Maldives Asks India to Manage Hanimaadhoo Airport; AAI Begins Study After GMR Ouster.

The Airports Authority of India (AAI) has been asked to study a significant request. The Maldives government is seeking Indian companies to manage the newly upgraded Hanimaadhoo International Airport. This request was formally made during the airport’s inauguration. President Mohamed Muizzu presented the plea to Civil Aviation Minister K. Ram Mohan Naidu.

This development marks a new phase in India-Maldives aviation ties. It occurs more than ten years after a major contract dispute. The Ministry of Civil Aviation directed the Airports Authority of India to evaluate the proposal. The study focuses on engaging Indian firms for the airport's management.

Hanimaadhoo Airport: A New Regional Hub

The Hanimaadhoo project is a crucial infrastructure upgrade. India provided financial support for the redevelopment and expansion. This assistance came via a $800 million Line of Credit from the EXIM Bank of India. The construction contract, valued at $136.6 million, was awarded to the Indian company JMC Projects.

Key Infrastructure Details

• Runway: The new runway is 2,465 meters long. It can accommodate larger commercial aircraft. This includes the Airbus A320 and Boeing 737 models.
• Capacity: The new passenger terminal is designed to handle 1.3 million flyers annually. Some reports indicate a capacity of up to 1.5 million passengers. This expansion aims to boost tourism in the northern Maldives.
• Significance: The airport is positioned as a catalyst for economic growth. It will also enhance global connectivity for the region.

Shadow of the GMR Dispute

The request for Maldives airport management assistance is notable given past events. Over a decade ago, a major Indian infrastructure conglomerate was expelled. In November 2012, the Maldives Cabinet abruptly cancelled a contract. This deal was with GMR Group for the Male International Airport.

The $511 million deal was the Maldives' largest foreign investment at the time. The government declared the contract void. GMR was given a seven-day ultimatum to leave the country.

Arbitration and Compensation

The dispute led to a four-year legal battle. In October 2016, an international tribunal ruled against the Maldives. The Singapore Arbitration Centre awarded GMR a compensation of $270 million. The tribunal found the contract termination to be wrongful.

Following GMR's ouster, the airport's operations were handed over to the government-owned Maldives Airports Company Limited. A Chinese company, Beijing Urban Construction Group, was later awarded construction works.

Strategic Implications for Aviation Ties

The current proposal to engage Indian companies for Hanimaadhoo management signals a potential reset. It suggests a renewed focus on bilateral cooperation. The Airports Authority of India already manages 113 airports domestically. Thirteen of its airports are run by private operators like GMR and Adani Group. This provides a strong foundation of expertise for the AAI study.

For the aviation sector, this move carries both opportunities and risks. Opportunity lies in establishing a long-term operational presence for Indian firms. This would secure a key regional hub. The risk involves navigating the complex political landscape. The past GMR Male International Airport dispute serves as a cautionary tale.

This decision will be closely watched by the global aviation industry. It highlights the strategic importance of airport infrastructure in the Indian Ocean region. For more commercial aviation news, visit flying.flights. The outcome of the AAI study will determine the future of this high-profile partnership.