Tuesday, 13 January 2004  
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Lanka's Open Skies policy a joke, says Lionair Chief

by Chamitha Kuruppu

The biggest joke since the Wright brothers invented the aircraft in the one hundred year old aviation history is Sri Lanka's Open Skies policy, says Lionair Chairman Chandran Rutnam.

In an interview with the Daily News Rutnam shared his candid opinions about the Open Skies policy in Sri Lanka and how it could affect the aviation industry in the country.

Rutnam who had ambitious plans to commence international operations in the latter part of last year said that he has invested over Rs 200 million on his airline, but is still unable to charter the airline's future course as there is no proper aviation policy.

It is a matter for regret that no other airline in Sri Lanka apart from SriLankan Airline is permitted to operate flights to international destinations with the Emirates agreement the government entered into in 1995, says Rutnam.

"The Civil Aviation Department favours foreign carriers coming into the country but they do not facilitate 100% Sri Lankan owned companies flying to other destinations," he said.

Soon after Prime Minister Ranil Wickremesinghe assumed duties he said that he would make Sri Lanka as the aviation hub of Asia and stressed that the government will implement the 'Open Skies' policy.

During a visit to India mid last year Premier Wickremesinghe negotiated with Indian Prime Minister Atal Behari Vajpayee and the Indian Minister of Civil Aviation and concluded an 'Open skies' air services agreement between the two countries.

Following the agreement and considering numerous requests by domestic airlines the Civil Aivation Department gave the green light to operate scheduled flights to Indian destinations.

Lionair made a formal application to the Civil Aviation Department to commence operations to certain South Indian destinations, Rutnam said.

We were informed that we could commence scheduled flights to Indian destinations from April 1, 2004 other than the eight gateways which SriLankan airline is flying, he said.

"Although it is a great achievement to have 'Open Skies' it means nothing to us if we cannot fly to other destinations," Rutnam said.

Is it becasue the one sided and unfair MoU between the Sri Lankan government and Emirates still hold within the framework of the agreements between Premier Wickremesighe and Indian Prime Minister, Rutnam questioned.

It is high time for the government to re-negotiate and amend the existing MoU to allow fair and equal opportunities. Those MoUs were signed during a completely different climate in the world and in the country - the government was engaged in a terrible war and had no traffic, but things have now completely changed.

"We have given away the family jewels and are embarrassed about it. Therefore the authorities never tried to address the core issue. We have a nation and an industry to look after, the 'top people' should understand that," he said.

There are three local airlines including Lionair who look forward to commence international operations. This will boost the country's aviation industry as well and contribute heavily towards the economy.

My attacks are not personal, I am disappointed, says Rutnam. This is a heavy investment and high risk industry, we cannot survive by just flying to Jaffna, he added. "As a 100% local owned and operated company all I request is to have equal treatment.

Why clip our wings when the rest of the birds are flying all over the world," Rutnam said.

Lionair began operations in 1994 with two Antonov 24 fixed wing aircraft flying to eight destinations; Trincomalee, Sigiriya, Wirawila, Koggala, Ampara, Batticaloa and Anuradhapura. Lionair has carried more than 700,000 passengers to these destinations in over 19,000 flights.

In 1998 the government banned domestic flights due to security reasons. However, Lionair managed to survive in the industry till the ban was lifted in May 2002. At present with a British Aerospace Hawker Siddley 748 Lionair is operating two daily flights to Jaffna.

The Lionair group has an Aerospace Engineering College, which is affiliated to the Kingston University, UK. The college has over 200 students and over 80 students are sent annually to Kingston for graduation.

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