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Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

sashimaal

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Post n°26

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by sashimaal Mon Mar 28, 2016 12:25 pm

Good article, thanks for sharing HAL9000

HAL9000 wrote:http://www.lankadeepa.lk/index.php/articles/399095

The above details in a sinhala news paper web.

yellow knife

yellow knife: Top contributor; Posts : 6980
Join date : 2014-03-27

Post n°27

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by yellow knife Mon Mar 28, 2016 12:55 pm

Thanx Kith and others who have shown interest in this subject. I think Kith has more interest and knowledge in the subject.

***************************************

1. Being State Owned is not an issue. There are 148 State owned air lines.

2. Handful State Owned Air Lines of the world make profit and others make losses.

3. Air Line industry's cost structure is highly depending on fuel and up and down in fuel price also affect to the profitability.

Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister - Page 2 Aviation-industry-and-mro-sector-trends-q1-2014-12-638

Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister - Page 2 Aviation-industry-and-mro-sector-trends-q1-2014-12-638

This cost structure changed from oil price rocketing and plummeting and shows the difference between 2013 and 2015

Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister - Page 2 1211bus_airlinecosts

Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister - Page 2 1211bus_airlinecosts

4. Even Sri Lankan Air Lines made profit based on strategies used like being managed by another air line

Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister - Page 2 SriLankan-Airlines-2

Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister - Page 2 SriLankan-Airlines-2

5. A more detailed analysis needed on Sri Lankan Air Lines highlighting the cost structure etc required and its not only SLAir Lines that made massive losses and a comparison needed for these as well.

Three state institutions have incurred a loss of Rs 40.2 billion: reveals COPE

The loss-making state institutes mentioned in the report are the Ceylon Petroleum Corporation, National Paper Company and Sri Lankan Airlines.
The senior minister says that the proposal made by COPE to remove the chairman and a senior member of management of state institutions, was carried out by the government.
http://newsfirst.lk/english/2014/11/cope-reveals-3-state-institutions-incurred-loss-40-2-billion-rupees-last-year/62780

Instead of making Sri Lankan Air Lines, the escape-goat for all mis managing of now and then, its better to discuss with an aim to find a solution.

If Ceylon Petroleum still run at losses , whose responsibility is that now ?

6. Taking examples from other nations and study them.

Even the countries which are examples for Good Governance failed in Ari Line businesses.

Definitely for Sri Lankan Air Lines, corruption can be a real reason but not the only reason.

Nevertheless, all were extremely difficult because of heavy losses, debts and legacy costs, which tend to scare investors away. In fact, some have stated that it might be cheaper to start an airline from scratch the way Switzerland did.

In fact, Switzerland provides important lessons for the rest of the world of letting go of a national carrier because of the huge losses Swissair generated. Rather than bailing out Swissair, the company was liquidated. A small regional carrier took over its staff, aircrafts and routes, and created a new airline, Swiss International Air Lines, with initial funding from the government. Three years later it was sold to Lufthansa.

http://www.dailynews.lk/?q=2015/10/06/business/should-government-run-airline

7. A detailed impartial analysis will be important for Sri Lankans.

Now we are thankful for PM to bringing this up and now its up to the journalists to force and do the best for Sri Lanka
.

Ukboy

Ukboy: Top contributor; Posts : 360
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Post n°28

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by Ukboy Mon Mar 28, 2016 1:35 pm

On the top of the loss making Srilankan we have Mihinair as well. Mihiniair should be closed immediately.

HAL9000

HAL9000: Top contributor; Posts : 1402
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Post n°29

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by HAL9000 Mon Mar 28, 2016 2:08 pm

Ukboy wrote:On the top of the loss making Srilankan we have Mihinair as well. Mihiniair should be closed immediately.

It was earlier started for provide cheap air fair to "Dambadiva" pilgrimage for " Upasaka Amma's", (In addition to image booster of the King), eventually if we saved the colossal money lost, all of them could have sent free of charge. Razz

yellow knife

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Post n°30

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by yellow knife Tue Mar 29, 2016 7:31 am

HAL9000 wrote:

Ukboy wrote:On the top of the loss making Srilankan we have Mihinair as well. Mihiniair should be closed immediately.

It was earlier started for provide cheap air fair to "Dambadiva" pilgrimage for " Upasaka Amma's", (In addition to image booster of the King), eventually if we saved the colossal money lost, all of them could have sent free of charge.

If I am not mistaken a Hoarding of Mihin Air is renewed at Miliban Junction, Ratmalana. As it seems it is so new as re-pasted last night. It says Mihin cover 12 destinations. This sticker skin is so new definitely it cannot be the same design shown before 8th Jan 2015.

******************************************************

Yesterday I called a friend of mine working in Sri Lankan Air Lines to get to know the current situation. He said these days its employees are busy applying European Tours, given to employees as a privilege. It seems Sri Lankan Air Line is equal to American Insurance Group AIG, where employees are sharing bonuses while Ben Bernanke is deliberating how to bail out the company.

කිත්සිරි ද සිල්වා

කිත්සිරි ද සිල්වා: Top contributor; Posts : 9679
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Post n°31

ICAO Questions Civil Aviation And SriLankan Airlines For Risking Passenger Lives

by කිත්සිරි ද සිල්වා Tue Mar 29, 2016 3:40 pm

ICAO Questions Civil Aviation And SriLankan Airlines For Risking Passenger Lives

The International Civil Aviation Organization has written to the Civil Aviation Authority of Sri Lanka seeking explanation for flight safety violations caused by Mihin Lanka‘s controversial flights operated to Seychelles.

MihinH.M.C. Nimalasiri Director General of CAA Sri Lanka has forwarded ICAO’s letter to the management of SriLankan Airlines seeking their answers to complete a letter of response.

Mihin Lanka as an airline has been hell bent on operating the flight Colombo / Seychelles / Colombo under the former Head of Flight Operations Capt. Pujitha Jayakody, risking passenger and crew lives when at times the weather has been reported to be below the legal flight operating limits approved by international bodies. Documentary evidence seen by Colombo Telegraph indicates that Mihin Lanka Flights MJ 707/8 operated on 20th June 2015, 25th August 2015, 29th August 2015, 1st September 2015 and 3rd September 2015, were all illegally operated when the weather was below the minimum safety permitted conditions for the flights to depart from Colombo.

Read more

HAL9000

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Post n°32

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by HAL9000 Thu Mar 31, 2016 4:44 pm

Thanks YK for details analysis. By the way, It seems you tend to justify and promote state run ventures. It is important to have some state owned businesses which could be strategically important like power and energy. There are many state businesses in SL which manged in most horrible way, meanwhile some private businesses in the same country has come up with world class standards in productivity. Just see the link. Don't you think we missed some thing in past 40 years or so ?

http://www.lankabusinessonline.com/sri-lankas-sagt-bags-4th-place-in-world-terminal-productivity-rankings/

yellow knife

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Post n°33

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by yellow knife Thu Mar 31, 2016 5:15 pm

We often highlight what we want to see. Our thinking is often predetermined.

I , like Deng Xiaopeng would say I dont mind whether the Cat is Black or White as long as it catch mice.

Private sector should not be crowded out by doing all businesses by government.

At the same time State sector should not be thrown out just to make space for private sector.

Certain key businesses should be handled by government even at a loss and later to be born by tax payers.

Yet CEOs or Chairmen should be linked to performance based bonus culture of these institutions.

----------------------------------------------

These are few eye openers

1. Yesterday I came across accounts of a Government's girls school in Colombo.. Not Vishaka or near to that.

But the accounts shows 4.7 Million in Current Ac and 38.9 Million in FDs...

So.....?

2. I know you was interested in SOEs under Tamasek model...and was happy when PM state that.

Now take an annual report of ...m...m.... say ...not nice to name any SOE and look at the newly appointed directors and their qualifications..

3. An officer of State Printing corporation has visited another government organization and asked to quote for printing and quoted 300% higher price than current buying price.

No Two words... SAGT is really good.. and so is JKH

HAL9000

HAL9000: Top contributor; Posts : 1402
Join date : 2014-08-11
Location : Colombo

Post n°34

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by HAL9000 Fri Apr 01, 2016 6:39 pm

http://sinhala.adaderana.lk/news/58816/%E0%B7%81%E0%B7%8A%E2%80%8D%E0%B6%BB%E0%B7%93-%E0%B6%BD%E0%B6%82%E0%B6%9A%E0%B6%B1%E0%B7%8A-%E0%B6%B4%E0%B7%8F%E0%B6%A9%E0%B7%94%E0%B7%80-%E0%B6%B6%E0%B7%92%E0%B6%BD%E0%B7%92%E0%B6%BA%E0%B6%B1-128%E0%B6%BA%E0%B7%92---%E0%B6%9C%E0%B7%9C%E0%B6%A9%E0%B6%9C%E0%B6%B1%E0%B7%8A%E0%B6%B1-%E0%B7%80%E0%B7%92%E0%B6%AF%E0%B7%9A%E0%B7%81-%E0%B7%83%E0%B7%84%E0%B6%BA-%E0%B6%85%E0%B7%80%E0%B7%81%E0%B7%8A%E2%80%8D%E0%B6%BA%E0%B6%BA%E0%B7%92

At least some light at the end of the tunnel !

Ukboy

Ukboy: Top contributor; Posts : 360
Join date : 2014-02-28

Post n°35

Re: Sri Lanka's state-run SriLankan Airlines is not be able to service debt: Prime Minister

by Ukboy Fri Apr 01, 2016 7:12 pm

Cardboard patriots now completely forgot what was the closest reason for terminating that Emirates deal.

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