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.

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