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From Ceylon today ,
A major landmark in Sri Lanka's aviation industry was reached, when Lufthansa Consulting, the advisory arm of Germany's national carrier, Lufthansa Airlines, with a fleet strength of 450 aircraft, signed an agreement with Peace Air, an indigenous Sri Lankan company, to do the due diligence, in the latter's bid to acquire the national carrier.
Peace Air has signed for a due diligence and a Framework Agreement with Lufthansa Consulting, Peace Air Director Ireha Wettasinghe told Ceylon Today late Friday night.
We have US $ 5.5 billion (Euro five billion) at our disposal to buy the national carriers, SriLankan and Mihin, which will also see the Sri Lanka Rupee appreciate to around
Rs 112 to the dollar, Wettasinghe observed.
She added that the due diligence will take around eight weeks. "Then, we will know everything about the national carrier and its sister company, through MRO (Maintenance Repair and Overhaul), pilots, cabin crew and all that."
Commenting on the fleet strength of SriLankan Airlines, she said that the plan was to expand the airline to 50 aircraft first by cancelling the lease of the existing fleet of 21 aircraft.
Of the operating leases, both SriLankan Airlines and Mihin, are using Aircraft on operating lease, but SriLankan Airlines does not own a single Aircraft, albeit these leases being negotiated at very exorbitant rates.
"SriLankan Airlines is making profits daily, but the profits are going to pay for those who arranged the operating leases. These agents collect their kickbacks abroad. That is how they have bought hotels in Paris," Wettasinghe said.
She also explained that the national carrier was left on the brink of bankruptcy and insolvency after paying the Agents their fees and kickbacks despite the Airline having occupancy rates of between 70% and 100 % at almost all times.
Wettasinghe said that it appeared that the airline was currently overstaffed, but that would be negated when the airline buys 50 aircraft with the acquisition, as additional staff would be needed at all levels, ranging from pilots, first officers, cabin crew and ground handling staff.
"We may need to take another 1,500 aviation staff. We think that we may end up having an 8,500- strong aviation workforce. This will fortify the Airline immenselywith the Ex - Sri Lanka Air Force Maintenance Staff to be recruited as well for MRO facilities," she said.
COLUMNS
A major landmark in Sri Lanka's aviation industry was reached, when Lufthansa Consulting, the advisory arm of Germany's national carrier, Lufthansa Airlines, with a fleet strength of 450 aircraft, signed an agreement with Peace Air, an indigenous Sri Lankan company, to do the due diligence, in the latter's bid to acquire the national carrier.Peace Air has signed for a due diligence and a Framework Agreement with Lufthansa Consulting, Peace Air Director Ireha Wettasinghe told Ceylon Today late Friday night.
We have US $ 5.5 billion (Euro five billion) at our disposal to buy the national carriers, SriLankan and Mihin, which will also see the Sri Lanka Rupee appreciate to around
Rs 112 to the dollar, Wettasinghe observed.
She added that the due diligence will take around eight weeks. "Then, we will know everything about the national carrier and its sister company, through MRO (Maintenance Repair and Overhaul), pilots, cabin crew and all that."
Commenting on the fleet strength of SriLankan Airlines, she said that the plan was to expand the airline to 50 aircraft first by cancelling the lease of the existing fleet of 21 aircraft.
Of the operating leases, both SriLankan Airlines and Mihin, are using Aircraft on operating lease, but SriLankan Airlines does not own a single Aircraft, albeit these leases being negotiated at very exorbitant rates.
"SriLankan Airlines is making profits daily, but the profits are going to pay for those who arranged the operating leases. These agents collect their kickbacks abroad. That is how they have bought hotels in Paris," Wettasinghe said.
She also explained that the national carrier was left on the brink of bankruptcy and insolvency after paying the Agents their fees and kickbacks despite the Airline having occupancy rates of between 70% and 100 % at almost all times.
Wettasinghe said that it appeared that the airline was currently overstaffed, but that would be negated when the airline buys 50 aircraft with the acquisition, as additional staff would be needed at all levels, ranging from pilots, first officers, cabin crew and ground handling staff.
"We may need to take another 1,500 aviation staff. We think that we may end up having an 8,500- strong aviation workforce. This will fortify the Airline immenselywith the Ex - Sri Lanka Air Force Maintenance Staff to be recruited as well for MRO facilities," she said.
COLUMNS
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