Blackstone looks to return to Trans Maldivian cockpit as lenders look to exit

Blackstone, the world’s largest private equity fund is in final stages to buy back Trans Maldivian Airways (TMA), eight years after selling it to a consortium of Bain Capital and Chinese conglomerate Tempus Group at nearly the same price it sold it, said people aware of the development. This would see the ownership change reach full circle while the operator, the largest sea plane charter operator worldwide, underwent turbulent phases, exacerbated by Covid 19 pandemic that precipitated bankruptcy and a debt restructuring.

In 2017, Blackstone made its biggest exit across Asia of that time, monetising its $98 million investment for $500 million (Rs 3525 crore) to the Bain led consortium. A total investment of $115-$120 million was made in debt and equity. The 4.8-fold return on a four-year investment was billed as the biggest pay day for the firm across the team, especially the India franchise that used to manage the investment.

But Bain’s plans to cash in on high-end leisure travellers flocking from Asia and Europe to the Indian Ocean archipelago, crash landed after the pandemic took the wind beneath the wings from the business. When the Boston based buyout group and Tempus failed to repay a $305 million loan, the company’s lenders took control of the business, invoking underlying securities. Subsequent debt restructuring saw a new lender consortium led by Carlyle, King Street Capital Management and Davidson Kempner Capital Management (DK) take majority control of operations. The Bain buyout was originally financed by commercial banks led by Deutsche, Nomura and HSBC but sold it down to several hard-nosed hedge and special-situations credit funds. They in turn mandated Deutsche Bank late last year to help in the potential sale of the business, after leisure travellers have started to trickle back.


According to Rocket Reach, data intelligence platform, the Trans Maldivian Airways Pvt. Ltd. annual revenue was $177.9 million in 2025. Industry peers believe it would clock 70-80 million in EBITDA.

Sources said several PE firms like Apollo Global Management, CVC Capital Partners, Carlyle’s buyout group as well as business houses like Tatas and Interglobe were tapped to gauge interests. But most stayed away from a sector that has been prone to external shocks like the pandemic, global financial crisis or even SAARS. The lenders have been expecting a $550-700 million valuation, they added but potential suitors were lukewarm at that price.

Blackstone, Carlyle, DK declined to comment. Mails sent to King Street Capital did not generate a response till press time Thursday.

From its inception in 1993 as a company operating a helicopter fleet under the name Hummingbird Island Helicopters, currently it operates a fleet of 65 DHC-6 Twin Otters, including 13 resort-branded aircraft and 2 VIP-configured planes, TMA connects over 80 world-class resorts across 16 atolls with more than 400 daily flights, according to a company release. The sea planes have slender pontoons or floats, mounted under the fuselage, which helps them land on and take off from water.

As the exclusive transfer partner to over 80 resorts ferrying over 1,000,000 passengers per year among the Maldivian islands, the fortunes of TMA is closely linked to the travel and hospitality industry. During Covid, the company stopped scheduled flights and ground its fleet, transitioning to an on-demand service instead. At its peak, the figure reached as high as close to 1 million passengers on 120,000 flights annually. The tourists are picked up from Male’s international airport and ferried to resorts scattered over the almost 1,190 coral islands that make up the island nation.

India and China have been competing for the top spot in Maldives tourism, but the trend has shifted in 2024.

The Maldives government has said that aims to attract 3,00,000 Indian tourists in 2025 after their ranking dropped from first place in 2023 to sixth in 2024 due to strained ties between Male and India. Prime Minister of India Shri Narendra Modi and President of Maldives H. E. Dr. Mohamed Muizzu met on 7 October 2024, to discuss bilateral trade “To jointly work in harnessing the full potential of Hanimaadhoo and Gan airports that are being developed with Indian assistance as well as other airports of Maldives. Towards this end, both sides will also consider measures to strengthen air connectivity, attract investments and collaborate for efficient management of these airports,” MEA had said in a statement then.

Meanwhile, China’s strong rebound has reinforced its position as the Maldives’ biggest tourist market, coming on the back of their national carrier expanding its operations to the mainland.

Indian companies have had deep roots with aviation sector in Maldives. Recent updates indicate that the Hanimaadhoo International Airport redevelopment is being carried out by India's Kalpataru Projects International Limited (KPIL). This project is funded under a concessional line of credit from India's Exim Bank and includes the construction of a new 2.46‑km runway and a passenger terminal designed to handle 1.3 million passengers per annum.

The redevelopment—expected to be fully completed by March 2025—aims to ease pressure on Male’s facilities and boost connectivity to the northern atolls of the Maldives. Similarly, the expansion of Gan International Airport has been awarded to India's Renatus Projects Pvt Ltd. The contract, valued at approximately $29 million, covers major upgrades to the airport’s infrastructure. GMR however got into a high profile dispute with the local authorities over Male airport and eventually sold it back to them.