SriLankan, Mihin lose Rs. 16bn in first half

25 November 2013 04:28 am - 5 - {{hitsCtrl.values.hits}}

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The two state-owned airlines, which share the same Chairman and CEO has reported an operating loss over Rs.16.4 billion during the first half of the financial year 2013/14 despite an increase in the passenger load factor, a Finance Ministry report showed.

SriLankan Airlines, the national career has a reported an operating loss of Rs.15.8 billion during the first half ended September, 2013 whereas the budget career has reported Rs.675 million operating loss in the same period.

SriLankan and Mihin reported operating losses of Rs.29.9 billion and Rs.2.8 billion respectively, for the financial year 2012/2013.

SriLankan is estimated report an operating loss of Rs.26.6 billion at the end of the financial year 2013/14 while Mihin’s operating loss is estimated at Rs.1.4 billion.

According to the Finance Ministry report, SriLankan recorded revenue of Rs.54.4 billion during the first half, 5 percent down over the budget revenue and 7 percent down compared to the same period of 2012/13.

The outstanding debt to banks by SriLankan in the first half stood at Rs.15.7 billion whereas the amount stood at Rs.27.6 billion at the end of 2012/13.

The report also said during the first half, SriLankan settled outstanding fuel bills amounting to Rs.24.2 billion to Ceylon Petroleum Corporation by transferring Treasury bonds worth of US $ 225 million.

“SriLankan’s liabilities to overseas in respect of aviation fuel, lease rental, ground handling and loan servicing for next six months stands at Rs.43 billion,” the report noted.

The total capital infusion since 2012 has amounted to US $ 234 million.

The government in its 2014 budget proposed to provide US $ 150 million for SriLankan and US $ 50 million for Mihin.

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Comments - 5

SURA PAPPA Tuesday, 26 November 2013 06:45 AM

Wow, A Very Good News.... How Stupid Are they Run This Airline?? Is This Airlines Still Exists?? Where All the Money Going?? Every Month They Loose Billions... Why People Are So Stupid?? Fight Against this, This is OUR Money, Where all this MONEY Going to,, Why Don't they Sell Share to one World Renown Air Line, WHY the hell they cxld with Emirates.. All Because of Stupid President and His EGO... We Don't need a Mihin Air.. GOD PLS SEND A HUGE BIG THUNDER BALL TO RULING FAMILY, AND EVEN THEIR ASHES SHOULD NOT BE IN SRI LANKA.....

Roy Tuesday, 26 November 2013 12:28 PM

Mr SURA PAPPA,

1>If you take away the cost MR and his family travel including GL peris travel expenses. the airline should run at a profit
2>If you sell shares to foreign companies they will ask questions about item 1.
3>If you sell shares to foreign companies MR wont be able make (10% now changed to 25% - kick back)money on new air craft purchase.
4.Don't worry, we know where they are keeping the money and we will take each and every penny from MR brothers.

MOTHER LANKA airline is the hands of dogs.

True Srilankan Tuesday, 26 November 2013 08:28 PM

Go on and loose and we tax payers will bail you out all the time. What a country.

Spitfire Tuesday, 26 November 2013 08:39 AM

You have a simple answer to your literary explosion, That is "MEGALOMANIA"!!!!!!!!

Suresh Tuesday, 26 November 2013 02:14 PM

Chairman and CEO should get sacked..... Bloody Idiots Or someone must be pocketing this money.

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SriLankan, Mihin lose Rs. 16bn in first half

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