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Grounded Mihin gropes to take off
Sunday, 18 May 2008 - 1:50 PM SL Time
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The grounding of the hastily launched budget airline Mihin Lanka last month, with more than Rs. 3000 million in debt is apparently not the end of the road, as the carrier is now actively attempting to resume flights with a fresh infusion of cash from the Treasury.
The Sunday Times reliably learns that the Treasury has now called for a fresh business plan from the carrier to infuse more cash to it. According to informed aviation sources, instead of sending all its employees (more than 175) on no-pay leave pending the possible formulation of a proper rescue package, the carrier is now busy trying to recruit pilots, engineers and other relevant technical staff to fly two old aircraft that it plans to take on dry lease from a European firm.
The fledgling carrier is also said to be saddled with heavy overheads with some managers mobile phone bills alone coming to more than Rs.100,000 a month and all managers given company vehicles with drivers and fuel.
Sources warned that at a time when even established airlines like the national carrier SriLankan were finding it difficult to retain specialized staff like pilots and engineers, it was questionable why Mihin wanted to bring down two ageing aircraft from Europe without having recruited a single specialist personnel.
Mihin placed a quarter page advertisement in a State newspaper last week calling for experienced aircraft captains, first officers and maintenance engineers after having already negotiated to bring down two Airbus A-320 aircraft currently tarmacked at Chateaurouk-Delois, France.
This is worse than the folly it committed in hastily importing two brand new buses and used ground handling equipment at a monthly lease rental of more than US $223,000. All the items are idling at the airport as the airport now provides easy access between aircraft and terminals by way of way-bridges, an airline source said.
Mihin Lanka has informed the Government that the two aircraft under negotiation bear serial numbers MSN 87 and MSN 88 and had first flown on August 8, 1989 and November 21, 1989. They were initially owned by Royal Jordanian and later both had been sold to LTE Airlines of Spain on December 21, 2006 with new registrations bearing EC-KID and EC-KFM.
There is fear that by bringing in two ageing aircraft in violation of Civil Aviation Authority restriction on registering aircraft that are more than 15 years old, the country is risking its enviable safety record. The Civil Aviation Authority is already accused of turning a blind eye to several violations by Mihin, including it openly flouting the business plan originally filed with the CAA.
CAA Director General H.M.C. Nimalsiri had found fault with the present Head of Operations at Mihin, Athula Dissanayake, in April 2006 for performing irregular activities to help a foreign pilot to pass a reactivation course, when he was earlier the Manager Technical Flight Operations and Special Projects at SriLankan.
Earlier Mihin Lanka had operated flights with aircraft taken on wet lease at about US$ 900,000 a month, but now it is hoped to charter aircraft on dry lease at almost half the cost.
However, sources said even if recruitment of the required pilots and the engineers was done, there was so much to be done like having your own spares, preparing your own manuals to suit the aircraft and even having to put the pilots through simulator tests before they are allowed to fly the aircraft.
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SenaM
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 18 May 2008 20:34:27 GMT Report for Abuse
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If there is such 'desperate' need for having a 'budget airline' .. the President could get the Sri Lanka Air Force to 'supply' this 'requirement'.
If I am not mistaken, SLAF still has an HS 748 / AVRO a'cft .. which could be refurbished, and put back into operation (40- seater). They have also a number of AN-32Bs and two (02) C-130s. One of these has been 'on ground' since the time of its purchase from the Royal Air Force .. however, with a special effort I have no doubt it could be re-fitted/repaired and brought back to 'servicieable' condition. (AN-32Bs ae are 50-60 seaters, and the C-130 a 100-seater. These are not equipped currently, with toilet facilities, galleys etc .. as for regular passenger carrying. However, it may be feasible to convert the 'grounded' C-130 for the 'passenger carrying role' - as it is re-fitted and brought-up to 'flying' status).
SLAF engineers, and pilots 'know' their aircraft .. and will do all that is expected of them. They may need to be 'teamed-up' with a 'sales and finance management' group .. to make this 'budget airline' work.
Suggest, that we also drop the 'Mihin-Air' appellation. (It does not redound too well on the President, in any case .. this is supposed to be a 'budget' operation, not a prestigious air-line. The name was 'coined' no doubt by the former CEO .. with the intention of getting Presidential patronage .. a reprehensible, mendacious act on his part. Can see no place for him in a re- constituted 'budget airline' .. if it is to be run 'lean', generating a modest profit to the national Treasury).
(May be useful to consider briefly, the example provided us by First Air of Canada (North Western Territory). It was 'set up' with funds 'given' by the Canadian Govt as a 'settlement' to the Innuit people, and commenced operations with HS-748s .. some years ago. They are still in use, and First Air currently, is one of the major operators of this 'old' but proven short-haul aircraft. First Air has gone on to 'induct' other aircraft types, and now has on its strength Boeing 737s, B-727s, ATR-42s and C-130s. It is a 'modest' operation for Canada .. but an example of a very well run '2nd rung' air-line, providing excellent service to the Canadian public, and generating healthy profits to its share-holders .. largely the Innuit people of Northern Quebec, as I understand).
Edited By - SenaM - 19 May 2008 09:35:42 GMT |
kiora
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 18 May 2008 23:57:27 GMT Report for Abuse
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| Good idea refurbishing old air crafts more opportunity's for back handers for the favored few. |
Damed
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 19 May 2008 00:06:08 GMT Report for Abuse
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It shows the depth of some lankan idiots,who misuse public funds.
very valued vision of a budget airliner thrown into a mess.
Presidential patronage../ ruined Air Lanka and Now Mihin Air. |
gchula99
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 19 May 2008 00:28:57 GMT Report for Abuse
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There are many serviceable jets in Air Force.C-130 Hercules -2, An-32 Cline -7, Harbin Y-12 -7.
non of these air craft are suitable for civilian passenger transport under normal conditions.
Mihin Air needs a extremely intelligent boss with a efficient and patriotic crew.
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freedom1
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 19 May 2008 16:14:52 GMT Report for Abuse
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| Mihin has no chance never ever and also SriLankan is aiming for a crash with service quality getting reduced week by week. |
SenaM
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20 May 2008 00:30:01 GMT Report for Abuse
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Freedom1
SriLankan is aiming for a crash with service quality getting reduced week by week.
Your comments are generally aimed at producing 'alarm & despondency' .. I have noted. So, how do you substantiate your comment ?
On the other hand, I was hearing from a passenger returning to Sri Lanka .. on a flight from London to Colombo .. that he thought 'quality of food & service had improved'. He was highly praising 'in-flight services' on this particular flight (this was only 2 weeks ago ..).
True, Peter Hill may not be there any-more as 'Head' of Sri Lankan Airways. But I believe we are coping well, without his management 'wizardry'. And even if Emirates is doing its best to make things difficult for us, by attracting, and 'drawing away' our experienced pilots and engineers, I believe we'll 'stay on course' .. continue to do as well as we've done in the past.
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Damed
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20 May 2008 00:41:36 GMT Report for Abuse
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Sri Lankans can manged there Airliners if find proper Management,as in the past.
As said,We have plenty of potential and experienced hands to handle our interests.
Exactly correct I did fly with Srilankan two weeks before thrice,have seen changes to wards Lankan interests which is acceptable.
Lankans should be proud to take care of there own Air Liner. |
Vishnu
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20 May 2008 06:04:22 GMT Report for Abuse
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Sena,
Don't even bother replying. Freedom and his sort has this particular mentality of thinking whatever proper is only done by foreigners. Although they think it is a character of superiority, it actually is a symptom of inferiority complex.
No country has progressed with people of such mentality. |
freedom1
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20 May 2008 10:54:22 GMT Report for Abuse
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SenaM,
Mihin Lanka had not even been able to create a website where online booking did function and they where exploiting the services and sources of Sri Lankan Airlines.
The best SLA staff is meanwhile with Emirates and some Indian Airlines and with loads of flights with them to Europe and Asian destinations one does get an impression of developments.
I wish they were able to survive, but even Emirates had not been able to make it a profitable airline.
I have no idea, on what you are building your optimism. |
freedom1
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20 May 2008 10:59:19 GMT Report for Abuse
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Vishnu,
look at the state that your country is in with 30% inflation and 100% depending upon foreign donations and loans. Look at Thailand and other Asian neighbours to get some ideas.
At this time SL can't even keep a bunch of train engines in a reliable state. |
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