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Travel Bloggers Confab in June
Cinnamon Hotels & Resorts together with the national carrier SriLankan Airlines are gearing up to host an incredible group of 60 travel bloggers in the country as part of the Cinnamon Travel Bloggers conference Sri Lanka- Cinnamon TBCasia from 2 to 7 June 2016. This year a novel component has been introduced, which is the Cinnamon Travel Blogger awards.
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SriLankan Airlines unable to repay US$ 1 Billion Debt
Sri Lanka's loss-making national carrier will not be able to repay its debt of nearly US$ 1 billion, Prime Minister Ranil Wickremesinghe told parliament Wednesday.
With its own finances in a rocky state, the government will decide within six weeks whether it can afford to take over SriLankan Airlines' debt repayments, the premier said.
State enterprise development minister Kabir Hashim, who oversees the carrier, earlier this month put its debt at $933 million but on Wednesday it emerged the figure could be higher.
"The minister says the actual debt is likely to be much more than what we initially feared," Wickremesinghe said during a parliamentary debate on the economy. "SriLankan Airlines will not be able to repay this debt. We will have to take a decision on this."
http://www.sundaytimes.lk/98971/sril...y-1-bn-debt-pmComment
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CONOMYNEXT - Colossal losses that state-run SriLankan Airlines was made to suffer since ex-President Mahinda Rajapaksa chased away Emirates Airlines, and a questionable aircraft deal, is a national financial crime, Deputy Minister Eran Wickramaratne said.
SriLankan Airlines, which made profit of 4.4 billion rupees in 2008, the year in which the management agreement with Emirates Airlines ended, has lost 107 billion rupees since, then.
The Rajapaksa administration had cancelled the visa of then Chief Executive Peter Hill because he did not bump enough paying passengers to accommodate a large entourage of the President Mahinda Rajapaksa in a single aircraft, he said.
"The CEO had said 'We should not offload all these passengers since they are citizens and they are paying passengers where there is a contract'," Wickramaratne told parliament.
"The next day his visa was cancelled in 2007."
Emirates exited the airline after 2008 sold their 40 percent shares to the government.
full read http://www.economynext.com/Colossal_...-3-4571-6.htmlComment
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Suggest that those who still do not understand read this article.
-UL is not a business
-Aircraft orders have nothing whatsoever to do with the requirements of the Airline
The entire Airline is riddled with corruption and incompetence from top to bottom.
There is clear evidence of theft, fraud, abuse of power and corruption on a massive scale.
And still no investigation - just more talk.
The latest Rumour that I have heard is that there will be a shutdown and a re-start under different name. I can see it happening.Always fly a stable approach - it's the only stability you'll find this businessComment
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I agree.
The really sad thing is that none of this should have happened. This could have been a profitable Airline.
The reason I think a shutdown a restart will take place is simply because this effectively halts any investigations. This allows the Politicians, family, friends and cronies to keep their illegally obtained money.
Sri Lankan people get screwed (again) - but that's nothing new.Always fly a stable approach - it's the only stability you'll find this businessComment
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http://www.sundaytimes.lk/160327/col...ed-187767.html
Think you could be on the money unless they commit to pump in another $1 billion USD to clear the balance sheet (as per the above link).Comment
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- The GOSL will write off the losses in the books via a capitalisation to present a clean balance sheet and achieve a zero finance cost status. This will cost the GOSL approximately Rs. 135 billion or US$ 939 million.
- The four A350 900 aircraft be subleased to other operators or cancel the lease contract at a cost of US$ 200 million to US$ 300 million and the GOSL to foot the bill. This will cost the GOSL approximately Rs. 43.2 billion or US$ 300 million.
- Although resource optimisation is strongly recommended by Nyras, the costs and outcome have not been incorporated in its projections. The implementation of a resource optimisation programme will have a cost impact in the year of implementation and could be in the range of Rs. 15 billion to Rs. 18 billion or US $ 100 million. Analysing the above, Nyras says, the cash outlay would be in the range of Rs. 175 billion to Rs. 200 billion.
- Among the factors covered by the Nyras plan are a shrink in Srilankan fleet from 25 to 20, increase in aircraft utilisation, increase passenger numbers, increase seat capacity, increase block hours and “consider Alternative D to remove ‘hangman’s noose’ of Aercap, Airbus and Rolls Royce contracts.” This alternate “D” related to the administration process.
Around $1.25 billion injection is required from GOSL to have a clean sheet with the current economic crisis that is highly unlikely.
A telling excerpt from the article (not taking the plundering into account) is this though:-
In 2008, when Emirates pulled out, the accumulated profit of SriLankan was Rs. 9.288 billion in that financial year. From 2008 to 2015, when the Rajapaksa administration ran it, the loss for the seven years was Rs. 128.238 billion.
And there are some who want them back
One of the other other reasons for the early presidential election in 2014 other than the astrological bruuhaa was this oncoming economic crisis.Comment
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Aercap has not responded to my inquiry regarding the UL A350 order - these deals are normally confidential - not really a surprise.
http://www.sundaytimes.lk/160327/col...ed-187767.html
Good article. Unfortunately the GOSL is nothing but NATO members.....
They did just vote themselves more vehicles and money - shows where their priorities lie.
The sad truth is the entire country is bankrupt - the fact that they are talking to the IMF says it all.
As long as the culture of impunity and zero accountability continues to exist it's all a lost cause imho.Always fly a stable approach - it's the only stability you'll find this businessComment
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