Conflicting views on SriLankan Airlines’ intended partners

More than eight months after the government called for bids to resurrect the national carrier SriLankan Airlines, the authorities are groping in the dark in the bid to find a management or equity partner.

Conflicting reports on who is in the front running to get the cashstrapped airlines comes exchanging letters to find a way out for the lease payment issue with PIA insisting a rate discount for the A 330 Aircraft wet lease, a top state almost each day with some parties saying its Texas Pacific Group (TPG) and others saying that Gamini Wettasinghe’s Peace Airways is also pushing for it. official involved in the deal in an administrative capacity told the Business Times.

There is no clear statement from the government as to whether the three short-listed parties continue to be in the running, or whether the party that has topped the list being considered, or whether all three have been dropped.

Using the media to put pressure on the government claiming that his bid is by far the best, Mr. Wettasinghe has had two media conferences during the past two weeks on his proposal and on enlisting the support of airline staff unions. He says the company’s shares will be given to its workers should he succeed in the bid.

TPG, Peace Airways and Super Group were shortlisted out of eight that responded to the Ministry of Public Enterprises’ expression of interest to partner SriLankan Airlines but some sources say the last two are out of the race though there is no official announcement on this.

According to the Ministry of Public Enterprise sources, TPG's proposal was submitted to the Prime Minister.

Latest reports indicate that the government has also initiated discussions with a Middle Eastern carrier. They say that the issue with Peace Airways was ‘the source of their funds’. "He isn't saying where it’s from," a source told the Business Times. One thing has clarity though; that the state will only part with 49 per cent and retain the majority.