Manta Air says open to 100% dollar salaries again if conditions permit

Manta Air clarified on Tuesday that it was compelled by a legal change to alter its salary policy, with 50% of employees’ salaries now be paid in Maldivian Rufiyaa and the remaining 50% in US dollars.

The airline previously paid all salaries fully in US dollars.

According to a press statement issued by the airline on Tuesday, the decision was made in response to regulatory requirements under the current foreign exchange law, which mandates that 20% of revenue must be converted into Maldivian Rufiyaa through a bank in the Maldives.

Manta Air stated that the revised salary structure was implemented following internal research and consultation with the Maldives Monetary Authority (MMA). The airline cited operational constraints, including obligations to pay suppliers in dollars, as a key factor in the decision. These suppliers include vendors for spare parts, software, aircraft, insurance, as well as fuel and airport service providers such as Maldives Airports Company Limited (MACL) and Island Aviation Services.

The airline noted that the salary revision was not voluntary but driven by the inability to maintain previous payment arrangements under the new financial environment. Manta added that it is engaged in discussions with the central bank and other government agencies, and it remains open to reverting to 100% dollar payments if circumstances allow.

The announcement comes amid reports of possible strike action by Manta employees. In response, the airline stated that the change was made in compliance with law and guided by the need to sustain operations. It also reiterated that employee welfare remains a priority.

Meanwhile, Trans Maldivian Airways (TMA) had recently made a similar decision to partially pay staff in Maldivian Rufiyaa. However, the airline reversed the move following threats of industrial action.

Manta Air raised questions over the consistency of enforcement of legal and regulatory standards, expressing concern that preferential treatment of some operators may affect fairness in the competitive aviation sector.