Mihin resurrected, inaugural flight on Dec 15
by Devan Daniel
Sri Lanka’s budget carrier, Mihin Lanka (Pvt) Ltd, resurrected from bankruptcy, will have its inaugural flight on 15th December, when a four month old Boeing 737-800 takes off for Dubai.
The new management of Mihin Lanka (Pvt) Ltd is saddled with a Rs. 3.1 billion debt which will be settled with the Rs. 6 billion allocated by the government in the 2009 budget.
"Under the previous management Mihin Lanka lost its fleet because it could not pay the leases, and the planes were too old as well.
"This time, we have acquired a new plane, just four months old, manufactured this year, on a wet-lease which will last for three months and converted to a dry lease thereafter," incumbent Chairman of Mihin Lanka, Raja A. Edirisuriya, told The Island.
He said the wet-lease will cost the budget airline between US$ 900 thousand and US$ 1 million a month inclusive of the pilot, maintenance and insurance which will be provided by a French company specializing in leasing aircrafts, Trans Avia France FAS.
After three months, when the lease is converted, Mihin Lanka will have to pay for insurance, maintenance and insurance.
The wet-lease will amount to US$ 2,800 per flying hour.
Edirisuriya said the details of the dry-lease are yet being discussed.
Officials of Trans Avia France FAS are in Sri Lanka to discuss details of the lease and the flight schedules.
Edirisuriya said the Boeing 737-800 will be delivered to Sri Lanka on 10th December, just five days before the re-launch of Mihin Lanka.
He said an advance of US$ 100,000 was already paid to the French leasing company.
Edirisuriya said he hoped to turn things around this time.
"There is no point in having an airline if it does not generate profits. I believe the pricing was wrong last time, so this time we will get that right and we will not be over staffed. We will also pick routes that will be profitable to the airline," he said.
Mihin Lanka has about 180 staff some of who are temporarily assigned to Sri Lankan Airlines and are eagerly awaiting the re-launch, a member of the staff told The Island.
Edirisuriya said Mihin Lanka will also commence flights to 5 other destinations in India and hopes to include Kuwait as well.
He said the airline hoped to acquire its second plane in three to four months time to be able to service these destinations.
Under its former Chairman, Sajin Vas Gunawardena, Mihin Lanka went bust and the new Chairman is saddled with a Rs. 3.1 billion debt burden.
Back then, the airline paid a hefty US$ 25,000 (about Rs. 2.7 million) on a monthly basis for its airline reservation system.
Edirisuriya said the new management decided to develop an in-house system for which the airline made an initial payment of Rs. 400,000 and will pay Indian company, Bird Information Systems, the developers of the airline inventory reservation system, Rs. 200,000 a month.
The budget airline’s call centre was launched yesterday at the BMICH and Edirisuriya said that Mihin Lanka will target the average Sri Lankan for which the call centre is expected to increase connectivity.
The Rs. 6 billion budget allocation has been criticized by many.
Analysts say the money could have been channeled to more important or critical areas, given the country’s turbulent macro economic environment and the global economic nose-dive.
"This is obviously somebody’s pet project," was a comment made by a participant at the post budget seminar of the National Chamber of Commerce of Sri Lanka.
The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) said it would appeal to the state to rethink its strategy with regard to Mihin Lanka.
Island.lk
by Devan Daniel
Sri Lanka’s budget carrier, Mihin Lanka (Pvt) Ltd, resurrected from bankruptcy, will have its inaugural flight on 15th December, when a four month old Boeing 737-800 takes off for Dubai.
The new management of Mihin Lanka (Pvt) Ltd is saddled with a Rs. 3.1 billion debt which will be settled with the Rs. 6 billion allocated by the government in the 2009 budget.
"Under the previous management Mihin Lanka lost its fleet because it could not pay the leases, and the planes were too old as well.
"This time, we have acquired a new plane, just four months old, manufactured this year, on a wet-lease which will last for three months and converted to a dry lease thereafter," incumbent Chairman of Mihin Lanka, Raja A. Edirisuriya, told The Island.
He said the wet-lease will cost the budget airline between US$ 900 thousand and US$ 1 million a month inclusive of the pilot, maintenance and insurance which will be provided by a French company specializing in leasing aircrafts, Trans Avia France FAS.
After three months, when the lease is converted, Mihin Lanka will have to pay for insurance, maintenance and insurance.
The wet-lease will amount to US$ 2,800 per flying hour.
Edirisuriya said the details of the dry-lease are yet being discussed.
Officials of Trans Avia France FAS are in Sri Lanka to discuss details of the lease and the flight schedules.
Edirisuriya said the Boeing 737-800 will be delivered to Sri Lanka on 10th December, just five days before the re-launch of Mihin Lanka.
He said an advance of US$ 100,000 was already paid to the French leasing company.
Edirisuriya said he hoped to turn things around this time.
"There is no point in having an airline if it does not generate profits. I believe the pricing was wrong last time, so this time we will get that right and we will not be over staffed. We will also pick routes that will be profitable to the airline," he said.
Mihin Lanka has about 180 staff some of who are temporarily assigned to Sri Lankan Airlines and are eagerly awaiting the re-launch, a member of the staff told The Island.
Edirisuriya said Mihin Lanka will also commence flights to 5 other destinations in India and hopes to include Kuwait as well.
He said the airline hoped to acquire its second plane in three to four months time to be able to service these destinations.
Under its former Chairman, Sajin Vas Gunawardena, Mihin Lanka went bust and the new Chairman is saddled with a Rs. 3.1 billion debt burden.
Back then, the airline paid a hefty US$ 25,000 (about Rs. 2.7 million) on a monthly basis for its airline reservation system.
Edirisuriya said the new management decided to develop an in-house system for which the airline made an initial payment of Rs. 400,000 and will pay Indian company, Bird Information Systems, the developers of the airline inventory reservation system, Rs. 200,000 a month.
The budget airline’s call centre was launched yesterday at the BMICH and Edirisuriya said that Mihin Lanka will target the average Sri Lankan for which the call centre is expected to increase connectivity.
The Rs. 6 billion budget allocation has been criticized by many.
Analysts say the money could have been channeled to more important or critical areas, given the country’s turbulent macro economic environment and the global economic nose-dive.
"This is obviously somebody’s pet project," was a comment made by a participant at the post budget seminar of the National Chamber of Commerce of Sri Lanka.
The Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) said it would appeal to the state to rethink its strategy with regard to Mihin Lanka.
Island.lk
R.I.P our money.. 
