Malaysia’s AirAsia wants to set up budget carrier here
By Namini Wijedasa
Malaysian low-cost airline AirAsia has made a strong pitch to set up a budget carrier in Colombo with a 51 percent stake for the Sri Lanka Government. But Public Enterprise Development Minister Kabir Hashim, in charge of SriLankan Airlines, claimed he was completely bypassed.
A team from AirAsia made an hour-long presentation to the Cabinet Committee on Economic Management (CCEM) on Wednesday. While Minister Hashim is a member of the group, he said he had neither been informed such a pitch would be made nor sent any background information. It had, however, been included in the agenda. He did not attend the meeting.
“I am not opposing it but I am concerned,” he told the Sunday Times. “Proposals of this nature have to be carefully evaluated to determine the viability and ramifications on the bleeding national carrier.”
The CCEM meeting was headed by Prime Minister Ranil Wickremesinghe. Among the team that made the presentation was Dilhan Haradasa, who is AirAsia’s Group Head of Network and Regulatory Affairs. An attendee called the pitch “impressive”. The Malaysian carrier pledged substantial returns at no cost to the Sri Lankan Government.
“Every button was pushed,” he said, on condition of anonymity. “Everything will be privately funded. They will bring in five aircraft in the first year, and twenty five in five years. There will be two in Jaffna and two in Mattala. They said they will bring in tourists to meet the Government’s five million target and they showed glowing statistics of other places they operate in. Each tourist they flew in now had a daily spend of US$ 160. They promised to raise it to US$ 200 in two years.”
More
http://www.sundaytimes.lk/171112/ne...nts-to-set-up-budget-carrier-here-268247.html
By Namini Wijedasa
Malaysian low-cost airline AirAsia has made a strong pitch to set up a budget carrier in Colombo with a 51 percent stake for the Sri Lanka Government. But Public Enterprise Development Minister Kabir Hashim, in charge of SriLankan Airlines, claimed he was completely bypassed.
A team from AirAsia made an hour-long presentation to the Cabinet Committee on Economic Management (CCEM) on Wednesday. While Minister Hashim is a member of the group, he said he had neither been informed such a pitch would be made nor sent any background information. It had, however, been included in the agenda. He did not attend the meeting.
“I am not opposing it but I am concerned,” he told the Sunday Times. “Proposals of this nature have to be carefully evaluated to determine the viability and ramifications on the bleeding national carrier.”
The CCEM meeting was headed by Prime Minister Ranil Wickremesinghe. Among the team that made the presentation was Dilhan Haradasa, who is AirAsia’s Group Head of Network and Regulatory Affairs. An attendee called the pitch “impressive”. The Malaysian carrier pledged substantial returns at no cost to the Sri Lankan Government.
“Every button was pushed,” he said, on condition of anonymity. “Everything will be privately funded. They will bring in five aircraft in the first year, and twenty five in five years. There will be two in Jaffna and two in Mattala. They said they will bring in tourists to meet the Government’s five million target and they showed glowing statistics of other places they operate in. Each tourist they flew in now had a daily spend of US$ 160. They promised to raise it to US$ 200 in two years.”
More
http://www.sundaytimes.lk/171112/ne...nts-to-set-up-budget-carrier-here-268247.html
