Friday, April 6, 2012

Running airlines, doing politics and observing religion of Sri Lanka government

Sri Lanka's national career SriLankan said it had decided to cancel flights to Zurich, Rome and Milan from May to June.

A spokesman of Sri Lankan said that the suspension was since less demand expected during this period.

Flights to these destinations are to resume during the last week of June. However, they are to suspended again by September to resume again in the peak time.

The Airline announced that the move was taken in a bid to cut costs amidst the rise in fuel and operational costs.

Sri Lankan Airline is due Rs. 12350 million and Mihin Air is due Rs. 1210 million to Ceylon Petroleum Corporation for the purchase of fuel as per the Minister of Petroleum Resources reported to the parliament on April 04.

As per The Sunday Leader reported on March 25, 2012, SriLankan Airlines is expected to lose for the year (up to March 2012) a staggering Rs. 18.7 billion.

Then the company was hoping to avoid further financial despair having received a government guarantee to obtain a Rs. 21.9 billion loan from the Mashreq Bank in the United Arab of Emirates.

Alongside this loan the government had also approved last month a five year Treasury bond to the value of Rs. 14.2 billion.

Dr. P. B. Jayasundera, Secretary, Ministry of Finance, told The Sunday Leader that the five year Treasury bond was not a loan. ‘The President proposed a Rs. 65 billion infusion plan in the budget,’ he said.

It means that the public will pay this.

State owned Sri Lankan airline management may have done rescheduling of flights to minimize losses that are balanced by people of this country.

Transiting is definitely an inconvenience. Therefore, the passengers are sure to love direct flights. On the other hand it is cheaper for them. But the airline will not stop any flight today if it is profitable since airlines are there to run airplanes.

What happens now?

President Mahinda Rajapaksa has directed the CEO of Sri Lankan airline Kapila Chandrasena to continue the direct flights to Italy without temporary suspensions.


The President made this direction as Colombo Cardinal Rev. Malcom Ranjith Peiris informed the President at the Temple Trees on April 05 about the Sri Lankan's suspension of flights to several European destinations.

Perhaps, the President took his phone and dialed his company and asked his manager to stop suspension of his flights to his destinations. His car, his petrol! We pay your bill!

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