Blackstone Group, the world’s largest private equity firm, is on the verge of reacquiring Trans Maldivian Airways (TMA), the globe’s leading seaplane operator, for approximately $500 million. This move comes eight years after Blackstone sold TMA to a consortium led by Bain Capital and Shenzhen Tempus Global Business Services Holdings Ltd.
Established in 1989, TMA operates a fleet of 65 De Havilland Twin Otter seaplanes, connecting over 80 resorts across 16 atolls in the Maldives. The airline conducts more than 400 flights daily, playing a pivotal role in the nation’s tourism sector.
In 2013, Blackstone acquired TMA and later sold it in 2017 for $500 million, realizing a 4.8-fold return on its $98 million investment. The Bain-led consortium aimed to capitalize on the Maldives’ booming high-end tourism market.
However, the COVID-19 pandemic severely impacted global travel, leading to a sharp decline in TMA’s operations. The company defaulted on a $305 million loan, prompting lenders, including Carlyle Group, King Street Capital Management, and Davidson Kempner Capital Management, to assume control and restructure the debt.
With tourism rebounding, TMA’s financial performance has improved. The airline reportedly generated $177.9 million in revenue in 2024, with industry experts forecasting a profit of $70-80 million for the current year.
Despite this recovery, potential buyers like Apollo Global Management, CVC Capital Partners, and Tata Group have expressed concerns about sector vulnerabilities post-pandemic and have refrained from investing. Consequently, the lender consortium has turned to Blackstone, which is now finalizing the repurchase at a valuation similar to its 2017 sale price.
This reacquisition underscores Blackstone’s confidence in the Maldivian tourism industry’s resilience and TMA’s strategic significance within it.
