Blackstone acquires seaplane companies in Maldives

Neelam Mathews

Feb 1 2013

Blackstone has announced that a private equity fund managed by it has acquired a controlling interest in two Maldives-based seaplane operators - Maldivian Air Taxi "MAT" and Trans Maldivian Airways "TMA". Following the transaction, Lars Erik Nielsen (Founder, MAT), Lars Petre and Hussain Afeef (majority shareholders, TMA) will retain a substantial shareholding, will continue to play a significant role in the companies, including serving as directors on the board. The terms of the transaction were not disclosed.

With a unique 'one-island one-resort' concept, Maldives has witnessed a strong increase in tourist arrivals over the last ten years with 2012 witnessing an all-time high tourist arrival of almost one million tourists. Established in 1989, TMA is the oldest air services operator in the Maldives and operates over 20 seaplanes. Established in 1992, Maldivian Air Taxi has grown to become the biggest seaplane operator in the world. Together the two airlines will operate 44 seaplanes and conduct well over 100,000 flights per year making them the world's largest Twin Otter operator on land or sea. MAT and TMA connect resort islands with the Hulhule International airport. Both airlines are based on the Hulhule Airport Island in Maldives and together employ over 900 people.

Prakash Melwani, Senior Managing Director and Chief Investment Officer at Blackstone's Private Equity unit based in New York, said "Our investment in MAT and TMA will enable us to build a strong partnership with the Maldives. We have been impressed by the quality of the management teams of both companies and the sophistication of their operations. We are excited to partner with MAT and TMA, whose seaplane operations have contributed significantly to the development of resort islands further away from Male and making them accessible to tourists. Blackstone manages, through its portfolio companies, the largest number of hotel rooms in the world…”