Sri Lankan Airlines heads for a crash: UNP

   
 The UNP, yesterday in Parliament, charged that Sri Lankan Airline is heading for a crash suffering a loss of Rs.5700 million after it was taken over from the Emirates Company on April 1. UNP MP Ravi Karunanayake who moved an adjournment motion in this regard said that there was Rs.14 billion cash reserves when the company was handed over to the government by the Emirates.

MP Karunanayake said that most other national carriers in the world such as Singapore Airlines, Emirates and Thai Airways had recorded profits even exceeding their budgeted expectations, but ours had incurred heavy losses. He called for immediate action to resurrect the airline by posting competent persons to the management.

 “Our national carrier was cash rich but asset less when it was taken over from the Emirates,” he said. Citing an example for the inefficiency of the airline, he said that one London-bound airbus had taken off from the Colombo airport with an extra luggage without the passenger on board. After this was notified to the airline authorities, there had been an emergency landing at the Dubai airport. “In this instance, 35,000 gallons of air fuel had been discharged from the aircraft. The entire cost sustained in this case is Rs. 40 million. We have suffered such a big loss because of a mistake done here,” he said. Commenting on Mihin Lanka, he said that it had become a company only with liabilities today.

 “You have created a monster, and now you have to live with it,” he told the government, adding that Mihin Lanka owes Rs. 850 million to the Ceylon Petroleum Corporation for fuel supplied to it. He said that all these burdens had been transferred to the public and the Ministry of Civil Aviation had contributed to the soaring cost of living today in these circumstances. However, Construction and Engineering Services Minister Dr. Rajitha Senaratne said that the take over of Sri Lankan Airlines from Emirates was a historic task done by President Mahinda Rajapaksa. Dr. Senaratne said that the national carrier had suffered losses only on flights, yet it had achieved profits in ground handling, catering and through the duty free shops at the airport. “When leaving out the profit achieved in these sectors, the entire loss suffered during the last three months is only Rs.4665 million,” he said.

He said that the period between April and June is an off-peak season in the aviation industry, and therefore airlines generally incur losses during this time. “When our airline was handled by Emirates, we had recorded a loss of Rs. 2000 million last year during the said period,” he said. He said that 300-400 aircrafts had been kept out of operation today in the world due to the problems such as soaring fuel surcharges, and 15,000 airline employees had been removed in the United States alone. Ports and Aviation Minister Chamal Rajapaksa said that his Ministry had taken various measures for cost cutting and increasing efficiency. He said that Mihin Lanka would start operations in a month.