Blackstone aims to reclaim Trans Maldivian Airways as lenders exit a tumultuous situation following Bain Capital’s default on a $305 million loan. A consortium led by Carlyle has taken majority control amid a resurgence in tourism. The Maldives targets heightened tourism from India and China, bolstered by infrastructural development funded significantly by Indian investments.
Blackstone is poised to regain control of Trans Maldivian Airways amid lender actions to exit the venture. Bain Capital’s plans directed at capitalizing on the high-end leisure market in the Maldives faltered post-pandemic, primarily after the firm, along with Tempus, defaulted on a $305 million loan. This failure prompted lenders to seize control, leading to a debt restructuring that placed a consortium led by Carlyle, King Street Capital Management, and Davidson Kempner Capital Management at the helm, following a resurgence in leisure travel.
The prior Bain buyout was initially funded by major banks, including Deutsche Bank, Nomura, and HSBC, which subsequently divested to specialized hedge and credit funds. In light of a potential business sale, Deutsche Bank has been tasked with exploring options as tourism in the Maldives begins to recover. According to Rocket Reach, Trans Maldivian Airways Pvt. Ltd. projected an annual revenue of $177.9 million for 2025, with expectations for EBITDA ranging from $70 million to $80 million.
Trans Maldivian Airways, which was established in 1993 and started as Hummingbird Island Helicopters, now boasts a fleet of 65 DHC-6 Twin Otter seaplanes. This fleet, which includes aircraft branded for various resorts, completes over 400 daily flights connecting upwards of 80 prestigious resorts across 16 atolls. As the sole transfer partner for these resorts, TMA facilitated the transportation of over 1 million passengers annually prior to the pandemic, significantly depending on the hospitality and travel sectors.
With international tourism gradually making a comeback, India and China’s competition for the premier position in Maldives tourism is evolving. The Maldivian government aims to attract 300,000 Indian tourists by 2025, following a decline in interest in 2024. Strategic meetings between Indian Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu underscore the commitment to enhance bilateral trade and improve air connectivity, reflecting a shared interest in developing local airport infrastructures.
Concurrently, China’s significant rebound consolidates its status as the leading tourist market for the Maldives, driven by the expansion of its national airline’s operations. Indian investments remain crucial in Maldivian aviation, particularly with the ongoing redevelopment of Hanimaadhoo International Airport, facilitated by Indian Kalpataru Projects and financed via a concessional credit line from India’s Exim Bank. This redevelopment will enhance accessibility to the northern atolls, with a completion date expected in March 2025. Similarly, upgrades at Gan International Airport, awarded to India’s Renatus Projects, will further improve air transportation in the region.
In summary, Blackstone’s anticipated regaining of control over Trans Maldivian Airways indicates a significant restructuring amid shifts in the tourism market. The pandemic initially stalled growth, leading to lender takeovers and subsequent operational changes. With both India and China vying for dominant positions in Maldivian tourism, enhanced airport facilities and improved connectivity promise to shape the future landscape of the region’s travel industry. The commitment to infrastructure development and strategic partnerships suggests a positive outlook for both tourism and aviation in the Maldives.
Original Source: m.economictimes.com
