Mihin Lanka yesterday denied that it was facing financial difficulties over the purchase of aviation fuel from the Ceylon Petroleum Corporation. `It is a common practice to have fluctuating balances in terms of fuel purchases done. During the last two weeks Mihin Lanka has expanded our route network, from seven frequencies a week to 30 frequencies a week.
It is obvious that our consumption of aviation fuel has increased and we are in the process of completing documentation with CPC to enhance our Bank guarantees with them.
`Nevertheless weekly payments are being made as per the commercial terms agreed with CPC,` Mihin Lanka CEO Sajin Vaas Gunawardena said.
The success of Mihin Lanka speaks for it self when looking at the very high load factors that is maintained on our flights. Therefore, this campaign is only aimed at bringing disrepute to the successful operation that we are conducting. Our fuel purchases from the CPC in Sri Lanka is only but a fragment of our total consumption from other countries where we purchase aviation fuel on a daily basis when we fly, Gunawardena added.
Mihin Lanka`s envisaged expansion of the route structure would increase the frequencies by another 10 per week to 40, he said.