Top official alleges Govt. moves undermine SriLankan

By Rathindra Kuruwita-February 6, 2019, 11:18 pm 

Nimal Senanayake, Senior Manager–international relations of SriLankan, on Tuesday, warned of dire consequences if its rivals were allowed by the government to engage in ground handling at the Bandaranaike International Airport and provide catering services. Senanayake said that the government was now exploring the possibility of allowing competitors to handle those tasks. Senanayake said so before the Presidential Commission of Inquiry (PCoI) on irregularities at SriLankan Airlines, SriLankan Catering and Mihin Lanka.

"Currently, SriLankan is the sole ground handler for all airlines operating to and out of BIA. Similarly, catering services, too, are provided by the national carrier. They generate a lot of revenue for the airline.

In accordance with proposed overall plan on national aviation policy, the government "had presented the SriLankan with a draft proposal, Senanayake said. Among various recommendations were allowing competition in ground handling and catering services. The government also proposed to have additional fuel providers as well and the SriLankan had accepted the proposal because fuel amounted to 35-40% of the total costs and a competitive pricing formula would have been helpful, he said.

However, the Sri Lankan had not seen further amendments to that draft, he said. State Counsel Chathura Gunatilake, who led evidence presented him with the latest draft that dealt with the national policy. During Tuesday’s proceedings it transpired that the clause on having multiple fuel providers had been dropped though the proposal as regards ground handling and catering remained.

The P CoI was told that in accordance with Article 6 of the Civil Aviation Act, No. 14 of 2010, which dealt with the appointment of service providers, only a public corporation or a company, in which the government held majority of shares could be appointed to ‘supply aviation fuel and lubricants to aircraft; the provision of ground handling facilities or services to aircraft and the provision of catering services to aircraft.’

Senanayake said that in spite of repeated claims to transform Sri Lanka to a hub in the Indian Ocean, successive governments had weakened the national carrier, while strengthening its rivals. If the governments had developed the airline, it could have contributed greatly to realising the dream of making the country a regional hub.

"Singapore airlines played a big role in making Singapore a hub and Emirates helped make Dubai a logistics hub. For many years, UAE didn’t even allow even domestic competitors to Emirates to operate, and still Qatar ensures that there is no threat to its domestic carrier. Look how many years Singapore and UAE took even to start a budget carrier? They waited till their national carriers emerged strong and they funded their carriers. Sri Lankan governments have entered into aviation agreements with countries competing with Sri Lankan."