Tuesday Jan 15, 2008
Mihin Lanka, a wholly owned subsidiary of the Government, is likely to take over some of the Indian routes from SriLankan Airlines.

This move could be the result of the Sri Lankan Government's proposed buyout of Emirates Airlines stake in the national carrier, SriLankan Airlines and subsequent restructuring of the airline.

Speaking to TravelBiz Monitor of India, Sajin De Vass Gunawardena, CEO, Mihin Lanka, said "I will put forth a written proposal to place the two airlines under one umbrella, as it has been done with Indian and Air India in India. It will then be left to the Board of Directors of the two companies to work out the details."

According to him, these airlines would work as two independent companies but would rationalise their routes and in all likelihood, the Government would continue with the management of both airlines. Currently, the focus of the Sri Lankan Government is to have a smooth transition of the management.

Chances are that Mihin Lanka would take over the routes of the India subcontinent and SriLankan Airlines would look at the long haul international routes like Rome and Zurich, which it had closed after signing the agreement with Emirates ten years ago.

Tim Clark, President, Emirates Airlines had recently announced that the airline was considering selling its holding in SriLankan Airlines once its 10 year management contract with the latter ended on March 31, 2008.

The Sri Lankan government has announced that it will take over the management of SriLankan Airlines from April 1, 2008.

Chandana De Silva, Head of Corporate Communications, SriLankan Airlines, stated that India is their most important destination and they would continue to serve 100 flights per week to India.

De Silva also maintained that they would deploy majority of their aircraft on routes to the Indian subcontinent, though he refused to divulge the number of aircraft.