DUBAI: Emirates airline plans to increase its stake in SriLankan Airlines from its current 43 per cent holding, according to SriLankan Airlines Regional Manager Mohamed Fazeel. He said that Emirates and the government of Sri Lanka would hold talks this month in Colombo to discuss renewal of management contract and an increase in the stake.
SriLankan is managed by Emirates airline, which has a 10-year contract up to 2008. The airline was previously known until 1999 as Air Lanka, when it was re-branded as SriLankan Airlines. Fazeel refused to reveal the specific percentage hike being discussed between the two parties, however, he mentioned that Emirates would be a majority stakeholder if outcome of the on-going discussions prove positive.
An Emirates spokeswoman, however, said: "Discussions with various SriLankan stakeholders are still pending." She refused to comment any further. Presently, the government of Sri Lanka holds majority stake of 51.05 per cent in the airline, while Emirates and employees hold 43.63 and 5.32 per cent, respectively. Operating a fleet of 18 aircraft, SriLankan plans to expand its fleet strength by adding two aircraft every year, doubling its fleet strength in the next 7-8 years.
The carrier now operates all Airbus aircraft, including 14 wide-bodied A320, A340, two Turbo Otter as air taxis and two Antonov freighters. The airline, which operates 11 flights a week to the UAE - made an after-tax profit of Dhs67.7 million in fiscal year 2005-06. "Following a comprehensive six-month study being conducted, we'll place more Airbus orders. We'll order only Airbus aircraft because our pilots are trained on Airbus," Fazeel added.
He said the carrier is not considering orders for delayed Airbus A380; but would rather opt for other Airbus aircraft. The airline is focusing on expanding routes to other Middle Eastern cities in Saudi Arabia, Qatar and Bahrain. SriLankan enjoyed remarkable seat occupancy rate of 88 per cent from April 2006 to March 2007.
(Source www.dpmnewsagency.com)
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