Blackstone Reclaims TMA Amid Maldives Tourism Surge
Blackstone, the world’s largest private equity fund, is in the final stages of reinvesting $500 million to regain a controlling stake in Trans Maldivian Airways (TMA), the world’s largest seaplane operator. This move comes eight years after Blackstone sold its majority shareholding in TMA to a consortium that included Bain Capital and Shenzhen Tempus Global Business Services Holdings. The deal marks a full-circle moment for Blackstone, which previously owned TMA from 2013 until 2017 and had made a significant return on its initial investment.
According to a report by the Economic Times of India, Blackstone is on track to buy back TMA at almost the same price it was sold for in 2017. At that time, Blackstone had exited TMA—its largest divestment in the Asia region—by selling its initial $98 million investment for $500 million to the Bain-led consortium. Bain Capital had been particularly attracted to the niche operator during the peak of the tourism and luxury travel market in the Maldives, as TMA specializes in transporting high-end tourists from Male-Velana International Airport to the many exclusive islands of the archipelago.
However, the allure of high-end leisure travel was short-lived for Bain when the COVID-19 pandemic struck, effectively halting long-haul travel for nearly two years. As the pandemic forced global travel to a standstill, Bain and its Chinese partners defaulted on a $305 million loan taken out to purchase TMA. This default enabled the lenders, using securities clauses in the loan agreement, to seize control of the carrier. Subsequent debt restructuring resulted in a new lender consortium, led by Carlyle Group, assuming control of the operator. Although the current owners had hoped to secure a sale price closer to $700 million, the volatile market conditions and recovery in tourism have now made Blackstone’s $500 million offer attractive.
The acquisition comes at a time when tourism to the Maldives has fully rebounded, with increasing numbers of carriers serving Male International Airport. With the market recovering robustly, Blackstone’s decision to re-enter the seaplane business is seen as timely, as the luxury travel segment continues to thrive. TMA, renowned as the world’s largest amphibious aircraft operator, also holds the distinction of being the largest operator of De Havilland Canada DHC-6 Twin Otter seaplanes. Currently, TMA’s fleet comprises 59 DHC-6-300s, three DHC-6-400s, two DHC-6-200s, and a single DHC-6-100, making it a key player in inter-island connectivity in the Maldives.
TMA’s history includes its merger with Maldivian Air Taxi in 2013, a move that consolidated the seaplane operator’s market position. Today, the combined carrier competes with other local operators such as Manta Air and Maldivian on inter-island services, offering crucial links that support the thriving tourism industry.
As Blackstone moves to finalize the deal, industry observers note that the reacquisition is set to reinvigorate TMA’s operations and support further investments in its fleet and technology. The renewed focus on sustainability and enhanced operational capabilities is expected to bolster TMA’s competitive edge, making it a vital asset in an industry poised for growth. With Maldives tourism on the rise, Blackstone’s strategic reinvestment positions TMA for a bright future in a recovering global market.
Related News : https://suspicious-zhukovsky.67-21-117-18.plesk.page/category/air-travel-business/airline-finance/