Wed, 08 September 2010  14:53:26
More Money 7 Comment(s)
11 Sep, 2008 19:17:47
By Ishara M Gamage
Sri Lanka state budget airline asks for more cash
Sept 11, 2008 (LBO) - Sri Lanka's troubled state-run budget carrier Mihin Air is to ask for another three billion rupees in peoples' money in the next budget to revive operations, an official said.
The airline is now without aircraft after having lost its start-up capital and also money borrowed from state-run Bank of Ceylon, and was said to be in the red by more than two billion rupees.

Tenders to lease two aircraft would close on September 16. They are hoping to get an aircraft on wet lease (with crew and maintenance) for three months and a dry leased aircraft for a longer term.

With no source of revenue, the firm is paying salaries with difficulty and out 200 workers about 40 have already left the airline the official said.

Raja Edirisuriya, a former chairman of the State Engineering Corporation has been appointed to the post of chairman of Mihin.

Sri Lanka has had unhappy experiences with state-owned airlines.

The island's first national carrier Air Ceylon ran aground. Air Lanka which was started in the late 1970s was mired in procurement scandals, losses and was a burden on the people for years until management control was given to Emirates Airlines.

Emirates terminated its management contract in March 2008, after unhappy relations with the government.

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READER COMMENT(S)
7. M Sep 13
Don't look at the negative points and think Sri Lanks can't do any thing. If you look around the globe you'll find so many talented Sri Lankans at many challanging top positions.

Why can't the government get such a set of people and give them a target & performance related benifit scheme.

There is a large market of air travel towards sri lanka both from large number of Sri Lankas in GCC, Italy & Japan in additon to south Indians in same places. If Mihin can tap & manage this oppertunity with perfomance that would be more than enough to make good money.

There are plenty of air lines who have severe difficulties but uses their strenghts & oppertunities to generate profits. Don't think Sri Lanka can't do any thing. It may be true in the past...

6. Another victim of Sri Lankan A Sep 13
The very purpose of having a budget air line is missing. Why can't the government give the money wasted on the needy.

In fact, Sri Lankan Air lines is offering free tickets to Arab kids who can afford to buy tickets and charging Sri Lankans almost double the air fare charged by Saudi Arabian Air Lines from Colombo to Riyadh. Thus, how do you achieve Mahinda Chinthanaya?

5. Daeshabandu Sep 13
Can Mihin air compete with emerging Indian budget airlines? It was unwise suggestion to have had Mihin. Don't burden the poor.
4. Nathan Sep 13
This is another instance of the nation's wealth being squandered for prestige and to provide jobs for relatives and henchmen.
This will be more money down the drain.
3. Rohan Samarajiva Sep 12
Exactly. Why not just run down one state-owned airline? Why run down two at the same time?
2. Vinod Sep 12
Air Ceylon did not run aground. Its closure was one of JR Jayawardene's idiosyncratic actions.
1. Jack Pointq Sep 12
Now that the Government controls Sri Lankan Airlines is it necessary to have another state owned airline? Perhaps its needed for "competition" like the SLIC and NIC or the JEDB and SPC?