Sri Lankan airline deal with Emirates still in the air

NEW DELHI, Nov 27, 2007 (AFP) - SriLankan Airlines wants a new management contract to be signed soon with Dubai-owned Emirates, chief executive Peter Hill said Tuesday, forecasting a "tough" year for the island's carrier.
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The Colombo government is holding another meeting on January 8 with Emirates to discuss the renewal of the 10-year management contract of SriLankan Airlines that runs out next March, an airline official said.

"The negotiations between the government and Emirates have been going on for 18 months.

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I would have liked to have seen them resolved by now," Hill admitted to reporters in New Delhi.

The Sri Lankan national carrier, in which Emirates holds a 43.6 percent stake, needs a decision to push ahead with its business plans, he said.

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Hill was in the Indian capital to announce that SriLankan Airlines had become the first foreign carrier to operate 100 flights a week to India.

SriLankan Airlines, formerly known as Air Lanka, entered into the strategic partnership with Emirates in 1998 in which the Colombo government retained a majority stake, but gave full power to Emirates to run the airline.

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Media reports say the Sri Lankan government wants a bigger role in managing the carrrier and

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