23 October 2016 03:11 pm
The full statement:
It was decided to discontinue the services of Mihin Lanka, with effect from 30th October 2016. This decision has been made by the Government of Sri Lanka, as part of its long-term strategy to restructure the local aviation industry and strengthen the national carrier’s offering and efficiency.
Mihin Lanka had been making a net loss since its inception in 2007. Projections for the current financial year ending 31st March 2017 were also declared as a net loss. All routes in Mihin Lanka’s route network will now be serviced by SriLankan Airlines thus marking a new beginning for the national carrier and building a strong, efficient and competitive airline that will be a force to be reckoned with in the region.
In regards to concerns about employment, the management of SriLankan Airlines has advised that due to the business operations of Mihin Lanka coming to an end on 31st December 2016, the airline envisaged that several staff members would be made redundant. Foreseeing this development ahead of time, the airline made elaborate plans for the redeployment of Mihin Lanka staff. So far recruitment processes have been completed for a total of 130 (out of a total of 304) employees of Mihin Lanka.
This recruitment and redeployment process is expected to continue until Mihin Lanka’s closure in December and all staff members who do not have the opportunity to join the national carrier, will be given a service severance package in alignment with specified government guidelines.
This media briefing came in the light of many open dialogues between the airline’s staff and management which took place at Mihin Lanka’s head office recently. The meetings were held to discuss employee concerns regarding their employment, compensation and the airline’s amalgamation with the national carrier, which is currently underway. Mihin Lanka would like to reiterate that the meetings were conducted in a cordial and professional manner, without hostility and with the full cooperation of all parties involved.
The management team spent a great deal of time addressing each staff member’s concerns and explained that SriLankan Airlines had already incorporated several members of Mihin Lanka’s workforce cadre into its employee network. The management of the airline also reassured staff members that as many Mihin Lanka staff as possible will be absorbed. Accordingly details of the compensation package have been shared with all members of staff at Mhin Lanka.