The Maldivian Aviation Academy, operated by Island Aviation Services (IAS) in Addu city Gan, has been sold to a foreign party at a huge financial loss.
Sources familiar with the transaction told Adhadhu that IAS invested USD 2 million (about MVR 30.8 million) to set up the school. However, the property was sold to Zenith Aviation Academy for about USD 900,000.
"This is not only selling the investment at a low price, but also giving up a huge amount of long-term revenue for a state-owned company," an aviation official said.
Zenith Aviation Academy was registered last year. According to the business portal, the company's Managing Director is Sandeep Kumar. Zenith is a joint venture between Atoll Consultancy Pvt Ltd and Simplyfly Holdings Group Ltd. Zenith has now started the academy's courses.
IAS could not be reached for comment. However, Transport Minister Mohamed Ameen said the flight school was sold because it was causing financial damage to the IAS. He also said it was rare for a company to operate an airline along with a flying school.
"It was sold to avoid loss. It was sold to the party with the best proposal. I don't know the value," Ameen said.
The Maldivian Aviation Academy began operations in 2022, when the school run by the Asian Academy of Aeronautics was involved in a scandal, causing disruptions in courses. The government handed it over to the IAS to resolve the students' complaints.
Officials who spoke to Adhadhu said Zenith Academy has already received a large number of foreign students. They also believe that the flight school will benefit the company.
"This is a missed opportunity for the Maldives. There is already a shortage of pilots all over the world and even if we target only India, we will not run out of students. Zenith is doing that," an aviation official told Adhadhu.
