TMA pilots plan flight suspension over salary currency dispute

Trans Maldivian Airways (TMA) pilots have announced plans to suspend flight operations starting July 26, in protest against the company’s recent decision to pay part of employee salaries in Maldivian Rufiyaa (MVR) rather than US dollars.

According to a pilot who spoke to Mihaaru News, the airline’s management has already been informed of the planned work suspension. Pilots are demanding that 100 percent of staff salaries continue to be paid in US dollars, as has been the norm at the company, the world’s largest seaplane operator.

The standoff comes after TMA informed employees last month that beginning in July, 20 percent of their monthly salaries would be paid in Rufiyaa. The remaining 80 percent would continue to be paid in dollars.

While discussions have been ongoing internally, the pilots have also sought government intervention in resolving the matter. However, efforts to secure a meeting with relevant authorities have been unsuccessful.

TMA’s decision is tied to a broader issue facing tourism business companies in Maldives having to deposit dollar earnings in local banks. In an effort to ease the impact of this requirement, TMA proposed paying certain operating expenses such as jet fuel and service fees in Rufiyaa.

However, Maldives Airports Company Limited (MACL), which manages Velana International Airport, declined the proposal.

As a workaround, TMA opted to redirect Rufiyaa-denominated payments into partial salary disbursements. The company has not yet begun depositing US dollars in accordance with the Foreign Exchange Act.

Under the revised Act, in effect since January, Category A companies are required to deposit either USD 500 per tourist or 20 percent of their gross monthly income. Category B companies must deposit USD 25 per tourist or 20 percent of monthly income.

TMA has over 200 pilots employed. Junior captains at the company reportedly earn around USD 6,000 per month, while senior captains can earn up to USD 12,000.