Blackstone’s Bid for Trans Maldivian Airways Amidst Tourism Resurgence

Blackstone seeks to reclaim Trans Maldivian Airways as lenders exit due to Bain Capital’s loan defaults. TMA’s revenue is anticipated at $177.9 million in 2025. Tourism competition between India and China continues, with infrastructure development aiming to bolster visitor numbers and connectivity.

Blackstone is aiming to regain control over Trans Maldivian Airways (TMA) as financial lenders seek an exit from their investment. Bain Capital previously invested in TMA but faced challenges post-pandemic, leading to the intervention of lenders who took control after a $305 million loan default. A new lender consortium, including Carlyle and others, has taken majority ownership, following debt restructuring. The buyout was originally financed by major commercial banks but was handed over to credit funds that mandated Deutsche Bank to assist in potential sell-off due to the resurgence of leisure travel.

In 2025, TMA’s annual revenue is projected at $177.9 million, with an estimated EBITDA between $70 million and $80 million, according to Rocket Reach. However, the recovery of the aviation industry is closely linked to the return of leisure travelers post-COVID. The company, established in 1993, operates a fleet of 65 DHC-6 Twin Otters, serving as the exclusive transfer service for over 80 resorts across the Maldives. TMA is pivotal for connecting tourists from Male’s international airport to various resorts, having ferried over one million passengers annually at its peak.

The Maldives’ tourism landscape is dominated by competition between India and China. Recent shifts have seen China emerge as the leading tourist market due to its airlines expanding routes. However, India aims to reclaim its tourism rankings, targeting 300,000 Indian visitors in 2025 after a significant decrease in 2024. The Prime Ministers of India and Maldives are working on enhancing airport infrastructure and bilateral trade to attract more Indian tourists.

Indian firms are heavily invested in the Maldivian aviation sector, with Kalpataru Projects International Limited redeveloping Hanimaadhoo International Airport, financed by India’s Exim Bank. This redevelopment, scheduled for completion by March 2025, aims to enhance connectivity in the region. Additionally, India’s Renatus Projects Pvt Ltd is tasked with upgrading Gan International Airport, reflecting ongoing infrastructure development to support increasing tourist numbers. Recent tensions over airport disputes have seen GMR relinquish control of Male International Airport back to local authorities, highlighting the complexities in Maldivian aviation management.

In summary, Blackstone’s pursuit to regain TMA ownership comes amidst a backdrop of reshifting tourism dynamics influenced by the pandemic and geopolitical relations. As China strengthens its hold as the top tourist provider, India is making strategic moves to enhance its presence in the Maldives, particularly through investments in airport infrastructure. The evolving leadership and ownership dynamics in TMA underscore the critical intersection of travel, finance, and geopolitics in the region.

Original Source: m.economictimes.com