SriLankan Airlines: next plan to take wings after Presidential Election

13 August 2024 08:02 am Views - {{hitsCtrl.values.hits}} 10 Bookmark

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Colombo, August 13 (Daily Mirror) - The government has put off its plans to find an alternate strategy to develop the cash strapped national career ‘SriLankan Airlines’ till the Presidential Election is over, an official said.

Earlier, the Cabinet terminated the process of divesting it and decided to look for different models to develop it.

The government “will now follow an alternate strategy, to be decided on shortly, to divest the airline based on a framework approved by the Cabinet of Ministers,” a statement from the State Enterprises Restructuring Unit said earlier.

However, the government has now decided shelve the whole plan until, the Presidential Election is over.

The government decided against selling a minority stake of 49 per cent of its national carrier, SriLankan Airlines, after none of the bidding entities that expressed interest in it was deemed “worthy.” Instead, the airline will undergo restructuring, Minister of Ports, Shipping and Aviation Nimal Siripala de Silva said in a statement earlier. Details about the restructuring agenda have yet to be revealed.

The government had received bids from six firms for the stake sale.

Comments - 10

Suhada malli Tuesday, 13 August 2024 09:18 AM

Apply the 80 - 20 rule and let go of the 80% that only contributes 20% for the airlines sustainability and profitability. Have some good cost and management specialized accountants in the board together with airline domain experts in the restructuring committee. They will come with a solution.

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Jude Tuesday, 13 August 2024 09:24 AM

Government is milking a dead cow.

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Wiraj Tuesday, 13 August 2024 01:56 PM

Or rather the dead cow is drinking milk from the government!

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Mark Anandappa Tuesday, 13 August 2024 09:34 AM

The Investors do not have any confidence in the GOVT as well as the Minister - who was famous in soliciting a bribe for Japan.

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Keerthi Dissanayake Tuesday, 13 August 2024 10:20 AM

I proposed a new model of operation for SriLankan Airlines, with a foreign Investor who was willing for Direct Investment up to USD 2-3 Billion, covering both SriLankan Airlines in particular and Mattala Airport in general. But unfortunately it was not considered for reasons I do not know. What more can anyone expect for a debt ridden national carrier, which was draining and continue to drain public money at the expense of poor tax paying citizens of Sri Lanka.

1 31

Global Investments Wednesday, 14 August 2024 08:26 AM

You had that with Emirates and LotusAir. What happened there?

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Rashmi Tuesday, 13 August 2024 10:37 AM

I think at this point, closing down SLAS will be more beneficial than operating it with mountain of losses

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Reformist Tuesday, 13 August 2024 02:14 PM

Look who is talking. When anyone sees sleeping Siripala as the Minister who is a bribe seeker, can any sensible investor in his right mind come here? These people should be chased away for good and note he has always been Minister every time. What a stupid country to expell a very professional previous CEO. Wherever you look, this country has nothing to look forward to.

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Smh Tuesday, 13 August 2024 03:41 PM

Not that the investors were "unworthy" but smart investors don't think it is worth their while.

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Mandayan Tuesday, 13 August 2024 07:54 PM

Yes, after the presidential election, new President Namal will sort it out with his uncle, brother in law of Mahinda, the expert in the airline industry to sort the airline out, so let’s vote for baby

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