If the Maldives ratifies the Cape Town Convention on International Interests in Mobile Equipment and the Aircraft Equipment Protocol 2001, it is likely to have a direct and positive effect on airlines, passengers and the Maldives economy as a whole. For example, if borrowing costs reduce, this would pave the way for the acquisition of new modern aircraft with less fuel consumption – ultimately enabling airlines to pass on the benefits to passengers in the form of reduced travel costs.
Since Maldivian law contains no compulsory terms and conditions for domestic air carriage, air carriers are free to determine the conditions of carriage. As long as such terms do not violate any other Maldivian laws, they are valid and binding between passengers and consignees. Therefore, it is essential for passengers and consignees to understand the conditions of carriage and their rights in case of an accident, damage or loss of passengers or cargo.
The Constitution provides that any international treaty to which the Maldives becomes a party will be enforced only on Parliament's approval and in accordance with any conditions of such approval. Among others, the Maldives has ratified the Convention on International Civil Aviation and the Convention on the International Recognition of Rights in Aircraft. Further, there have been talks about implementing legislation to govern the rights of domestic air passengers.