SriLankan gets new management from April 1

HIRAN H. SENEWIRATNE

The country’s national carrier SriLankan Airlines will come under Government management following the expiration of the agreement with Emirates, after March 31, Treasury Secretary, Dr. P. B. Jayasundera said.

“We would not merge with Mihin Air but look for a possible joint venture if it fits with SriLankan requirements,” he said.

Dr. Jayasundera said Emirates still holds 44.6 per cent shares of SriLankan Airlines and it is up to them to decide on their share holding which they have not informed so far.

“Still SriLankan Airlines is managed mainly by SriLankans and with the change of the Emirates agreement there would not be any change immediately. We have the capacity to manage the entity, he said.

Dr. Jayasundera said they would build the capacity and other capabilities to manage SriLankan Airlines with the exit of the Emirates management from April 1.

However, in pursuant to a letter received by the Government of Sri Lanka from Emirates, stating that they will not continue with the Management Agreement of SriLankan Airlines from April 1, 2008, the Government of Sri Lanka has decided that it will take the total control of the National Carrier’s Management from this date and will continue to manage The National Carrier for the best interest of the Public and the country.

The Government will remain the major shareholder of the Airline and will not divest or sell its shares to any other Partner/Carrier.

Chairman Board of Investment (BoI) Dhammika Perera indicated that the Government has now decided to takeover the total management of the airline from March 31.

A representative from Emirates would still remain as a member of the Board of the new management.

Emirates took over the management of SriLankan Airlines in 1998 with a 42 per cent stake with an investment of US $ 80 million. Emirates later purchased more shares from the public and increased their share to 43.6 per cent.

Emirates President, Tim Clark has indicated that they are keen in selling part or all of the shares. He valued the present Emirates’ stake in SriLankan Airlines for US$ 150 million.

SriLankan Airlines was re-branded in July 1999, after privatisation and a strategic partnership with Emirates saw massive restructuring and revitalising plans come into action.

Over the years since then, considerable time and effort has been invested into taking the Airline to its present world class ranking, winning several international aviation awards and a reputation for fine service, reliability and in-flight comfort, comparable with the best in the industry.