Sri Lanka will reconsider the sale of its national carrier Airlanka to Emirates airlines. The island, moving towards an open sky policy, also announced plans to review the 1996 ban imposed on domestic flying. Airlanka’s privatization in 1998 gave Emirates total management of the airline for 10 years.
Emirates bought 40 percent of Airlanka for $70 million and received concessions on fuel and the right to retain national carrier Status, giving it privileges under bilateral air service agreements. Emirates changed the name of the airline to Sri Lankan, shifting most of its administrative operation to Dubai.
Due to fear of monopolization, Sri Lankan Prime Minister Ranil Wickremesinghe stated he would not honor commitments made by the former administration on the sale of Airlanka. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
