Kadhdhoo Airport Faces MVR 221 Million Loss
Photo: Coral Glass Media
The Auditor General’s Office revealed that Kadhdhoo Airport Company Limited, responsible for operating the Kadhdhoo Military Airport, has encountered a loss of MVR 221 million since its establishment. Originally founded in 2011, the company took over the airport’s operations, which later transitioned into military use as the “Kadhdhoo Military Base” in 2014. Despite its military role, the airport continues to facilitate public flights.
The Financial Year Report of Kadhdhoo Airport Company Limited released by the Auditor General’s Office outlined three main revenue streams for the airport: aeronautical operations, commercial operations, and property leases. The audit revealed that a significant portion of revenue was allocated to equipment-related expenditures, surpassing the income generated by the airport, which stood at a modest MVR 6.6 million.
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The report highlighted key factors contributing to the financial setback. In 2019 and 2020, losses amounted to MVR 27.2 million and MVR 25.2 million, respectively. A striking 84 percent of the revenue was allocated to salaries and allowances for airport employees. The global impact of the COVID-19 pandemic further aggravated the financial strain, adversely affecting the airport’s revenue in 2020.
Notably, the audit report emphasized outstanding payments from other companies, with Island Aviation being the primary debtor, owing MVR 36.5 million to Kadhdhoo Airport Company Limited. The Auditor General’s Office underscored the urgency for the airport to address its financial challenges, proposing a reduction in current expenditures as a viable solution.
In response to the audit findings, the Auditor General’s Office recommended that Kadhdhoo Airport Company Limited implement stringent cost-cutting measures to improve its financial standing. The call for financial prudence comes as the company navigates the complexities of revenue allocation, expenditure management, and external economic challenges.
