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Turkey’s wealth fund in talks over urgent support for hard-hit Turkish Airlines – sources

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ISTANBUL (Reuters) – Turkey’s wealth fund is in talks to provide emergency funding to flag carrier Turkish Airlines THYAO.IS, one of the country’s hardest-hit companies when the coronavirus pandemic halted nearly all flights, four sources told Reuters.

The sources close to the matter said the company, which flies to more destinations worldwide than any other airline, could receive capital or financing support, though nothing had yet been finalised.

It was unclear how much funding the Turkey Wealth Fund (TVF) could make available in what one source called a “bailout”. TVF declined to comment.

In a statement to the stock exchange, Turkish Airlines said the company had not received any information regarding talks being conducted for the provision of capital or financing support to the company.

Measures restricting movement in the wake of the pandemic have led to big losses, layoffs and closures at airlines around the world. One of the biggest, Germany’s Lufthansa LHAG.DE, agreed a $10-billion government bailout in June.

Turkish Airlines posted a loss of 2.23 billion lira ($287 million) in the second quarter when lockdowns at home and abroad were most widespread. It has agreed with a labour union to cut wages by 30-50% until the end of 2021 but avoided layoffs.

“It is very clear that Turkish Airlines is in need of a bailout programme. This could be capital support or financing support,” one of the sources said.

The source added that TVF conducted a broader study of struggling Turkish companies in the transportation and tourism sectors, suggesting other bailouts could be forthcoming.

TVF owns 49.12% of Turkish Airlines, which has a market capitalisation of 14.6 billion lira ($1.9 billion). Its shares have dropped 31% since borders were temporarily closed and domestic and international flights were halted after February. They rose 2.5% after the funding news on Friday.

Chairman Ilker Ayci said after the second quarter the airline felt “very comfortable” with the $1.7 billion of cash on hand, credit lines and other funding capacity it had until the beginning of 2021.

But it expects to burn up to $350 million per month through year end, when net debt is expected to be some $14 billion.

Finance Minister Berat Albayrak, announcing the government’s three-year plan on Tuesday, said the recovery in some sectors including tourism and transportation had not reached desired levels.

Another source told Reuters efforts were being made for a similar style rescue for Turkish Airlines to Lufthansa.

“A sort of capital transfer or providing financing will be possible. Talks are now being held for this and the ideas for the method are being evaluated,” the source said.

The company’s passenger numbers tumbled 65.9% year-on-year in August, company data showed. Its load factor dropped 17.2 percentage points to 67.6% in the same period.

Reporting and photo: Reuters

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Maldives celebrates arrival of 2024’s 1 millionth tourist

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Maldives on Thursday welcomed the one millionth tourist to visit this year.

The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.

Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.

After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).

Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.

Maldives expects to reach 2 million tourists this year.

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New air route connects Chongqing to Maldives

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Chongqing Airlines on Monday began its inaugural flights to Maldives.

The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.

The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.

“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.

Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.

In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.

China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12. 

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CROSSROADS Maldives Introduces Weixin Pay at resorts for seamless guest experience

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CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.

Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.

The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.

SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.

Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.

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