Emirates to start deal renewal talks with SriLankan |
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Dubai: Two top executives of EmiratesEmirates
are due in Colombo on Wednesday to negotiate with government officials the renewal of the Dubai-based airline's management contract for SriLankan - the country's flag carrier, a Colombo newspaper reported. The talks have dragged on for about 18 months but became complicated some days ago when Colombo revoked the work permit of SriLankan airline's British chief executive officer Peter Hill, an EmiratesEmirates man, in a row over seats for President Mahinda Rajapakse and his entourage on a London-Colombo flight.
Hill, 62, who is married to a Sri Lankan, left for Dubai on Thursday, a day before the government deadline, Sri Lanka's Sunday Times newspaper said on its website on Sunday.
It said EmiratesEmirates has served a notice on the Sri Lankan government containing "demands," which the paper did not specify.
EmiratesEmirates has said Hill will continue to head SriLankan until the management contract expires in March 2008.
EmiratesEmirates President Tim Clark accompanied by Group Services and Dnata President Gary Chapman "are due in Colombo on Wednesday for what some aviation sources term as make-or-break talks with the Sri Lankan government on the renewal of its existing 10-year management contract," paper said.
"We cannot discuss details of the contract nor of the negotiations," an EmiratesEmirates spokesperson said when Gulf News sought a response.
EmiratesEmirates has a 43.6 per cent stake in SriLankan and fully manages the airline, while the Sri Lanka government owns 51 per cent.
Unnamed aviation experts quoted by the paper suggested that the EmiratesEmirates-Lanka agreement is "lopsided."
One clause in the management contract is said to be that if the agreement is not renewed and the Sri Lankan government does not buy back the stake held by EmiratesEmirates at the end of March, the Dubai carrier "automatically gets to manage the airline for a further five years."
Gulf News asked EmiratesEmirates to respond specifically to this point but did not get a reply.
By Shakir Husain
© Gulf News 2007
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I see a good side of this deals end. Just like Thilak Nilaveera said Emirates had a passage opened to some destinations, which it could not get or did not get through Air Lanka deal. Also Emirates grabbed a vast number of travellers (including myself) in their sole control over this deal. This deal really had concerns over its nature and the decision makers rather than its stakeholders. An Ex Well Corrupted Politician offered the deal on a tray to Emirates and she was given a fortune for her "Support" for the deal.
At the same time Emirates started managing "Air Lanka" by changing its long gained name, absorbed its well experienced staff, well managed & profited routes. Now Emirates might not see anything else to absorb from Srilnkan so have the decision made from the Peter Hill issue.
Sri Lanka should not deter making a new plan and get the "National Carrier" flying high once again. There will be more "Sri Lankan" resources to put their efforts to achieve the target ! [Report Abuse | Email to a Friend | Reply to this Comment]
Some may have the opinion that it is Emirates who is taking the lion's share of advantages from this Emirates-Sri Lankan deal and curse Emirates for abusing poor hard working Sri Lankans.
However one must always remember that without this deal Sri Lankan could never have achieved what it has achieved today in fact Air Lanka 's operations ( the predecessor of Sri Lankan) were almost coming to a halt when this deal was agreed giving a new life to Sri Lanka's aviation industry. And also the fact that there are other nations whose flag carriers would willingly jump to grab such a deal with a reputable airline such as the Emirates.
Now that there is a low cost carrier called Mihin lanka, rumored to have interests of leading Sri Lankan politicians, it looks like they care less if Sri Lankan will continue to fly with this management contract. I feel this is what is happening.
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Emirates should look at their own practice to bribe Sri Lankan politicians to obtain this lucrative deal, which gave access to international air ports, Emirate had no access.Emirates has made millions of dollars profit from this deal, which is glaringly highlighted in the bribe given to a politician in Sri Lanka in ratifying this deal.
Now Emirates thakes a "holier than thou" attitude after resorting to most vile business practises. Thoe owner of Emirates trumpets his wealth and power at the expense of prpfits gained from poor hard working Sri Lankan travelling public.Look at your own self before you come with a sledge hammer to crack a coconut. [Report Abuse | Email to a Friend | Reply to this Comment]