Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka hardly needs two government-owned airlines, industry expert says
Thu, May 15, 2014, 07:44 pm SL Time, ColomboPage News Desk, Sri Lanka.

May 15, Colombo: CAPA - Centre for Aviation, a leading provider of research and analysis for global airline industry says Sri Lanka is too small to operate two state-owned airlines, as its budget carrier Mihin Lanka prepares to introduce business class from this month.

The leading provider of independent aviation market intelligence, analysis and data services, covering worldwide developments suggests merging the budget carrier Mihin Lanka with the national carrier Sri Lankan Airline.

According to a recently report released by CAPA Mihin Lanka plans to transition from A320 family aircraft to 737-800s and introduce a business class from 25-May-2014. However, Sri Lanka's government-owned budget carrier is expected to remain very small with a fleet of only three aircraft.

While Mihin Lanka has had some success opening secondary routes, the carrier is too small to generate any significant economies, the report says.

CAPA suggests the Sri Lankan government to relook at the business case for Mihin Lanka and consider merging the carrier into the flag carrier SriLankan Airlines. It says a merger before the implementation of the re-fleeting plan would be logical.

Sri Lanka's two carriers are both fully government-owned and codeshare on some routes, but are separate companies. Both airlines are operating at losses.

"It is hardly a typical two-brand strategy, but Sri Lanka's politics-riddled aviation policy is hardly a sound one," the report notes.

CAPA delivers market analysis and data that support strategic decision making at many of the world's most recognized organizations.

ColomboPage - Recent 10 Stories
Death toll from adverse weather in Sri Lanka rises to 11, over 100,000 affected
-- [5 minutes ago]
Sri Lanka International Gem and Jewellery show, FACETS 2018 from 30th August
-- [1 hour and 12 minutes ago]
Bill to establish '1990 Suvaseriya Foundation' to expand free ambulance service tabled in parliament
-- [1 hour and 31 minutes ago]
UNP National List MP Mohamed Navavi resigns from post
-- [2 hours ago]
Australia partners with WFP, UNICEF to provide Rs. 89 mn assistance to Sri Lanka to prepare for natural disasters
-- [2 hours ago]
U.S. assistance for Sri Lanka's disaster preparedness ahead of the monsoon season
-- [3 hours ago]
Sri Lanka Army ready to deploy 1000 troops for disaster relief
-- [9 hours ago]
Viral flu in the South under control - Health Services DG
CEB engineers suspend trade union action in districts affected by adverse weather
Aitken Spence posts 22% growth in PBT in 2017/18

Copyright © 2000, 2014 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.