Adil Moosa,
Managing Director, Maldives Airports Company Limited (MACL)
The Maldives is undergoing an ambitious redevelopment project and significantly expanding the Velana International Airport. Expected to be completed in 2019, the new airport will greatly expand the country's capacity to accommodate tourists, with the aim of welcoming 7.5million passengers per year. The Maldives is looking to use the improvements made possible by the airport development to increase the number of flights from Gulf countries and worldwide and to lay the groundwork for the country's future success

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The government of the Maldives hopes to increase yearly passenger capacity from around 1.5 million to 7.5 million in the upcoming years. What is your strategy and plan to make that a reality?

This airport has been serving the public sector for over 50 years. We have been working through different phases of developing the airport over the years, but never have we had a major development project on this level. On previous projects we may have invested $50-60 million. As part of President Yameen's initiative, we will be investing $1 billion in five years. In order to cater to our projected tourism growth, we need to build the proper facilities, as even our current facilities cannot keep up with the demand of our present level of tourism. We will be bringing in new airlines and so we will need new terminals and new runways. We are also building a new cargo complex, fuelling areas, and sea terminals. Henceforth we are building a new International Passenger Terminal to cater for 7.5 million passengers annually with a state-of-the-art baggage handling system and Aero bridges. We are also adding 3.4 kilometres of new runway that can accommodate A380 aircrafts, a new fuel farm, and a new cargo terminal complex that will cater to three times as much cargo as in the present, and many more new facilities.


What is the time frame for the $1 billion upgradation, and are there still opportunities available for investors or international partners to get involved?

While the actual construction projects are currently well underway and all construction contracts have been awarded, we are beginning to look ahead to our commercial plan, which will offer a multitude of potential commercial activities.


This airport is basically a separate island so it does have space constraints that can be overcome by land reclamation and other innovative solutions. Gulf countries are experienced in those kinds of projects. Where do you see the main synergies between Gulf capital or expertise and this project?

The GCC has certainly been involved in the development projects here in the Maldives, throughout the various phases of airport development. In fact, in our Phase IV construction, the primary funders were from the GCC. The contractors and financers for the airport terminal project are also from GCC countries. In previous projects as well as the current airport project, the GCC have been important partners. Gulf countries are ideal partners because our government and the GCC governments have strong relationships. It is not just private investors, there are even some government-to-government funding relationships.

"Gulf countries are ideal partners because our government and the GCC governments have strong relationships"
What is this airport's current relationship to various Gulf airlines? Do you have any plans to increase direct flights in the upcoming future?

If you look at our tourism, Emirates is the biggest airline from a passenger perspective. Currently they have four direct flights and will introduce one new frequency on November 17 and I would also like to mention that Etihad has also increased its frequency . There are many Gulf airlines we work closely with – Emirates, Etihad, Fly Dubai, Qatar and Saudi Airlines, to name a few. In October, Qatar launched their first service to the Maldives using A350 aircrafts.

If you look at the statistics, we can see growth in the GCC country arrivals. We think this shows that GCC travellers very much want to spend their holidays in the Maldives – it is unlike any other tourist destination. The privacy and exclusivity is unparalleled. The connectivity from Gulf countries to the Maldives is fantastic as well. The connectivity between the UAE and the Maldives in particular is why Emirates carries our highest volume of passengers.


What, in your opinion, will be the socioeconomic impact of this massive renovation on the Maldives?

If you look at economic impact, it starts at the airport because this is the gateway to the country. Our main economic industry is tourism. So if we look at the government's aim to develop 50 resorts in a five-year term, in order to achieve that, the airport needs to be developed as well. If the capacity of the hotels and the airport are mismatched, then these projects will not be as successful. Unlike other airports we not only do operational services but also municipal and utility services too and therefore we carry a high number of staff. We currently have 2,700 airport staff and once the airport development is completed, we expect to double that and have 5,000-6,000 staff on the payroll. All this development is designed to lay the groundwork for success in the Maldives for the next 15-20 years. The airport will benefit activities throughout the entire country. It serves not only the tourists, but also the Maldivian public.

"All this development is designed to lay the groundwork for success in the Maldives for the next 15-20 years"

What are the milestones and timeline for the completion of the airport development?

Since this is a very technical project, it will take time to complete, especially with the limited space we are working with. We have some challenges but our expectation is to complete all components of the development by 2019 and much of it will be finished in 2018, including the new runway. But I have to mention some of the projects are already completed and running.


What will new runway mean for passengers and airlines?

The new runway means a lot for everyone – for the airport, for the islands, for the passengers. One challenge we are currently facing is the fact that we only have a single runway. Because of the current design, when any aircraft lands there is no taxi way. Sometimes wide-body aircraft take 15 minutes to come to the parking stand and this blocks any other aircraft from departing or arriving. Once we have the new runway, we will be able to reduce that 15 minute wait time to 3 minutes because the present runway will change into a taxi way.

Connectivity
Connectivity
Visitors from the Middle East have dropped by 20% this year. With the new runway, the Maldives will be able to accommodate more visitors overall. What do you think is needed to attract more visitors from the Middle East and worldwide?

The main purpose of the airport redevelopment is to cater to more tourists. What we need are more opportunities for all the aircraft. And we are sure that with the improvements at this airport, whichever airline that comes will see high demand and profitability. Even though the GCC numbers have dropped overall, the airlines coming from GCC countries are increasing. Many of the airlines are increasing their number of flights despite passenger numbers being down from GCC countries. But I would say this drop is only temporary and we hoping for an increase in this season.


The Maldives Investment Forum takes place this December, and I understand you are one of the partners. What are your goals at the MIF?

We always want to be a part of these investment forums, particularly those initiated by the government. From there we can introduce ourselves, because we need to market the airport to GCC countries and show the investors what we can offer. Even though we are not currently looking for cross-sector development for the airport we want to maintain good relations with key people in the industry as well as with other investors in GCC countries.


Airports are often a visitor's first impression of a country. How would you describe the experience of landing in Velana International Airport to someone who has never visited before? What makes it unique and how does it reflect the Maldives' as a whole?

Travel to the Maldives is unique. The first sight will be the appearance of emerald like blue lagoons and islands surrounded by white sandy beaches. Despite the gaps in our existing facilities, the service is excellent. Yes, we do not yet have aerobridges and the like, but sometimes, when you come as a tourist you want to feel something else. It is very small and easy. When you come to the airport the aircraft will be parked just next to the terminal. From immigration you can see the plane. Everything is very connected. You will experience the beauty of the Maldives from the moment you step out the door, and will be transported by seaplane or boat to your final destination. In other words, a traveller will experience the Maldivian sun, sand and sea the minute he or she arrives at our airport.

"To bring minor improvements is easy for any president. The current president believes short-term is not good enough"
What is your evaluation of this government's attitude towards business and the development of the country?

Despite challenges, the government has worked to find solutions and to move forward with its vision. President Yameen is a visionary leader. He truly believes that the economy would not grow unless we invest in these major developments, especially in the airport. To bring minor improvements is easy for any president. The current president believes short-term is not good enough. That's why he has taken this bold initiative with the aim of benefitting this country and our people in the long term.


Why would a visitor, particularly people from the GCC, have to enjoy if they spent their holiday in the Maldives?

The Maldives is truly special and its natural beauty unparalleled. People might believe the water and sand can be found elsewhere in the world when they see photos, but in person, you can see there is something different about it. The nature, beauty, privacy and the feeling of the whole country is entirely different.