Sri Lanka’s Mihin budget airline director wages up amid losses

July 25, 2013 (LBO) – Sri Lanka’s state-run budget carrier Mihin Lanka had doubled rewards to director in “sitting fees” to 11.2 million while making losing around a billion rupees a year since 2008, a parliamentary report said. A report by the parliament’s bipartisan Committee on Public Enterprises (COPE) said Mihin Lanka had lost 1,300 million rupees in 2009, 1,221 million rupees in 2010 and 940 million rupees in 2011.

In the meantime its directors who were paid 5.4 million rupees in 2008 had been rewarded with 11.2 million rupees in 2011.

When questioned, a company official had replied that directors were paid “only a sitting fee,” the report said.

The airline had said fuel made up 43 percent of costs of Mihin Lanka and 60 percent of revenues.

An official had said that other airlines and revenues from airport related operations.

But analysts say most budget carriers in the world, which are owned by citizens and not the state, have no such privileges.

According to the International Air Transport Association, fuel made up only 30 percent
of an average airline’s costs in 2011.

COPE had told the airli