{"id":44132,"date":"2023-09-08T12:15:20","date_gmt":"2023-09-08T06:45:20","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=44132"},"modified":"2024-07-04T18:49:59","modified_gmt":"2024-07-04T13:19:59","slug":"srilankan-airlines-sale-tata-adani-and-emirates-are-buyers","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2023\/09\/08\/srilankan-airlines-sale-tata-adani-and-emirates-are-buyers\/","title":{"rendered":"Srilankan Airlines Sale: Tata, Adani, and Emirates are Potential Buyers"},"content":{"rendered":"\n

DELHI-<\/strong> The Sri Lankan government is actively considering the privatization of SriLankan Airlines (UL)<\/a> and is in discussions with multiple private entities and airlines.<\/p>\n\n\n\n

This information comes from a report by Ch-aviation<\/em>. Notable names among the potential investors include Emirates (EK)<\/a>, Tata Sons, and the Adani Group.<\/p>\n\n\n\n

\"The
Photo: By Eluveitie – Own work, CC BY-SA 3.0, https:\/\/commons.wikimedia.org\/w\/index.php?curid=11406396<\/figcaption><\/figure>\n\n\n\n

SriLankan Airlines on Sale<\/h2>\n\n\n\n

Tata Group, the parent company overseeing Air India (AI)<\/a>, Air India Express (IX), Vistara (UK)<\/a>, and AirAsia India (I5), has been a longstanding contender for potential investment in Sri Lanka’s state-owned airline. <\/p>\n\n\n\n

Conversely, the Adani Group’s involvement is a more recent development. During Sri Lankan President Ranil Wickremesinghe’s two-day visit to India in July, Group chairman Gautam Adani engaged in discussions, primarily focusing on multiple projects within Sri Lanka. <\/p>\n\n\n\n

Although the meeting covered various initiatives, there was no mention of the airline at that time.<\/p>\n\n\n\n

Emirates has a historical connection with SriLankan Airlines dating back to 1998 when it acquired a 43.63 percent stake in the carrier and a ten-year management concession. <\/p>\n\n\n\n

However, due to a falling out between Emirates-appointed executives and the Sri Lankan government, Emirates opted not to renew its contract in 2008. <\/p>\n\n\n\n

Consequently, the airline divested its shares to Colombo in 2010 and endeavors to secure a strategic investor since then have proven unsuccessful.<\/p>\n\n\n\n

\"The
Photo: SriLankan Airlines<\/figcaption><\/figure>\n\n\n\n

Strong Indian Expansion<\/h2>\n\n\n\n

Veeraperumal Ravindran, who serves as the regional manager for India, Bangladesh, and Nepal for the airline, disclosed this during an interview with The New Indian Express<\/em>. The aim of this move is to enhance the airline’s presence in the Indian state of Kerala.<\/p>\n\n\n\n

SriLankan Airlines is planning to expand its flight services between Colombo and Thiruvananthapuram during the upcoming winter schedule, increasing the frequency from six to seven flights per week. <\/p>\n\n\n\n

Additionally, the airline intends to maintain its current frequency of ten flights per week to Kochi International Airport and is exploring the possibility of introducing new flight routes to Kozhikode due to available aircraft resources. <\/p>\n\n\n\n

Veeraperumal Ravindran, who made these statements, pointed out a significant uptick in traffic from India to Sri Lanka over the past seven months, indicating a positive trend for the airline as Sri Lanka gradually returns to normalcy. <\/p>\n\n\n\n

However, Ravindran did not provide any further details regarding the ongoing privatization discussions.<\/p>\n\n\n\n

Sri Lanka’s commitment to privatize the financially struggling SriLankan Airlines, as promised by former Prime Minister Wickremesinghe in May 2022, aims to transfer the responsibility of restructuring the airline, including addressing its substantial legacy debt servicing costs, to private investors instead of relying on state finances, as reported. <\/p>\n\n\n\n

The initial focus will be on reshaping the airline’s financial structure, followed by the eventual sale of the airline. In early July, Sri Lanka’s Civil Aviation Minister, Nimal Siripala, emphasized the goal of completing the airline’s restructuring within six months.<\/p>\n\n\n\n

Stay tuned with us. Further, follow us on social media for the latest updates.<\/p>\n\n\n\n

Join us on Telegram Group <\/a>for the Latest Aviation Updates. Subsequently, follow us on Google News<\/a>.<\/p>\n\n\n\n

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SriLankan Airlines Not Going for Sale Now but Restructuring<\/a><\/blockquote>