Maldives did not have anti-monopoly laws which may have otherwise obstructed the sale.

Previously, resort managers could approach both companies seeking the better price for seaplane services, upon which they were reliant for the vast majority of their guest arrivals: “Now there is no effective competition, as the major shareholder is one and the same,” Razee said at the time.

He acknowledged that “in an ideal world” prices could come down, as the two companies have been operating identical aircraft but duplicating maintenance and other services.

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Cost of proposed seaplane operations to local islands “unreasonably high”: Transport Ministry

The Ministry of Transport and Communications has decided to negotiate with seaplane operators Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT) to reduce the cost of flights to the atolls, which the ministry believes is “unreasonably high”, reports local media.

The companies submitted a joint proposal in response to the planned Maldivian government initiative to expand seaplane services to the islands to improve the country’s transportation network.

Director General of Regional Airports at the Transport Ministry Saamee Ageel told local media today that the prices quoted by TMA and MAT were “unreasonably high”. The companies proposed being exempt from all aviation surcharges and would charge US$95 (MVR 1,464.90) per trip, per person.

The joint proposal also requested the government compensate the companies if the seaplanes travel with less than 12 passengers on any trip, according to Ageel.

“If that is the case, the government would have to pay about MVR 800,000 (US$51,880.67) per month. These are unreasonably high prices for the government. The government is trying to do this in a sustainable way,” Ageel said.

The Government of Maldives signed an agreement with MAT on September 18, 2012, for the company to provide seaplane services to the islands. Ageel said that agreement has since been terminated.

Currently MAT and TMA make scheduled flights to tourist resorts only.

US-based private equity fund Blackstone bought a controlling stake in both the Maldives’ seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT), in February 2013.

Blackstone, with annual revenue of US$3.119 billion and total assets of US$18.845 billion, bought the seaplane operators for an undisclosed sum.

Senior Managing Director and Chief Investment Officer at Blackstone’s Private Equity unit based in New York, Prakash Melwani, said the investment “will enable us to build a strong partnership with the Maldives.”

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Comment: FDI and strategic security concerns

Blackstone Group, the US-based MNC with multifarious investment interests across the world, has bought majority shares in the only two Maldivian air-taxi companies, together owning a fleet of close to 50 sea-planes, for an undisclosed sum.

Coming within weeks of the government throwing out Indian infrastructure group GMR  from the airport construction-concession contract, questions need to be answered on issues relating to FDI and strategic security considerations.

The government can take pride that FDI has not dried up after the ‘GMR row’. Nor have perceptions of political instability in the country upset foreign investors into staying away. Together, they could ease pressures on future governments, too, in an election year, and presidential aspirants can now promise the moon both to the foreign investor and to their own local population.

Yes, larger issues, settled decades ago, may need to be re-addressed if the ‘GMR kind’ of problem does not end up showing up without notice on a later date.

There is a major difference between the GMR contract and the current Blackstone deal. The Male’ airport and the company were/are state property, whereas the two sea-plane companies are privately-owned, to the extent they stand on separate legs.

Yet when the issue of ‘national security’ and other national concerns were flagged in the GMR case, the same would apply to an overseas ‘monopoly’ having a near-free access to Maldivian air space as any other state-owned airliner.

Strategic assets and national assets

Procedural issues were cited in cancelling the GMR contract, yet the question of handing over the nation’s sole international airport to an ‘outsider’ was also flagged almost from the day the deal was proposed to be signed. The question remains if it was time for Maldivian government to frame laws and rules to monitor and clear FDI in ‘strategic sectors’, and define in the process, what these ‘strategic sectors’ could well be.

Or, will eternal uncertainty about the prospective nature of retrospective investment contracts become the order of the day, with near-arbitrary decisions taken at whim, causing concern all around?

For now, the controversial and equally-rushed Finance Act amendment of 2010, compelling the government to seek parliamentary approval for altering the nature of ‘national assets’ may require re-visiting.

Like the GMR contract, the Blackstone deal was a done deed the day they were signed by the parties concerned. Yet there is no knowing if a future dispensation in Male and/or a newly-elected parliament, if not the present one, will impose new conditions on private sector national players for inducting foreign investments and investors into their existing and prospective ventures.

The irony of the argument based on ‘national assets’ in the case of the GMR remain. The new definition and consequent distinction was made full 30 years after the Maldivian government of the day encouraged FDI in the resort tourism sector in a very big way. It is this that has changed the face of Maldives from being a small and far-away island community living in a past of compulsive contentment into a vibrant nation that has become the desired destination of the global community as a tourism centre and investment-attraction.

As is known, the resort companies, with foreign equity participation and an excessive number of overseas staff at all levels, have been in possession of isolated islets for developing idyllic resorts – most of whose guests are foreigners, too.

The Ibrahim Nasir International Airport (INIA) in the national capital of Male, too, has been brimming with foreign-registered aircraft in their dozens and foreign tourists in their thousands, for years now. There has been next-to-nil security-checks in these islands, barring an occasional clash between the owners and the employees, or in times of accidental death in the adjoining seas.

Against this, the airport that was leased out to the GMR group was brimming with personnel of the Maldivian security agencies, including the MNDF, MPS, Customs and others. Yet, the question of ‘national assets’ was not posed against the resort islands at inception, or posted against them, when the phraseology was included to impose parliament’s will on policy-making.

The American MNC’s concept and confidence in the nebulous run-up to the twin elections for the presidency and parliament in the next 15 months, all in the midst of the tentative nature of the political stability in the nation, is thus noteworthy.

Geo-strategic perceptions

Post-Cold War, the global perception of geo-strategic concerns in the Maldives has undergone a sea-change. ‘FDI’ in Maldives has acquired a new dimension than at a time when the nation was inviting in the tourism sector. It has come to such a pass that FDI in the utilities sector, like desalination and power-supply, have come to be viewed with suspicion from within and anxieties from the outside.

It is thus that the western perception of India’s strategic concerns for the Maldives has revolved around the ‘China factor’ flowing from the ‘String of Pearls’ theory, an American academic construct.

What should add to the national discourse at the time is the emerging scenario of the Maldives becoming an oil-producing country. At least two presidential aspirants, and both former Finance Ministers, have begun talking about exploring oil extraction prospects if elected President. Abdulla Yameen of the Progressive Party of Maldives (PPM) and Gasim Ibrahim of the Jumhooree Party (JP) are otherwise credited with pragmatism in politics and political administration as in the businesses that they run.

Gasim has since recalled how as a losing candidate in the 2008 presidential polls, he had flagged the issue. He has since pooh-poohed Umar Naseer, a contender for PPM nomination for the presidential polls along with Yameen, that oil exploration could affect on the tourism sector, the mainstay of Maldivian economy at present. Yameen has pointed out how in the past oil exploration could not be taken up for want of adequate technology, which is now available.

In these times of ever-increasing fuel costs impacting on national economies the world over, the ‘strategic importance’ of any oil-find has greater significance for post-Cold War Maldives than is acknowledged. An infant democracy, still experimenting with the respective rights and powers of its constitutional institutions, the Maldives will soon be called upon to define, and decide upon, the nature and definitions of ‘strategic assets’ before moving on to the next stage of declaring what the nation intends getting out of them, and is willing to give in, too.

After all, oil exploration, like air-taxiing and airport-development, involves big-time FDI, relative to the Maldives’ aspirations and requirements. If one were to acknowledge that the Maldives cannot fund such ambitious projects without external funding, technology and skilled labour, then identifying sectors and partners assumes as much significance as electing a domestic government, entrusted with that very task.

The writer is a Senior Fellow at the Observer Research Foundation

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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US private equity fund buys both Maldivian seaplane operators for undisclosed sum

US-based private equity fund Blackstone has bought a controlling stake in both the Maldives’ seaplane operators, Trans Maldivian Airways (TMA) and Maldivian Air Taxi (MAT).

Blackstone, with annual revenue of US$3.119 billion and total assets of US$18.845 billion, bought the seaplane operators for an undisclosed sum.

Senior Managing Director and Chief Investment Officer at Blackstone’s Private Equity unit based in New York, Prakash Melwani, said the investment “will enable us to build a strong partnership with the Maldives.”

“We are excited to partner with MAT and TMA, whose seaplane operations have contributed significantly to the development of resort islands further away from Male and making them accessible to tourists. Blackstone manages, through its portfolio companies, the largest number of hotel rooms in the world and this transaction marks our sustained enthusiasm for the travel and tourism space,” he said.

Founder of MAT Lars Erik Nielsen and majority shareholders of TMA, Lars Petré and Hussain Afeef, will retain “a substantial shareholding and continue to play a significant role in the companies, including serving as directors on the board,” Blackstone said in a statement.

“The Maldivian economy will gain from the presence of one of the world’s largest and most respected investment firms,” said Petré.

Nielsen stated that the move will benefit the career growth of the workers employed by the two airlines.

“In addition, together we look forward to delivering more efficient services to the tourists coming to the Maldives and the resorts in which they are staying. This combination will increase service efficiency to our resorts,” he said.

TMA Director Afeef said Blackstone would “bring to Maldives a wide global experience and an established track record in the tourism and hospitality sector. Incorporating global best practices would be beneficial not just to the companies but to the tourism industry, in general.”

TMA was started in 1988 as a helicopter operator under the name ‘Hummingbird’, which was changed to TMA in 1998 after the fleet was switched to Twin Otter aircraft. Competing operator MAT was set up in 1992.

Together both airlines operate over 40 aircraft and play both an iconic and critical role in the country’s tourism industry, transferring arrivals at Ibrahim Nasir International Airport (INIA) to resorts in neighbouring atolls and greatly expanding the capacity for tourism around the capital. Domestic air travel over longer distances – to destinations such as Addu Atoll – is served by conventional aircraft.

The substantial investment comes months after the Maldivian government expropriated the main international airport from Indian infrastructure giant GMR, declaring its concession agreement void and ordering it out of the country within seven days. The US$511 million project was at the time the country’s single largest foreign investment.

Tourism Minister Ahmed Adheeb said the Blackstone investment was a sign of confidence in the Maldivian economy, and represented a “green light” to other foreign investors.

“When a large company such as Blackstone invests in the Maldives, it shows that investors have confidence in the Maldives. Moreover, investors have set their sights on Maldives and is on their radar,” Adheeb told local media.

Deal creates a monopoly in critical sector

Former Minister of Economic Development Mahmood Razee, also former Minister of Civil Aviation, noted that the purchase “is not really a foreign investment since no additional equity is being brought into the country. Another firm has just bought the shares,” he said.

Moreover, the purchase of a controlling stake in the only two seaplane operators by a single company had effectively monopolised the market, he warned.

“This is a very exclusive market, and critical to the tourism industry. Even though both MAT and TMA operate the same aircraft, they have not previously been willing to cooperate,” Razee said.

“Now, without any discussion, they have been taken over and effectively become a monopoly,” he said, explaining that the Maldives did not have anti-monopoly laws which may have otherwise obstructed the sale: “We were looking at these when we were putting together the economic reform package [under the former government].”

Previously, resort managers could approach both companies seeking the better price for seaplane services, upon which they were reliant for the vast majority of their guest arrivals: “Now there is no effective competition, as the major shareholder is one and the same,” Razee said.

He acknowledged that “in an ideal world” prices could come down, as the two companies have been operating identical aircraft but duplicating maintenance and other services. However the end of this practice could affect jobs, he suggested.

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Civil Aviation Authority investigation under-way over capsized seaplane

The Maldives Civil Aviation Authority (CAA) has confirmed that an investigation is presently taking place into an incident that saw a Trans Maldivian Airways (TMA) seaplane capsized near to the Conrad Maldives Rangali Island resort yesterday.

CAA Chief Executive Hussain Jaleel told Minivan News today that no one had been injured in the incident, which had resulted in some structural damage.

“We are investigating the matter right now,” he said. “There are reports of some structural damage so we are required to do this, but there have been no injuries recorded.”

When questioned as to whether the incident may lead to a wider review of current seaplane procedures in the Maldives, Jaleel said that it was not possible to say without the report’s conclusion.

“Let’s see what the report finds first,” he added.

Citing an unidentified contact who claimed to be present on the resort at the time, newspaper Haveeru reported yesterday that the incident occurred after a propeller on the seaplane’s left side struck a platform. The collision was reported to have broken a pontoon and resulted in the aircraft then capsizing.

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Aviation authorities await seaplane crash report before considering safety review

The Civil Aviation Department has said that it will wait to complete an investigation into the crash landing of a Trans Maldivian Airways (TMA) seaplane near Biyaadhoo Island Resort during a training flight this morning, before considering amendments to flight policy in the country.

The aviation body’s Director General, Hussein Jaleel, confirmed to Minivan News today that no injuries were reported to the two pilots involved in the crash – reported to be the only people on board at the time. The spokesperson said that investigators currently believed the crash had resulted only in structural damage to the seaplane after it came down near an assigned landing point in a reef by the South Male’ Atoll resort.

Jaleel said that he was presently unable to presently reveal many details about the collision, other than that the Civil Aviation Department’s Accident Investigation Committee were now interviewing the pilots involved in the flight as part of ongoing investigations into a possible cause of the crash landing.

An official spokesperson for TMA – which is one of the country’s two largest operators of seaplane services along with Maldivian Air Taxis – was unavailable for comment when contacted by Minivan News at the time of going to press.

However, in terms of the possible need to implement changes in regulation or seaplane policy following the crash, Hussein Jaleel said authorities would wait for investigations to be completed on today’s incident before making any changes. “However, if it is revealed that new policies are required we would ensure we did this,” he added.

Seaplane incidents

When asked about the number of incidents investigated in relation to the country’s seaplane operations from the start of this year, Jaleel said he did not have the exact figures on him at the time of going to press as aviation authorities investigated incidents of varying severity in the course of their work.

However, the aviation department director general told Minivan News that in terms of events like a crash landing, this was believed to be the first case of such an incident occurring in 2011.

Back in December 2010, the Civil Aviation Department confirmed that a collision had occurred between a Maldivian Air Taxi seaplane and another aircraft at Male’ International Airport that resulted in no injuries or major damage being recorded.

Authorities said at the time that investigators had found the collision to be a minor accident involving the wingtip of an aircraft colliding with another craft, an event which was not seen as “a major safety concern” for future operations.

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Aircraft collision not a major incident, says Civil Aviation Department

A collision that occurred yesterday between a Maldivian Air Taxi seaplane and another aircraft at Male’ International Airport resulted in no injuries or major damage, the country’s Civil Aviation Department has said, claiming it has no concerns over the safety of the aircraft.

Hussein Jaleel, Deputy Director General for the Civil Aviation Department that oversees airline regulation, said it had been made aware of a collision yesterday, which it downplayed as a minor accident involving the wingtip of an aircraft colliding with another aircraft that was not seen as “a major safety concern.”

“There was a collision yesterday involving a Maldivian Air Taxi aircraft, but it was actually not a serious incident,” Jaleel said. “No person was injured and no damage was recorded to the aircraft that could affect flight operations.”

Local newspaper Haveeru reported that the seaplane collided with the wing of an aircraft taking-off from Hulhule, at 6:30am while it was approaching the water runway.

The official, however, said the number of passengers and the cause of the accident could not be identified yet, as a full report has not been filed so far.

“We receive urgent reports only if it is a serious accident. So it will take some time to receive reports of minor accidents,” the official said.

MAT Ground Operations Manager, Inthikaab Ahmed said he was not aware of any accidents.

A spokesperson for airline operator Maldivian Air Taxi told Minivan News that there had not been any reports of an accident or minor collision in the company’s fleet, a track record they claimed has not changed for some time.

When asked about the Civil Aviation Department claims, the company spokesperson said its management had not been informed of any incidents with its vehicles and it had no idea where the information had came from.

“We [Maldivian Air Taxi] have had no accidents in the last few years, maybe even longer,” said the spokesperson. “There have not been any collisions.”

Regardless of whether the accident reported was a serious or a minor collision, Jaleel said Civil Aviation Department regulations required an investigation into any accident. However he added that “no further reports would be required” in relation to yesterday’s incident.

“We have no issues that the accident was the result of negligence, though if we ever have any serious concerns relating to safety issues then we would of course take action,” he added.

The Civil Aviation Department claimed it therefore remained confident of the effectiveness of safety measures employed by seaplane operators in the Maldives.

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