Unions happy with Peace Airways proposal to include their members on SriLankan Airlines board
At least one staff union at SriLankan Airlines is looking to meet Texas Pacific Group ( TPG), a US based investment group that’s ahead of three bidders to partner the state-run SriLankan Airlines.
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 it is learnt that only TPG is being considered at the moment.
Chairman of Peace Airways Gamini Wettasinghe, who is extensively using the media to whip up public opinion to swing the deal in his favour, called another media briefing – his second in two weeks – saying the company’s shares will be given to its workers if the purchase is successful.
Priyanthe Senadheera, President SriLankan Airlines Executive Association, on the sidelines of this media conference held on Tuesday in response to Mr. Wettasinghe's statement that representatives of the seven trade unions of the airline will on board, told the Business Times that it’s a good proposal but they want to contact TPG to examine/discuss TPG’s staff offers.
“We haven’t still come to a conclusion. We will share with our membership what transpired at the media conference with Mr. Wettasinghe,” he said adding that they want to contact the Ministry of Public Enterprise and obtain a contact for TPG. “We want to compare what’s most beneficial for the staff and also what’s best for the airline’s sustainability.”
Five out of the seven staff unions at the airline participated at the media briefing. While the Unlicensed Engineers Union and the Pilots Guild didn’t participate, the others - Aircraft Licensed Engineers Association, Flight Attendants Union, Sri Lanka Nidahas Sevaka Sangamaya Branch, Executives Association and Aircraft Technicians Association were present at the event.
While most didn’t want to be quoted, they all agreed that the Peace Airways proposal to include the unions on the board was a ‘ great’ proposal “From a staff perspective, this is a good propos- al,” one member of a union told the Business Times.
Most didn’t want to be quoted at all due to the stringent media policy at the airline prohibiting staff to discuss matters at the company. “Almost each month we get an e-mail stating about the media policy,” this member said.
Clearly unhappy with the management, he said that now there’s no leadership at the airline.
Officials said that TPG has complied with ‘all’ the requirements that the special committee appointed by the Cabinet, along with National Savings Bank (NSB) team which is the lead manager to this process under the aegis of the Ministry of Public Enterprises has stipulated. One such mandatory clause was to show audited accounts which the TPG has submitted.
Peace Airways says they’ll remove the debt burden of Sri Lankan from the government, will infuse US$ 5.5 billion and wants to retain this national asset for those in Sri Lanka. When queried on why they didn’t present audited accounts, Mr. Wettasinghe said that they are ‘ past accounts which doesn’t say whether you have the money now’.
Mr. Wettasinghe is seeking 70 per cent stake in SriLankan. Ever optimistic, he says that the national carrier carries 5 million passengers annually and posts a US$1 billion turnover yearly. “This airline is making money, but the aircraft leases cut into their profits,” he said adding that many want to get ‘ rid’ of this airline. He charged that this airline had entered into operational leases of aircraft instead of outright purchasing and aircraft leasing companies are siphoning the profits out of SriLankan.
Chairman of Peace Airways Gamini Wettasinghe, who is extensively using the media to whip up public opinion to swing the deal in his favour, called another media briefing – his second in two weeks – saying the company’s shares will be given to its workers if the purchase is successful.