Sri Lanka Aviation
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Mihin Lanka to remain separate to SriLankan Airlines
SriLankan Airlines Chairman Ajith Dias says fellow state-owned carrier, Mihin Lanka, will not be merged into SriLankan Airlines as previously expected. Speaking to Lanka Business Online, Dias said while the loss-making LCC is being managed alongside SriLankan Airlines, it would remain a separate entity.
“We are running Mihin as a separate company and managing it. They are paying for that (management) as it is not free,” he said. “We are not trying to merge the two companies because one is different to the other. Also some of the routes that Sri Lankan are flying have been given to Mihin Lanka.”
SriLankan Airlines (UL, Colombo International) chairman Ajith Dias says fellow state-owned carrier, Mihin Lanka (Colombo International), will not be merged into SriLankan Airlines as previously expected. Speaking to Lanka Business Online, Dias said while the loss-making LCC is being managed alongside SriLankan Airlines, it would remain a separate entity. “We are running Mihin as a separate company and managing it. They are paying for that (management) as it is not free,” he said. “We are not trying to merge the two companies because one is different to the other. Also some of the routes that Sri Lankan are flying have been given to Mihin Lanka.” In February this year, Sri Lanka's newly appointed Minister of Finance, Ravi Karunanayake, said consolidating the two carriers into one company would help cut losses while increasing productivity. Mihin, a budget carrier operating flights to the Indian Sub-continent, the Middle East, and South East Asia, has racked up LKR15 billion (USD113.37 million) in losses since 2010 while its full-service counterpart, SriLankan, lost LKR100 billion (USD755.8 million) over the same period.Comment
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Mihin Lanka expands network with Muscat
Mihin Lanka, will commence flight operations to Muscat, the capital city of Oman from October 25.
Four weekly flights will be introduced and will operate every Tuesday, Thursday, Saturday and Sunday from Bandaranaike International Airport.
The frequencies will increase to five weekly flights from November 11,2015 and the additional flight will operate on Wednesdays. The four-hour direct flight will provide passengers with an affordable, convenient and comfortable travel option to Muscat.
http://www.dailynews.lk/?q=business/....RbKRgPNr.dpufComment
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I m sorry . cant understand this bullshit. he says MJ will be running as a separate Airline and then gives UL route to MJ.Mihin Lanka to remain separate to SriLankan Airlines
SriLankan Airlines Chairman Ajith Dias says fellow state-owned carrier, Mihin Lanka, will not be merged into SriLankan Airlines as previously expected. Speaking to Lanka Business Online, Dias said while the loss-making LCC is being managed alongside SriLankan Airlines, it would remain a separate entity.
“We are running Mihin as a separate company and managing it. They are paying for that (management) as it is not free,” he said. “We are not trying to merge the two companies because one is different to the other. Also some of the routes that Sri Lankan are flying have been given to Mihin Lanka.”
http://www.ch-aviation.com/portal/ne...-airlines-dias
Mihin Lanka expands network with Muscat
Mihin Lanka, will commence flight operations to Muscat, the capital city of Oman from October 25.
Four weekly flights will be introduced and will operate every Tuesday, Thursday, Saturday and Sunday from Bandaranaike International Airport.
The frequencies will increase to five weekly flights from November 11,2015 and the additional flight will operate on Wednesdays. The four-hour direct flight will provide passengers with an affordable, convenient and comfortable travel option to Muscat.
http://www.dailynews.lk/?q=business/....RbKRgPNr.dpufComment
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BAH route was transferred from UL to MJ but now MCT. Is MCT route not making profit for UL? I remember UL was operating daily flights to MCT but the frequency was downgraded to 4 weekly few months back when UL launch the 3 weekly flights to KMG.Comment
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I doubt it for now, But having a private shareholder may help MJ operate as a company that aims to make profit.
The gov may be looking to rename it, Mihin kind of reminds of Mahinda and they may replace the Lotus symbol as wellComment
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Well the 2x A320NEOs for MJ were confirmed a while back AFAIK. As to the other information, good news if its true. In fact the government should sell a shareholding in the whole of UL to DP or another private investor who can turn it around.Comment
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When you assume control of an Airline you become responsible for all the liabilities (debts) as well. This includes past and future liabilities.
Both UL and MJ have run up huge debts and are not anywhere close to being profitable. Future liabilities are anyone's guess - but I'm sure that it once again involves large amounts of money.
There is no business case for either of these companies - no investor is going to step in because of the huge liabilities.
Both companies are insolvent (bankrupt) - they only operate because the government has kept putting money in to keep things running.
They've already tried to sell UL to EK and QR - an indication of how dire the financial situation really is.Always fly a stable approach - it's the only stability you'll find this businessComment

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