GMR Malé International Airport Private Ltd (GMIAL), a subsidiary of GMR Infrastructure Ltd (GIL), stated (25-Nov-2010) it has achieved financial closure for the USD511 million project to modernise, expand and operate Malé International Airport. On 24-Jun-2010, a consortium led by GIL, in partnership with Malaysia Airports Holdings Berhad (MAHB), was awarded the concession for the Malé Airport for a period of 25 years. GMIAL is the special purpose vehicle formed in the Maldives for the project, with GIL holding 77% and MAHB the remaining 23%. The Male project is being funded through a combination of debt and equity in the ratio of 70:30. The debt component of USD358 million has been tied up with Axis Bank Ltd, Singapore branch, which is acting as the sole underwriter and mandated lead arranger for the entire debt facility. The debt has a door-to-door tenure of 12 years with ballooning repayment over seven years commencing from June-2015. SBI's Maldives branch is acting as account bank for the debt facility. The company is aiming at completing the project in four years. [more]
GMR Group achieves financial closure of GMR Male International Airport project
You may also be interested in the following articles...
MEGA Maldives Airlines Part 2: MEGA attempts to diversify beyond the China-Maldives market
MEGA Maldives Airlines is attempting to reduce its reliance on the China-Maldives market with new routes to India, Malaysia and Saudi Arabia. By the end of 2016 MEGA plans to resume services from Male to Kuala Lumpur and Jeddah – markets it briefly served in early 2015 – and commence operations to India, with an initial service from Male to New Delhi.
The new services, along with other new routes which are under evaluation, are part of a revisited diversification strategy. MEGA currently only serves China, but since commencing operations in 2011 has experimented several times with other markets. MEGA, which operates the same number of aircraft and routes as three years ago, needs to diversify successfully to resume growth.
This is the second half of an analysis report on MEGA Maldives. The first half examined the recent contraction in the China-Maldives market and intensifying competition. This half will focus on MEGA's plans for entering other markets, and its previous attempts at diversification.
MEGA Maldives Airlines Part 1: China-Maldives market contracts and competition intensifies
The Maldives has experienced a drop in visitor numbers from China, its largest source market, prompting MEGA Maldives Airlines to restructure its network and defer expansion. The privately owned leisure airline currently only operates a fleet of three aircraft – the same number of aircraft as three years ago – and has fallen well short of an initial objective to operate 18 aircraft by the end of 2016.
MEGA’s scheduled network is limited to three destinations in China. The airline is finally starting to increase its reliance on other markets – including India, Malaysia and Saudi Arabia – under a diversification strategy which it has had for a few years but has so far struggled to implement.
MEGA needs a more balanced network to resume growth. Its recent troubles, including layoffs, highlight the risk of relying too much on a single market.