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First AirAsia Airlines to be established in Sri Lanka
Malaysia's LCC AirAsia is working to establish a low cost air company in Sri Lanka and last weeks it pitched with a high-level Sri Lankan formal review group. According to a Sunday Times Sunday article, a AirAsia panel presented the suggestion to the Cabinet Economic Management Board (CCEM) on Wednesday, led by PM Ranil Wickremesinghe, who recommended 51 per cent to the government of Sri Lanka and 49 per cert to the Malaysia Airlines.
This low-cost company currently flies from Kuala Lumpur to Colombo every day. Industrial analysts who refused to be called said that the entrance of a new airline that will compete with the severe casualties SriLankan Airlines is going to cause a big bump in the nation's airlines. SriLankan Airlines' 2016-2107 financial statement shows that the airline's cumulative loss was nearly $200 million, up from $85 million a year earlier.
In Europe, the carrier has reduced its flights and concentrated primarily on Asia. According to the press release, AirAsia's one-hour show was to deploy five planes in the first year and 25 in five years. Sri Lanka Airlines officers present at the time of the disclosure were known to have objected to the proposed amendment.
For two years now, the domestic airline has been looking unsuccessfully for a Managment Colum Investmentsspartner. Talks were conducted with Emirates, which previously acted as Sri Lanka's senior manager, and Qatar Airways. According to industry experts, AirAsia's accession would tempt more Sri Lanka to go abroad at low prices and attract tourist with shoelace budget from all over Asia.
Fifteen years ago, the executive manager of a flight agency in a country outside of Germany said that the federal administration had been seeking tenders for the operation of a second carrier and that at least five tenders had been made, but no decision had been taken. "Ultimately, the Sri Lankan markets are too small for two airlines," he said.
Mihin Air, a SriLankan Airlines affiliate, also closed recently and was unable to operate.