Govt says shortlisted bidders for SriLankan Airlines lack experience

Peace Air Pvt Ltd, owned and managed by Sri Lankan business magnate Gamini Wettasinghe, says that it has offered a bid of US$ 5.5 billion to buy 70% stake in the national carrier SriLankan Airlines and 90% share of budget carrier Mihin Lanka.

Peace Air has also made an offer to the government to purchase 80% stake in the Mattala International Airport for US$ 22.2 billion.

“We have also brought in US$ 5.5 billion cash into the system. We have already got the Lufthansa group and basically we have got Deutsche Bank sending the SWIFT confirming the funding,” Mr Wettasinghe said, addressing a press briefing in Colombo on Thursday.

“Did you know that SriLankan Airlines is carrying 5 million passengers per annum? Did you know that they earn US$ 1 billion?”

“This airline, this 7000 qualified group of people are making thousand million dollars for this country and none of us are bothering even to say thank you to them.”   

“And now SriLankan Airlines is therefore making profits, they are making lot of money but who is siphoning off this money? The operating people,” he charged.

He added that Mihin Lanka will be operated as a separate company if the bid is accepted and that they will recruit all those who lost their jobs due to the merger with SriLankan Airlines.  

“Can you sack anybody in a national airline in another country and just getaway? They sacked 400 Mihin Air people but where does a Sri Lankan airline staff go? They are professional people. They have nowhere to go. That’s why I am fighting for them.” 

He stated that you need a budget carrier to operate with an international carrier and that he plans to unmerge the SriLankan Airlines and Mihin Lanka, if the bid is accepted. 

Wettasinghe, however, said that there will be a change of heads in the present top management if he gets to operate the airline. 

Meanwhile Sri Lanka’s Public Enterprise Development Minister Kabir Hashim says that three companies including TPG Asia and Peace Air have been shortlisted, however none of the possess any experience in maintaining an international carrier.  

Responding to questions from journalists on Friday (20) regarding the bid, he said that if none of the three companies are finally selected a three-member committee comprising himself and Ministers Sarath Amunugama and Malik Samarawickrama will be appointed to study the issue. 

He stated that in the restructuring process of the national carrier, the Sri Lankan government expects an equity partner and that the share percentage is not of importance.
 
The minister said that government intends to handover the management of the carrier to the selected partner.