Mihin Air to lease French aircraft?

Hiran H. SENEWIRATNE

Mihin Air is now negotiating with all their debtors to resettle outstanding bills, which run into Rs 3 billion since it was launched in 2007 and the airline intends to resume flights from December 15, Chairman Raja Edirisuriya said.

He said the unpaid debt runs into Rs 3 billion.

They are now in the process of discussing with the Bank of Ceylon to settle Rs 1.2 billion, Ceylon Petroleum Corporation Rs 665 million and for Sri Lankan Airlines interline charges of Rs 500 million to have a repaid arrangement plan.

Edirisuriya said issues on unpaid debt specially due to the over flying fees to India and Oman amount to US$ 675 million and as a social responsibility they are planning to repay all urgent debt shortly.

He said the Treasury has allocated Rs 6 billion to resume Mihin Airlines this year and they hope to lease out a Boeing B737-800 flight from France for them to resume operations from December 15.

They have to sign a letter of agreement and deposit US$ 100,000 before Friday, he said. The Cabinet has appointed a Tender Committee to arrange the tender with an agent to organise a wet lease to lease out the flight and to have agreements with a Lessor from France to deliver the flight. The agreement includes the flight, maintenance, pilots and insurance converges, he said’.

The Ministry of Civil Aviation has given the green light to go ahead with the proposed plan and expects to release deposit money to get the aircraft to the country.

Once they re-launch the flight, they expect to have daily flights to Dubai and cities like Trivandrum and Trichy in India. Edirisuriya said that once they have a strategic business plan, they hope to add another flight.

“We want to fly 300 to 350 flying hours for a month. Therefore will keep the aircraft 13 hours in the air to create an efficient air line in the region,” the Chairman said.

He said the Rs 6 billion will be used to settle urgent debt and capital improvements of the carrier without being a burden to the Treasury in the future.

He also said they are planning to become a feeder for Sri Lankan Airlines and will work with the national carrier to make the entity more viable and efficient in the future.

Currently they have a workforce of 170 employees, and has three salary scales like managers, executives and graded staff.