Rumour: Emirates to Dispose Off SriLankan

[Mohd Azizul Ramli 2]

I was told by a friend who has close relationship with insiders in Emirates that the Dubai flag carrier is in the process to dispose off its 43% stake in SriLankan Airlines, the flag carrier of Sri Lanka.

 

The reason being? Because Emirates wants to 'revenge' on the President of Sri Lanka, Mahinda Rajapaksa's decision to revoked the stay and working visas for SriLankan Airlines' CEO, Mr. Peter Hill, who is also an executive of Emirates.

 

Why did the President revoked the CEO's visas? Because SriLankan Airlines did not followed the President's personal request to withdrew several PAYING premium class passengers on a flight from LHR to CMB to make way for him and his entourage.

 

If it proves true, do you think the decision is business oriented?

 

Who were to be blamed in this case, SriLankan Airline or the President of Sri Lanka? Does a head of a state, i.e. the President of Sri Lanka has abused his position for 'personal' interest OR SriLankan Airline is not 'sensitive and patriotic' enough to dismiss a few of its PAYING premium class passengers to make way for the President?

 

Will SriLankan Airline prospers without the backings Emirates has provided all these years?

[Imran K. 0]

um...'REVENGE' ?

 

 

I thought Emirates was the one THROWN OUT of the country? thus their 43% is relatively worthless at this point?

 

at this point...i doubt that 43% would fetch a kings ransom...

 

maybe a rempits ransom

[Mushrif A 3]

No a rumour. It is is true. EK's management contract will expire this April.

 

Work permit of UL's CEO, Peter Hill, an EK nominee was recently withdrawn.

 

He refused to give 35 seats to the prez and entourage on flight LHR-CMB. Flight was already overbooked. Prez had to travel back for an emergency parliament session. CEO offered about 4-5 seats in biz but not accepted.

 

EK has been looking for a buyer for its UL stake for more than 12 mths, and/or wasn't sure to renew its management contract.

 

What happened to P.Hill was the proverbial last straw that broke the camel's back.

 

[Imran K. 0]

im guessing the sale of their stake will generate much needed capital....

 

 

i smell an extra A380 being ordered...

[Mohd Azizul Ramli 2]

um...'REVENGE' ?

I thought Emirates was the one THROWN OUT of the country? thus their 43% is relatively worthless at this point?

 

at this point...i doubt that 43% would fetch a kings ransom...

 

maybe a rempits ransom

How can an entity being 'thrown out' from its investment even if it is being outplaced physically? 43% stake become worthless? What kind of barbaric laws used is that? Emirates is still the owner of the 43% stake no matter how far the President of Sri Lanka thrown them out. That did not forfeit their monetary possesion over SriLankan Airline by all means what so ever.

 

And mind you, 43.6% stake is not 'little'. That's almost form a majority and with that amount of stake, SriLankan is a 'subsidiary' of Emirates, not just an 'associate company'.

 

I think better you channel all your nonsenses in the Observation Hill forum, where there's always 'syiok' and 'wakakaka' to accompany you.

[Mushrif A 3]

I think better you channel all your nonsenses in the Observation Hill forum, where there's always 'syiok' and 'wakakaka' to accompany you.

 

 

There's a certain calmness in the air...before the storm hits.

[KC Sim 2]

In posting in such a forum, it is perhaps incumbent upon the person posting to state unambiguously if something is fact, rumour or one's own opinion.

 

Emirates' 43.6% stake in SriLankan Airlines is in no danger of becoming worthless just because of the spat between the Sri Lankan government and Mr Peter Hill. This episode just soured the relations between Emirates and Sri Lanka - both the government and the airline.

 

I am not sure how Emirates could find a buyer for its stake soon. What is interesting is what happens after Emirates' management contract expires?

 

- What happens to the frequent flyer programme Skymiles - will SriLankan Airlines have to create its own from scratch?

- What will SriLankan Airlines do to its route structure - remembering that it has given up operating to some European destinations at the insistence of Emirates

- Is it necessary for SriLankan Airlines to attempt to be in some form of alliances?

- The present SriLankan Airlines livery was linked to Emirates - actually, there is a fair bit of resemblence between the two liveries. Will we see a change there?

- Will Emirates - in an anger fit - pull out completely from Sri Lanka? if that happens, Sri Lanka's tourism will suffer dearly.

 

KC Sim

[Keith T 2]

http://www.theaustralian.news.com.au/story...6-23349,00.html

 

Emirates wants to sell SriLankan stake

 

January 07, 2008

 

EMIRATES Airlines has announced it is willing to sell all or part of its near 44 per cent stake in Sri Lanka's national carrier after terminating its management contract with the carrier.

 

“We would be interested in selling part or all of it (...) if people would be interested in buying” after March, when its 10-year management contract runs out, Emirates president Tim Clark said in Dubai.

 

He valued Emirates' stake in SriLankan Airlines at $US150 million ($172 million).

 

“Emirates will retain its 43.6 percent equity in the company for the time-being, and continue to have a board presence,” he said.

 

Mr Clark's statement came amid worsening relations between Emirates Airlines and Colombo.

 

The Dubai-based airline announced earlier in a statement it will cease to run SriLankan Airlines from April 1, with the imminent ending of a decade-long contract.

 

Talks between the Sri Lankan government and Emirates over the past two years failed to clinch a deal on the airline continuing to manage the national carrier.

 

The government last month withdrew the work permit of the Emirates-appointed chief executive of SriLankan Airlines, Peter Hill, as he failed to “look after the interests of the majority shareholder.”

 

But Emirates refused to remove Mr Hill, and instead moved him to Dubai to manage the Colombo-based airline till the management contract runs out.

 

SriLankan Airlines entered into the partnership with Emirates in 1998, with the Colombo government retaining a majority stake.

 

There was no immediate reaction to Emirates' announcement from the Sri Lankan government.

 

However, Aviation Minister Chamal Rajapakse was quoted in local media saying the government would not extend the management deal.

 

The decade-long tie-up with Emirates, which has a strong reputation for good service, has vastly improved the catering, punctuality and the overall profile of SriLankan Airlines, analysts say.

 

But the SriLankan Airlines Group posted a post-tax profit of 862.18 million Sri Lankan rupees ($8.9 million) for fiscal 2007, down 50 per cent from the previous year.

 

In recent interviews Mr Hill has said the escalation in Sri Lanka's ethnic separatist conflict was partially responsible for the profit fall as it had deterred foreign tourists.

 

AFP

Edited January 8, 2008 by Keith T

[Walter Sim 1]

EDITED

Edited January 8, 2008 by Walter Sim

[BC Tam 2]

Quick Datuk IJ, hop over to Colombo and offer MH's management expertise to UL

Then the highly rated, nearly unanimously approved sand-wic snackboxes can be inflicted upon poor unsuspecting souls of the region as well

[Izanee 0]

sounds like a good idea. if we're going down, bring everyone down with us!

[Mohd Azizul Ramli 2]

Quick Datuk IJ, hop over to Colombo and offer MH's management expertise to UL

Then the highly rated, nearly unanimously approved sand-wic snackboxes can be inflicted upon poor unsuspecting souls of the region as well

Is SQ excited about this?

[KK Lee 5]

Is SQ excited about this?

 

With a irrational president, doubt major airline will take the political risk.

 

Sri Lankan is likely to go independent. With so much political interference, UL may go down the same path as MH.

 

[Pieter C. 5]

- Will Emirates - in an anger fit - pull out completely from Sri Lanka? if that happens, Sri Lanka's tourism will suffer dearly.

 

KC Sim

 

Not only tourism, but the airline especially: I think, they will go down the drain without a BIG injection of money from the SL government...

 

[BC Tam 2]

..... in the Observation Hill forum, where there's always 'syiok' and 'wakakaka' to accompany you.

Wah, syiok-lah this sandiwara playing out between Sri Lankan govt and EK.

Aiyak, inappropriate expression used, sorri-ah !

wakakaka

 

[Izanee 0]

it looks like its not just our gahmen that messes up!

[DavidC 0]

SQ most probably wont even twicth an eyebrow with all the happenings in UL - they don't play 3rd world standards and businesses. You really have to take ur hats off to those fellas in the red dot beneath the peninsular, they have made it good. Yeah, most probably IJ and MH may comtemplating on offering their "expertise" and lead the 3rd world countries and 3rd world business out from their doldrums as Malaysia Bolehism is there to rescue those pitiful ones! Hence, Malaysia to the rescue - third WORLD CLASS!!On the other hand, I had the opportunity to fly UL 2 months ago to CMB and return - I must say, bellow standard and really horrible but for the ticket rate that you pay - OK lahhh! as for service, don't expect too much but expect to slighted as the FAs are more interested to serve certain class of people. I can't even get them to give me water but have to resort to enlisting another "classy" pax to get the water that I want! Nightmare! Wrote them a loooooong letter in a polite manner but no reply whatsoever. Just wonder how they got that award from Skytrax (Skytash).DavidCP/S File my comments to skytrax on my experience with UL but was never published!!!!! a whole load of crapSQ most probably wont even twicth an eyebrow with all the happenings in UL - they don't play 3rd world standards and businesses. You really have to take ur hats off to those fellas in the red dot beneath the peninsular, they have made it good. Yeah, most probably IJ and MH may comtemplating on offering their "expertise" and lead the 3rd world countries and 3rd world business out from their doldrums as Malaysia Bolehism is there to rescue those pitiful ones! Hence, Malaysia to the rescue - third WORLD CLASS!!On the other hand, I had the opportunity to fly UL 2 months ago to CMB and return - I must say, bellow standard and really horrible but for the ticket rate that you pay - OK lahhh! as for service, don't expect too much but expect to slighted as the FAs are more interested to serve certain class of people. I can't even get them to give me water but have to resort to enlisting another "classy" pax to get the water that I want! Nightmare! Wrote them a loooooong letter in a polite manner but no reply whatsoever. Just wonder how they got that award from Skytrax (Skytrash).DavidCP/S File my comments to skytrax on my experience with UL but was never published!!!!! a whole load of crap

[BC Tam 2]

Errr ..... what happened to your post ?!

Edited January 9, 2008 by BC Tam

[Imran K. 0]

wow...i thought we had the makings of another 'commando' here...

 

but i guess it couldve been a copy/paste error.

 

close call

[DavidC 0]

errr... sori guys, system hang mid way while sending .... have to resend, b y the time, double posting came up! ooops

[Pieter C. 5]

Jet, Kingfisher Eye SriLankan Air Stake

 

January 23, 2008

Indian carriers Jet Airways and Kingfisher Airlines are eyeing the stake held by Emirates in SriLankan Airlines, the Economic Times said, citing unnamed industry officials.

 

Emirates, the largest Middle East airline, said earlier this month it was interested in selling its 43.6 percent stake in SriLankan Airlines and wanted around USD$150 million for it.

 

The Sri Lankan government already owns 51 percent of the airline and has said it may buy Emirates' stake. The management of SriLankan Airlines will revert to the government on April 1.

 

"For Indian carriers, a major attraction in acquiring a stake is the booming business from India to Colombo with over 100 flights a week," the paper said.

 

A spokeswoman for Jet declined comment, while a spokesman.

 

Jet Airways already operates flights to Colombo and is boosting its international operations to counter growing competition in the domestic market.

 

Jet acquired India's Air Sahara last year. It has approached British airline bmi's majority shareholder about the sale of his stake, the Sunday Telegraph reported at the weekend.

 

Kingfisher is controlled by India's biggest alcoholic beverage maker, the UB Group. It is merging with Deccan Aviation and is scheduled to start flying overseas this year.

 

(Reuters)

 

[Mohd Azizul Ramli 2]

Great news for UL, because they will be in good hand with either Jet or Kingfisher.

 

I am quite surprise with the development of aviation in India. Since my employer has a subsidiary in India, I used to hear a lot of not so nice, hanky panky type of bureucracy/business ethics matters there.

 

All these mergers which had taken place proved that they are indeed gearing up towards global competition. Air India and Indian Airlines have merged and will be joining the 'great' Star Alliance soon.

 

Jet and Kingfisher have proven to be succesfully differentiate their product offerings and branding. Jet is being hunted by both SkyTeam and OneWorld to be part of their alliances while Kingfisher, although still waiting for its 5 year regulatory period to end before they can pursue beyond India, has been making superb preparation by establishing itself as the 6th Skytrax's 5 Star carrier recently and more, ordered 5 A380s for their soon to be launched overseas operation.

[Terence Ong 0]

This was announced two days ago, but anyway...

 

Emirates quits sharing routes with Sri Lanka's national carrier

 

COLOMBO : Dubai's Emirates Airlines said on Sunday it would stop sharing routes with Sri Lanka's national carrier when its decade-long management contract expires this month.

 

"Code share arrangements between Emirates and SriLankan Airlines will cease from 31st March 2008 with the expiry of the management agreement," Emirates said in a statement.

 

The decision follows worsening relations between Emirates Airlines and Colombo, with talks between both sides collapsing after nearly two years of negotiations over renewing the contract.

 

In December, the government withdrew the work permit of the Emirates-appointed chief executive of SriLankan Airlines, Peter Hill, because he failed to "look after the interests of the majority shareholder."

 

However, the Dubai-based carrier said it will retain its near 44 percent stake and continue to have a board presence.

 

Emirates president Tim Clarke had told AFP in January that it was willing to sell all or part of its equity stake, valuing the 43.6 percent parcel at 150 million dollars.

 

Emirates will continue to serve Sri Lanka with 17 weekly flights to Colombo, connecting the country's travellers to 100 global destinations via Dubai. The flights will be operated using Emirates' aircraft, the statement said on Sunday.

 

In response, SriLankan Airlines said it was working to develop new destinations and tourist markets to add to its current schedule of 54 destinations in 28 countries.

 

Starting April, the government, which controls 51.05 percent of SriLankan Airlines, will manage the flag carrier, the statement said but did not give details of what would happen if they plan to buyout Emirates' stake. - AFP/de

 

Source: CNA/AFP

 

Looks like they really want to be on their own now.

 

[kandiah k 0]

It is very clear that UL will surely go downhill with the departure of EK. UL has always been a messed up airline prior to this, something like BG but their service has always been something even other airlines talk about. If and unless a foregin airline co-runs UL, I see only disasters in terms of mismanagement, inefficiency and many more along those lines.

 

I support JET and KINGFISHER in their bid to buy a stake in UL in order to sustain UL's growth and standards. UL has been well groomed by EK and I am sure UL can survive with another airline buying a stake or if the pigs start flying, a local who can run the show as well as EK. Just my thoughts. Feels the same in my territory too.

 

 

 

[KC Sim 2]

It is very clear that UL will surely go downhill with the departure of EK. UL has always been a messed up airline prior to this, something like BG but their service has always been something even other airlines talk about. If and unless a foregin airline co-runs UL, I see only disasters in terms of mismanagement, inefficiency and many more along those lines.

 

I support JET and KINGFISHER in their bid to buy a stake in UL in order to sustain UL's growth and standards. UL has been well groomed by EK and I am sure UL can survive with another airline buying a stake or if the pigs start flying, a local who can run the show as well as EK. Just my thoughts. Feels the same in my territory too.

 

I frankly think that unless one is an insider or is familiar with the people managing the airline, it is unfair to call the airline a messed-up entity likened to Biman. In my previous work, I have closely communicated with a good number of top and middle-management representatives of SriLankan Airlines . . . and invariably, I came away with the strong impression that they are a highly intelligent and technically proficient people. There is a lot to be said about Emirates' involvement with SriLankan Airlines and you can be sure that not everyone is thrilled to bits about extending the decade-long relationship. Suffice to say that Emirates has played a key role in improving the performance of SriLankan Airlines but it has not been charity on Emirates' part. From my understanding, the same people that I have been very impressed with continue to be holding the reins in their respective departments.

 

For as long as politics does not come in the way, I personally see SriLankan Airlines moving ahead to carve for itself a good reputation. The service onboard is indeed very good - I have flown with them several times and without exception, service is extremely warm, friendly and very spontaneous. For an airline that has been through so much, SriLankan Airlines is indeed a survivor and a good one at that.

 

I hope that SriLankan Airlines restores Zurich - one of its most important destination before it was "convinced" to drop that in favour of codeshared services with Emirates - and perhaps other destinations in Europe.

 

KC Sim