A new agreement between Emirates and the government to lift catering and ground-handling monopolies at the airport has come under fire, forcing officials to rethink concessions.
The state has been lobbying with the Dubai based airline and parent company of national carrier SriLankan Airlines, to renegotiate a ten year monopoly ending in 2008. rn
rnThe new agreement, which comes into effect from August 1, with Emirates was expected to open up skies to other designated carriers and allow for third parties in ground handling and catering.rn
rnObjectives, aviation officials say, have been effectively ruled out in a hastily negotiated Memorandum of Understanding. rn
rnDirectly affected will be airport revenue, causing losses of about Rs. 100 mn a year, say top officials of Airport and Aviation Services Ltd (AASL) endash current managers of the Bandaranaike International Airport. rn
rnldblquote We have been told that since SriLankan Airlines no longer has the monopoly, they will no longer be paying