Budget airline Mihin Lanka to fly again
By Kelum Bandara
The cash-starved budget airline ‘Mihin Lanka’ which was to be re-launched today, has now scheduled its flight to Dubai for December 21 for the first time after being grounded in May.
The company which went bankrupt has spent nearly US $1 million to acquire the new aircraft for this purpose, and it was expected to be delivered to the country on December 19. The flight was expected to take off around 8 p.m. on December 21 after a religious ceremony organised by the company.
Budget airline
Mihin Lanka Chairman Raja Edirisuriya told Daily Mirror yesterday the flight would be operational from Colombo to Dubai for six times a week. Besides, the company would resume flight to Trichy and Trivendrum as well. Mr. Edirisuriya said the aircraft should be airborne at least for 12 hours a day if it was to make profits under ‘wet lease’ conditions.
Asked to comment on the company servicing its debt running to the tune of over Rs. 3 billion, he said talks were still going on with the Bank of Ceylon in this regard, to which Mihin Lanka owes Rs. 1.2 billion.
The bank has already insisted the airline should at least pay the interest of Rs. 187 million accrued on this loan. In addition, the Chairman said that he would meet the authorities of the Ceylon Petroleum Corporation today to discuss settling loans worth Rs. 685 million for fuel supplied to the company in the past.
“We should work out some arrangements with the CPC because we have to depend on it for fuel again. At the same time, we have already paid nearly US $1 million to Oman and India as outstanding overflying charges. Oman has already issued us clearance to fly over it after paying these charges. Yet, there was a delay on the part of India. We hope India would issue it this week at least,” he said.
In the meantime, the company has borrowed Rs. 500 million from the Civil Aviation Authority (CAA) through the Cabinet approval to cover up the initial costs.
“I asked for Rs. 1.1 million from the Treasury immediately. Now, Rs. 500 million have been borrowed from the CAA. I have to ask the Treasury for the remaining sum,” he said.
By Kelum Bandara
The cash-starved budget airline ‘Mihin Lanka’ which was to be re-launched today, has now scheduled its flight to Dubai for December 21 for the first time after being grounded in May.
The company which went bankrupt has spent nearly US $1 million to acquire the new aircraft for this purpose, and it was expected to be delivered to the country on December 19. The flight was expected to take off around 8 p.m. on December 21 after a religious ceremony organised by the company.
Budget airline
Mihin Lanka Chairman Raja Edirisuriya told Daily Mirror yesterday the flight would be operational from Colombo to Dubai for six times a week. Besides, the company would resume flight to Trichy and Trivendrum as well. Mr. Edirisuriya said the aircraft should be airborne at least for 12 hours a day if it was to make profits under ‘wet lease’ conditions.
Asked to comment on the company servicing its debt running to the tune of over Rs. 3 billion, he said talks were still going on with the Bank of Ceylon in this regard, to which Mihin Lanka owes Rs. 1.2 billion.
The bank has already insisted the airline should at least pay the interest of Rs. 187 million accrued on this loan. In addition, the Chairman said that he would meet the authorities of the Ceylon Petroleum Corporation today to discuss settling loans worth Rs. 685 million for fuel supplied to the company in the past.
“We should work out some arrangements with the CPC because we have to depend on it for fuel again. At the same time, we have already paid nearly US $1 million to Oman and India as outstanding overflying charges. Oman has already issued us clearance to fly over it after paying these charges. Yet, there was a delay on the part of India. We hope India would issue it this week at least,” he said.
In the meantime, the company has borrowed Rs. 500 million from the Civil Aviation Authority (CAA) through the Cabinet approval to cover up the initial costs.
“I asked for Rs. 1.1 million from the Treasury immediately. Now, Rs. 500 million have been borrowed from the CAA. I have to ask the Treasury for the remaining sum,” he said.
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