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Sri Lanka weighs Open Skies amidst plans for national carrier privatization

24 April 2024 06:20 am - 23     - {{hitsCtrl.values.hits}}

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Colombo, April 24 (Daily Mirror) - Sri Lanka is in a dilemma to decide whether to adopt an open skies policy or not in the event of divestiture of shares of the national carrier ‘SriLankan Airlines’, a top official said .

An Open Skies policy means liberalization and ease of access and rules of use of national airports for foreign airlines. It is joined in order to increase the tourist flow and to develop the potential as a regional air hub.

The government has now called for bids to privatize or restructure the national career .

The government, acting through the Ministry of Finance, Economic Stabilization and National Policies called for Request for Qualification (RfQ) from potential investors for the acquisition of shares in SriLankan Airlines Limited. The deadline for submission of proposals ended at 2pm on Monday, April 22, 2024.

The RfQs received were considered by the Opening Committee appointed by the Special Cabinet Appointed Negotiating Committee. 6 RfQs were received from the following parties: 1. AirAsia Consulting Sdn. Bhd. 2. Dharshaan Elite Investment Holding (Pvt) Ltd 3. FITS Aviation (Private) Limited 4. Sherisha Technologies Private Limited 5. Treasure Republic Guardians Limited 6. Hayleys PLC

In the event of adoption of an open skies policy, the concept of national career will not be important since the country will be open for global airlines to operate based on economic, commercial conditions.

However, the availability of a national career is important to serve people when other airlines don’t operate given unattractive commercial conditions .

Asked whether the government will go for an open skies policy, a top official said it is yet to be decided .

“There are pluses and minuses of such a policy. We have to weigh the pros and cons. We are yet to decide on it,” he said.


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  Comments - 23

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  • Shera Wednesday, 24 April 2024 06:47 AM

    What are the cons of open skies in terms of national security? Would countries like Iran who are at war with the world manipulate Sri Lanka's open skies?

    Concerned Citizen Wednesday, 24 April 2024 04:51 PM

    Excellent question. hope China, Iran, Russia, North Korea ARE KEPT WELL AWAY FROM INVESTING ONE RED CENT INTO THE PURCHASE OF OUR NATIONAL AIRLINE.

    Chrishantha Perera Saturday, 27 April 2024 01:07 PM

    Why need to privatize? Just stop corruption, airline will boom with profits.

    Try it Out For a Few Years with More Budget Flights Wednesday, 24 April 2024 06:58 AM

    At this moment, open policies needed to get in the numbers up. Currently air fares to SL are high and may be pushing tourism to other Asian countries where there are abundance of budget flights. Tourists will pay less for reasonable flights and more at tourist destinations. Try it out for 2 to 4years and see the sudden continuous influx of tourists. Look at Indonesia, Thailand, Malaysia and Singapore with their open skies policies. Abundance of budget flights too for people to choice and all operating at a profit. Win win situation.

    SM Thursday, 25 April 2024 05:55 PM

    For example, a flight from Melbourne to Colombo during the Christmas holidays costs $1,750, where as a similar flight to Chennai costs only $1,450. For a family of 4 that’s a saving $1,200, which will cover a significant part of the cost of a 2 week holiday. This shows how unattractive Sri Lanka is making itself with these political, protectionist policies that protect the local unproductive SOE and government employees.

    Jude Wednesday, 24 April 2024 06:59 AM

    It's a island only way in and out is by air. Government should collect hefty landing fees from any flights landing on Lankan airports. Just don't involve in any airline business

    Vernon Thursday, 25 April 2024 11:15 PM

    And all that is collected is plundered by the Airport Authority or the politicians.

    Sambo Wednesday, 24 April 2024 07:40 AM

    Sri Lanka is country that's ruins every asset of the country. They cannot see a something doing well and need to ruin it.

    Bandu Wednesday, 24 April 2024 07:53 AM

    Split the domestic and international routes. International routes it should be open skies. Let the consumer get the best price. Not monopolies easy decision. Sadly media is not articulating the customers view pt.

    Manik perera Wednesday, 24 April 2024 08:16 AM

    Very high possibility to Heyeya. N.P.. DP. and NR all together ......

    begger Wednesday, 24 April 2024 08:57 AM

    Just sell the rotton ego and close the airline. Atleast the national coffers can save some money. Operating a business at a loss to feed the egos of a proud nation!! Only the proud is now begging from all counties to stand tall

    Christo255 Wednesday, 24 April 2024 09:01 AM

    A good indication of the perception of others about UL. Not a single major player except for two budget carriers, even after government promising to absorb half the losses. Thank you MR for ruining everything

    GC Wednesday, 24 April 2024 09:07 AM

    "the availability of a national career is important TO SERVE PEOPLE" . Should this be, TO SERVE POLITICIANS?

    ishanga - Austalia Wednesday, 24 April 2024 10:21 AM

    Hope this doesn't get sold to a rajapakse shelll co.

    Ratnasuri Hadirampola Wednesday, 24 April 2024 10:42 AM

    Let Heylys be given the responsibility since it is Sri Lankan multi-million business management group with successful past records

    sam Wednesday, 24 April 2024 11:46 AM

    Govt administration has failed all over.

    Just Another Citizen Wednesday, 24 April 2024 12:00 PM

    Give the list of local bidders, Fits Air seems to be the best option at this time

    P Kunchithapathan Wednesday, 24 April 2024 12:13 PM

    Top people in the government are in a delima to get the best cut from the ever ailing SOEs, especially from the Srilankan Airlines.

    Chatura Ranaweera Wednesday, 24 April 2024 06:53 PM

    The benefits of open skies far outweigh the negatives. The politicians like a national career because they want to be treated like royalty when they travel. The people don't care at all. There will be a huge financial gain by making it open skies. The only issue is during a crisis; pandemic, war, etc. How do we for instance repatriate people if needed? This can be done through separate agreements. That should NOT be a deal breaker.

    WE NEED PEACE IN OUR COUNTRY AND REGION Wednesday, 24 April 2024 07:09 PM

    OPEN SKIES WILL BE RANIL AND GOVERNMENT'S DOWNFALL. OUR AIRPORTS AND SEAPORTS SHOULD ONLY BE EXTENDED TO COUNTRIES THAT DO NOT HAVE A VESTED INTEREST IN OUR REGION, MEANING ALL COUNTRIES GOVERNED BY DICTATORS SHOULD BE KEPT AND RULED OUT.

    DAR Thursday, 25 April 2024 04:21 AM

    What people need to understand is that Sri Lankan airlines is failed government business which is bankrupted and continue to accumulate billions of dollars in debt due to corruption and mismanagement. Debt is added to national budget every year, We the citizens keep paying it from our pockets. Wise decision is to ground it, liquidate the company, sell assets immediately to pay off the debt. Sri Lankans can perfectly live without Sri Lankan Airlines.

    Mark Shapiro Thursday, 25 April 2024 11:13 AM

    Please do not offer to Fits Aviation. That will be the end of Sri Lankan airlines. Their owners cannot even handle two planes and two 3 destinations!

    UMAS ALI Tuesday, 30 April 2024 08:15 PM

    MR got the MARRIOT hotel in BUBAI with stolen tseunami relief fund money


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