Minister of Transport and Civil Aviation Aishath Nahula has said that that cutting the cost of airfare on domestic flights have incurred MVR 128 million annually in losses for Island Aviation Services (IAS).

The Minister said this while speaking on Public Service Media’s (PSM) “Rajje Miadhu” program. She had said this in response to a question posed regarding the cutting down on airfare on domestic flights.

Minister Nahula said that while such major losses are being faced by Island Aviation Services, the government has ensured ease in certain areas for the company.

She had said that a 30 percent government subsidy has been granted to the company as well as bearing certain fuel costs at a lower price . Minister Nahula said that even after all these measures have been taken, the company still comes at a loss of an additional MVR 60 million.

The Minister reiterated that the domestic airfare has still remained at a lower cost, even after these losses due to the fact that it is a service to the people of Maldives.

She noted that the biggest reason for a loss is due to the high frequency of available flights in conjunction with a small population of people in the country. The Minister said that as such, the demand is not high enough to incur massive profits.

The Minister said that while cheap airfare is easily not available, the government directive to cut down airfare will ensure that private companies such as Manta Air, Villa Air, and other companies also cut cost of flights. She said that she believes that the people will benefit greatly from this.