Island Aviation and HDC Sign Agreement for Staff Housing Development in Hulhumalé

Island Aviation Services Limited (IASL), operator of the national airline Maldivian, has signed an agreement with the Housing Development Corporation (HDC) for the development and sale of staff housing units in Hulhumalé.

The agreement follows a land purchase transaction finalised in October 2025, in which IASL acquired a 12,481 square foot plot in Hulhumalé Phase I from HDC for MVR 49.4 million. The Civil Court validated the transaction on 29 October 2025, registering IASL as the owner of Lot No. 11725 near Central Park.

The land is designated for a new office building, part of the company's plan to consolidate operations from five separate buildings in Malé, where it currently pays substantial rental costs.

A groundbreaking ceremony was also conducted for a new 12-storey headquarters in Malé was held in September 2025, with completion scheduled for December 2026. The new headquarters, located at the intersection of Majeedhee Magu and Boduthakurufaanu Magu, will span approximately 4,745 square feet and is being constructed by Hunan No. 6 Engineering Company.

According to audit reports, IASL recorded a loss of MVR 2.8 million in 2023. The company's accumulated debt from previous years stands at MVR 1.79 billion, with total liabilities reported at MVR 1.7 billion. Transport Minister Mohamed Ameen has previously raised concerns about the company's financial struggles, noting that mismanagement under previous leadership had contributed to significant debt accumulation.

Despite these financial challenges, the company continues to pursue major capital investments. The staff housing agreement, alongside the new headquarters development and land acquisition in Hulhumalé, signals a broader push toward infrastructure expansion and asset consolidation.

Specific details regarding the number of housing units, project timeline, and pricing structure have not yet been disclosed. The development, once completed, would add to the growing list of staff housing projects in Hulhumalé, following similar initiatives undertaken by other state-owned enterprises such as the Maldives Airports Company Limited, which broke ground on its own staff housing towers in Phase II in February 2018.