COLOMBO: The Government is planning to hand over SriLankan airlines back to its Emirates management after a piecemeal adjustment of the agreement, despite wide ranging allegations that the agreement is not in favour of the government which still holds 60 percent ownership of the national carrier.The ten-year lease which granted the management of SriLankan airlines to the Dubai-based Emirates Airline will expire in March next year. Many fears have been raised as to whether Sri Lankan will face the same fate as that of Prima which was sold back to Prima Company for a mere US$67 million in 2001 by former President Chandrika Bandaranaike Kumaratunga.
Meanwhile, JVP MP, Vijitha Herat questioned Chief Government Whip, Jeyeraj Fernandopulle recently in Parliament whether the Government will extend the agreement with Emirates. Fernandopulle’s response was noncommittal, but he agreed that there were lapses in the agreement.
The Cabinet has appointed a Committee recently to study the agreement with a view to handing over the management of Sri Lankan back to Emirates with minor adjustments to the Agree-ment.
Vijitha Herat alleged that certain influential persons whom he did not wish to name were pushing for the renewal of the management agreement with the Emirates.
Meanwhile, SriLankan has lost some major destinations like Heathrow-Colombo due to the agreement with Emirates, which now flies to that destination.
In addition, SriLankan purchases all catering items from Dubai at a disproportionately higher price. For instance, SriLankan buys a bottle of water from Dubai for Rs 300 when it is priced at Rs 35 in Sri Lanka. An aviation expert commented that though Air Lanka was privatised, no significant development had taken place in the fleet of the airline.
Indeed, the majority of aircraft have been obtained on a lease basis, an airline expert said. If the lease payments made on an aircraft are calculated Sri Lankan could have easily purchased at least two aircraft with the money spent on the leasing, he said.
Lakbima News |
Meanwhile, JVP MP, Vijitha Herat questioned Chief Government Whip, Jeyeraj Fernandopulle recently in Parliament whether the Government will extend the agreement with Emirates. Fernandopulle’s response was noncommittal, but he agreed that there were lapses in the agreement.
The Cabinet has appointed a Committee recently to study the agreement with a view to handing over the management of Sri Lankan back to Emirates with minor adjustments to the Agree-ment.
Vijitha Herat alleged that certain influential persons whom he did not wish to name were pushing for the renewal of the management agreement with the Emirates.
Meanwhile, SriLankan has lost some major destinations like Heathrow-Colombo due to the agreement with Emirates, which now flies to that destination.
In addition, SriLankan purchases all catering items from Dubai at a disproportionately higher price. For instance, SriLankan buys a bottle of water from Dubai for Rs 300 when it is priced at Rs 35 in Sri Lanka. An aviation expert commented that though Air Lanka was privatised, no significant development had taken place in the fleet of the airline.
Indeed, the majority of aircraft have been obtained on a lease basis, an airline expert said. If the lease payments made on an aircraft are calculated Sri Lankan could have easily purchased at least two aircraft with the money spent on the leasing, he said.
Lakbima News |
