SriLankan Airlines and Mihin Lanka likely to merge?
SriLankan Airlines and Mihin Lanka are considering a merger, the Muscat Daily news agency reported.
The Sri Lankan government is considering the merger as part of a strategy to cut costs.
According to the reports, Mihin Lanka will be taken over around October and its aircraft re-branded as SriLankan Airlines and its routes marketed at a different price scale.
Speaking to Muscat Daily, an official from Mihin Lanka in Oman, said, “We are waiting for the decision to be implemented by the senior management. We will be continuing operations and travellers who have booked earlier will not be affected. In case the merger happens, passengers in Oman will be automatically transferred to SriLankan Airlines.”
Mihin Lanka commenced operations on the Muscat-Colombo route last year. It operates flights from its hub at Bandaranaike International Airport to a number of cities in the Indian subcontinent, the Gulf, Southeast Asia and Eastern Africa.
It also has a codeshare agreement with SriLankan Airlines on many routes.
(Muscat Daily)
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Sri lankan airline seriously need to think about the cost reductions. Rather than wrong turns.
There are unnecessary expenditures, which are causing havoc to the airline.
Some are like, luxurious living styles for certain country managers. Expenses on entertainments.
If you really check some managers are living in very expensive condominiums, which cost around 2000-3000 dollars in some Asian countries. Also providing expenses to families and their children educations. All of those expenses are pilling up to the airline budget. Government request them to manage with the minimum, but they get the top qualities.
I don’t think there will be a certain control mechanism available to check the living style at least 2-3 years time in any countries. Or the entertainment facilities are checked.
Before selling out or merging, better look for cost reduction methods. Not seen this has been done or attempted.
Identify the capabilities of certain country managers, find out they are bringing businesses at least for what they spend.
Also some countries are having GSA (ground service agents), find out how they help to coup with the business. Are they really worth. Or they are just staying as middlemen and earn using airline flag.
Someone really should think, rather than selling this out.
OMG DOUBLE LOSS for the tax payers