Mihin Lanka flies into turbulance

[TamilNet, Saturday, 15 March 2008, 23:41 GMT]
Eleven months after beginning operations, Mihin Lanka, a low cost Air Lines fully owned and funded by the Government of Sri Lanka (GOSL), is facing a loss of Rs.300 million, and if the economic performance does not improve soon, the airline may face bankruptcy, airline industry observers in Colombo said.

The trouble-plagued air lines was launched 24 April, 2007 to provide low cost flights to Sri lankans employed in Middle East countries, to passengers travelling to India, and also to be used by the Sri Lanka's President and his delegation during official trips abroad.

The initial destinations were, however, limited to Dubai, Trichy, and Kochin.

Opposition politicians in Sri Lanka parliament alleged that $75 million needed to launch the air lines was drawn from government establishments.

Close relatives and associates of the Sri Lankan President, including his brother Gothapaya Rajapakse, Chief of Sri Lanka Air Force (SLAF) Rohan Goonetilake, and Secretary to the President Lalith Weeratunge were appointed to the board of Directors of the Air Lines.

Sajith Vas Goonewardene, secretary to the President with no aviation industry experience was named as Chairman and Chief Executive Director.

Detractors of the air line allege that the new airline was floated with funds obtained from Employees Thrift Savings Fund, and due to the anticipated loss of at least Rs.300 million, GOSL will likely not be able to pay back the funds, sources said.

Industry observers say that since begining operations, the airline had developed a reputation for poor service and delays, and the airline faces an uncertain future.

 

Latest 15 Reports
15.03.19 21:02   Photo
TNA hierarchy backs controversial Sinhala extremist project at Jaffna entrance
14.03.19 22:36  
STF commandos torture Tamil man in Batticaloa, victim held incommunicado
13.03.19 14:11   Photo
Tamil parties failing to single-mindedly demand genocide justice, more dangerous than ITAK
12.03.19 17:28   Photo
Colombo schemes Sinhala Buddhicisation of 40 more locations in Mullaiththeevu
11.03.19 17:33   Photo
118 Muslim families demand occupying SL Navy to release their lands in Mannaar
10.03.19 18:34   Photo
Colombo sabotaging mass grave investigations and Tamils learning lessons on ‘hybrid’ paradigm
09.03.19 17:11   Photo
Manipulations at work to nullify NPC-evolved identity to Eezham Tamils food court
08.03.19 20:24  
Occupying Colombo set to grab 227 acres of private lands in Vali North in Jaffna
07.03.19 21:10   Photo
Intelligence establishments poised to escalate religious fundamentalism in Mannaar
06.03.19 17:29   Photo
Sinhala ‘emperor’ monk wants Muslims expelled from Arisi-malai in Trincomalee
05.03.19 19:42   Photo
Tamils mark Shivaratri at base of hill seized by SL Archaeology Department in Trincomalee
04.03.19 14:18  
Ranil's ‘development’ of North-East is divide-and-rule imposed on Tamils
03.03.19 18:05   Photo
Protest continues beyond two years at Keappaa-pulavu in Mullaith-theevu
02.03.19 11:09   Photo
Desecration of Sivalingam by SL Archaeology Department sparks tension in Trincomalee
01.03.19 21:52  
Colombo wants to mark ancient villages in East as ‘Sinhala Buddhist’ villages
 
Find this article at:
http://www.tamilnet.com/art.html?catid=13&artid=24988