Six suitors in the running for SriLankan Airlines

23 April 2024 12:12 am - 25 - {{hitsCtrl.values.hits}}

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Malaysia’s AirAsia and Sri Lanka’s privately-owned low-cost carrier FitsAir among bidders

The government’s search for a suitor for national carrier SriLankan Airlines has narrowed down with a total of six bidders showing interest in the debt-ridden entity.

The State-Owned Restructuring Unit (SOERU) yesterday shared that Requests for Qualification (RfQs) were received from AirAsia Consulting Sdn. Bhd., Dharshaan Elite Investment Holding (Pvt.) Ltd, FITS Aviation (Private) Limited, Sherisha Technologies Private Limited, Treasure Republic Guardians Limited and Hayleys PLC.

The RfQs will be evaluated as per the Special Guidelines on Divestiture of State-Owned Enterprises approved by the Cabinet of Ministers in July 2023. International Finance Corporation (IFC), as the transaction advisor for the divestiture of SriLankan Airlines Limited, will continue to advise the government of Sri Lanka.

On October 3, 2023, via international and local media, the government, acting through the Finance, Economic Stabilisation and National Policies Ministry, called for RfQs from potential investors for the acquisition of shares in SriLankan Airlines Limited. The deadline for submission of proposals ended at 2.00 p.m. yesterday (22). The RfQs received were considered by the Opening Committee appointed by the Special Cabinet-Appointed Negotiating Committee.

Last week, the SOERU said it expects all transactions, other than that of the national carrier, to be concluded by August 2024 but the timeline for SriLankan Airlines is likely to extend to end-September 2024.
In March, the government said it would take over US $ 510 million in debt from the balance sheet of state-run SriLankan Airlines.

The debt pile was reduced on the advice of the IFC, to make the airline more attractive for investing.

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Comments - 25

Sunil Tuesday, 23 April 2024 07:02 AM

Surprising no major international state owned airline has bid despite tourism potential of the country. :Once bitten twice shy" is what Emirates have learned from Sri Lankan. Singapore Airlines who provided management support to start Air Lanka in 1979 must be knowing the political cronies culture and not wanting to bid. Finally, Public of Sri Lanka loses due to political interference in the Airline.

Prianka Nalin Seneviratne Tuesday, 23 April 2024 07:30 AM

Really? Only Air Asia is the only known airline interested in the business? Probably the requirements are aimed at not attracting the big players that will play big money.

Need Impartial CID to Investigate Tuesday, 23 April 2024 08:28 AM

US$510/- million and NOT LKR 510/- million in debts this regime will need to settle. See how this regime is covering up the abuse over the years by various politicians. Obviously taxpayers plus another few more international loans need to be undertaken to pay us this mega debt. By right should be collected from the all previous Presidents since they were holding Executive powers and had the option to close up the airline. However, most of them and their cronies abused it and used it as their “UBER” plane to globe trot. CID must investigate this mega fraud.

jude Tuesday, 23 April 2024 08:33 AM

Give it to FITS. They are a local company already running an airline.

Jude Tuesday, 23 April 2024 08:55 AM

Sell damn planes, government should get out of AIRLINE business.

Ganesh Tuesday, 23 April 2024 01:13 PM

And your house to pay air tickets of foreign operators.

Jude Tuesday, 23 April 2024 08:56 AM

Some lucky SOB'S will get the airline for a song!! Yeah.

Kanna Tuesday, 23 April 2024 09:06 AM

Some people from top to middle are going to be rich

Tissa Fernando Tuesday, 23 April 2024 09:30 AM

Looks like no other airline is interested in running this airline.

Sokrates Tuesday, 23 April 2024 09:45 AM

It looks like AirAsia is the only company with extensive experience in the aviation sector. The owner TATA Group owns several successful airlines. The other companies will exploit SriLankan. They will sell everything of value and sell the valuable landing slots to the highest bidder. However, it can be assumed that AirAsia will not pay bribes.

TATA IS A REPUTABLE COMPANY KNOWN WORLD WIDE. Tuesday, 23 April 2024 04:32 PM

Absolutely correct, I agree with you.

Tissa Fernando Wednesday, 24 April 2024 12:32 AM

I would prefer Haleys as they have a very good management team and they turn around dead companies. They are local too.

Harsha Wijewardene Tuesday, 23 April 2024 10:01 AM

Corrupt chairman and corrupt minister are destroying the airline.

Kabir Hashim Tuesday, 23 April 2024 10:02 AM

Worst airline ever. Full of political cronies mostly lazy and rude.

Rishan Tuesday, 23 April 2024 10:07 AM

How about Qatar Airways, Emirates or Singapore Airlines. Better give to a reputed airline rather than giving to budget airlines ......

Budget Airlines Are Cost Conscious Tuesday, 23 April 2024 10:54 AM

Ideally a reputable airline to take over. However Air Asia has proven its metal over the years even during the pandemic. They will definitely run the airline without much fanfare and streamline its operations which the SL political circle might have an issue when using it for their globe trotting.

Veggie Tuesday, 23 April 2024 10:42 AM

How many suitor's running for dame Sri Lanka?

Bandu Tuesday, 23 April 2024 11:54 AM

GOverments in the last 20 years has run the airline to the ground. SL government is too corrupt to run an airline or a business. Sell it, save tax payers money from having to fund losses.

airline industry Tuesday, 23 April 2024 01:18 PM

If an airline llike the Government owned Sri Lankan Airlines cannot afford to purchase its'own planes despite more than 40 years of service in the airline industry and have to lease second hand aircraft from other sources it is time to say goodbye to the airline iindustry and save some monry and lives.

NV Jen Tuesday, 23 April 2024 03:08 PM

All major and reputed airlines know that Sri Lankan governments cannot be trusted, after Mahinda's moronic bulldozing of Emirates Our politicians lack integrity and that is costing the country a lot.

Navi Tuesday, 23 April 2024 07:34 PM

This is the reason, they ran down the Airline to the verge of non existence. Handover the USD 510m debt too with the sale. Wonder, whether the buyer will buy out the Chairman and the staff as well??? If they can make an offer GOSL can add a value added incentive to include in the package Nimal Sorrypala de Silva as well.

pantha kumaran Tuesday, 23 April 2024 07:36 PM

It is good for the Government to liquidate this airline. Allow more foreign airlines to fly in and out of the country. In other words sell the routes for money. Emirates, Qatar, Ethiad can take West and Singapore airlines, Thai and Malaysian can take the East.

Add More Budget Flights Wednesday, 24 April 2024 07:20 AM

Correct and add more budget flights for flexibility too. Cost of these airfare are rising if purchased nearer to date of travel. Most travellers will spend less on flights as it’s just for a few hours but more in the country they are visiting like on sightseeing and food / beverages.

Shera Wednesday, 24 April 2024 03:06 AM

Give it to Hayleys. They have had a consistently profitable presence in Sri Lanka for generations.

Danny Wednesday, 24 April 2024 04:23 AM

As long as Rajapakses in the government, no reputable organization bid. I guess, our High Commissioner in Kenya and Uganda with a jet may bid.

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Six suitors in the running for SriLankan Airlines

Comments - 25

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