Blackstone aims to regain control of Trans Maldivian Airways amid lender exits following Bain Capital’s loan default. A new lender consortium now oversees the operations as TMA aims for a recovery in the travel sector bolstered by a resurgence in tourism. India and China remain key competitors in Maldivian tourism, while significant infrastructure projects by Indian companies are underway to boost connectivity.
Blackstone is attempting to regain control of Trans Maldivian Airways (TMA) as lenders seek to exit their investments. Bain Capital’s aspirations to capitalize on the surge of high-end leisure travelers to the Maldives faltered due to the pandemic, resulting in a $305 million loan default. As a consequence, lenders intervened and a new consortium, led by Carlyle, King Street Capital Management, and Davidson Kempner Capital Management, assumed majority control. Initially, Bain’s acquisition was backed by major banks like Deutsche Bank, Nomura, and HSBC, which later enlisted Deutsche Bank to facilitate a potential sale after traveler numbers began to recover.
Trans Maldivian Airways, which reported an annual revenue of $177.9 million in 2025, is poised to produce approximately $70 million to $80 million in EBITDA as tourism numbers increase. The firm has established itself as a critical provider of transport services among the Maldives’ vast archipelago, operating a fleet of 65 DHC-6 Twin Otters that connect over 80 resorts with more than 400 flights daily. Their services are crucial in ferrying over a million passengers annually between Male’s international airport and the resorts.
Historically, tourism to the Maldives has seen intense competition, particularly between India and China. The Maldives government has set a goal to attract 300,000 Indian visitors in 2025, even after India’s market share decreased from first in 2023 to sixth in 2024 due to geopolitical tensions. In contrast, China’s tourism market in the Maldives has expanded significantly, following growth in its national airline’s operations.
Indian companies maintain strong ties to the Maldivian aviation sector, with the redevelopment of Hanimaadhoo International Airport currently underway by India’s Kalpataru Projects. Funded through a concessional credit line from India’s Exim Bank, the project includes extensive infrastructure upgrades. Similar renovations are being executed at Gan International Airport, awarded to India’s Renatus Projects, enhancing connectivity to the Maldives’ northern atolls.
In conclusion, the situation surrounding Trans Maldivian Airways highlights the complexities of post-pandemic recovery in the travel industry, with Blackstone seeking renewed oversight as new lenders emerge. The dynamics of tourism in the Maldives are evolving as India and China vie for dominant positions, while infrastructure projects funded by Indian firms indicate a deepening bilateral relationship. Overall, the recovery of the Maldives tourism sector seems promising as travel resumes, bolstered by significant investments in connectivity and services.
Original Source: m.economictimes.com
