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Shortlisted bidder for SriLankan charges bids being rigged
PeaceAir Pvt Ltd, one of the three shortlisted candidates of the bids for the management of SriLankan Airlines (SriLankan) yesterday held a press conference to express its frustration over the bid evaluation process, which they charged was not transparent. “Please inform the public of our bids because someone is trying to hide our bids and our documents. No one gave comprehensive bids like us,” PeaceAir Chairman Gamini Wethasinghe said yesterday, and said that he has a “feeling” to this effect, even though he is sure that PeaceAir should win the contract. He added that the government was supposed to open up SriLankan Airlines for due diligence from PeaceAir and its consulting partners Lufthansa Consulting and Privatair, but that this is yet to happen. Meanwhile, he said that he has no idea about what State Enterprises Development Minister Kabir Hashim will discuss at the press conference about SriLankan tomorrow. Mirror Business has received an invitation from the State Enterprises Development Ministry for a press conference on SriLankan Airlines, which is to be held today (20th). PeaceAir CEO Keerthi Dissanayake said that PeaceAir has arrived to remove the debt burden of SriLankan from the government and the people of Sri Lanka. “The government can’t invest money. So we have come in. We’re willing to put in US$ 5.5 billion. No one in their right mind would say no, unless there’s a better offer, and with 40 years of experience, I can say that this is the best offer,” he said. He noted that US$ 1.25 billion will be utilized to purchase up to 70 percent of SriLankan shares, 90 percent of SriLankan subsidiary Mihin Lanka airline shares, and 100 percent of the SriLankan Catering shares, of which US$ 1 billion is for the settlement of the airline group’s debts. Further, he said that US$ 1.75 billion will be used to purchase 25 more new aircraft; Airbus 380s, Boeing 787s and Boeing 747s, while another US$ 250 million will be used as working capital. “So, we don’t want to let go of the current SriLankan employees. We want to train and hire more to operate these aircraft,” he said. Under phase 2, for which US$ 2.2 billion has been allocated in the proposal, Wethasinghe said that 50 more aircraft will be purchased and added to SriLankan through its future parent PeaceAir. He further added that he was currently in negotiations with his funding partners based in Monaco and Switzerland for investing a further US$ 3.3 billion, bringing the total investment to US$ 8.8 billion, but refused to mention who the investors were, despite calling for transparency from the government. He alleged that SriLankan was making large profits but due to poor past management, which had entered into operational leases of aircraft instead of outright purchasing them, aircraft leasing companies are siphoning all the profits out of SriLankan. “We will definitely purchase new aircraft and look at converting operating leases to lease purchase options or immediately purchase aircraft to replace the current operating leases with the same type of Airbus aircraft, as funds are available to proceed in this direction,” Dissanayake added. PeaceAir is intent on making SriLankan into a global airline that is larger than the likes of Emirates, Etihad and Qatar Airways, Wethasinghe said. The current management of SriLankan is cutting down the airline’s routes in order to make it into a regional airline. Along with the bid for the management contract of SriLankan, PeaceAir is also bidding to purchase 80 percent of shares of Mattala International Airport for US$ 200 million, with further payments which would place the full payment for Mattala Airport at US$ 500 million. Wethasinghe said that PeaceAir will utilize Mattala as a hub for airline operation, cargo and logistics as well as maintenance and engineering. He said that PeaceAir has been in existence since 1992 and that it has operated in partnership with airlines in Europe, Middle East and Australia since 1998. - source: http://www.dailymirror.lk/article/Sh....0zEAvxtI.dpuf
PeaceAir Pvt Ltd, one of the three shortlisted candidates of the bids for the management of SriLankan Airlines (SriLankan) yesterday held a press conference to express its frustration over the bid evaluation process, which they charged was not transparent. “Please inform the public of our bids because someone is trying to hide our bids and our documents. No one gave comprehensive bids like us,” PeaceAir Chairman Gamini Wethasinghe said yesterday, and said that he has a “feeling” to this effect, even though he is sure that PeaceAir should win the contract. He added that the government was supposed to open up SriLankan Airlines for due diligence from PeaceAir and its consulting partners Lufthansa Consulting and Privatair, but that this is yet to happen. Meanwhile, he said that he has no idea about what State Enterprises Development Minister Kabir Hashim will discuss at the press conference about SriLankan tomorrow. Mirror Business has received an invitation from the State Enterprises Development Ministry for a press conference on SriLankan Airlines, which is to be held today (20th). PeaceAir CEO Keerthi Dissanayake said that PeaceAir has arrived to remove the debt burden of SriLankan from the government and the people of Sri Lanka. “The government can’t invest money. So we have come in. We’re willing to put in US$ 5.5 billion. No one in their right mind would say no, unless there’s a better offer, and with 40 years of experience, I can say that this is the best offer,” he said. He noted that US$ 1.25 billion will be utilized to purchase up to 70 percent of SriLankan shares, 90 percent of SriLankan subsidiary Mihin Lanka airline shares, and 100 percent of the SriLankan Catering shares, of which US$ 1 billion is for the settlement of the airline group’s debts. Further, he said that US$ 1.75 billion will be used to purchase 25 more new aircraft; Airbus 380s, Boeing 787s and Boeing 747s, while another US$ 250 million will be used as working capital. “So, we don’t want to let go of the current SriLankan employees. We want to train and hire more to operate these aircraft,” he said. Under phase 2, for which US$ 2.2 billion has been allocated in the proposal, Wethasinghe said that 50 more aircraft will be purchased and added to SriLankan through its future parent PeaceAir. He further added that he was currently in negotiations with his funding partners based in Monaco and Switzerland for investing a further US$ 3.3 billion, bringing the total investment to US$ 8.8 billion, but refused to mention who the investors were, despite calling for transparency from the government. He alleged that SriLankan was making large profits but due to poor past management, which had entered into operational leases of aircraft instead of outright purchasing them, aircraft leasing companies are siphoning all the profits out of SriLankan. “We will definitely purchase new aircraft and look at converting operating leases to lease purchase options or immediately purchase aircraft to replace the current operating leases with the same type of Airbus aircraft, as funds are available to proceed in this direction,” Dissanayake added. PeaceAir is intent on making SriLankan into a global airline that is larger than the likes of Emirates, Etihad and Qatar Airways, Wethasinghe said. The current management of SriLankan is cutting down the airline’s routes in order to make it into a regional airline. Along with the bid for the management contract of SriLankan, PeaceAir is also bidding to purchase 80 percent of shares of Mattala International Airport for US$ 200 million, with further payments which would place the full payment for Mattala Airport at US$ 500 million. Wethasinghe said that PeaceAir will utilize Mattala as a hub for airline operation, cargo and logistics as well as maintenance and engineering. He said that PeaceAir has been in existence since 1992 and that it has operated in partnership with airlines in Europe, Middle East and Australia since 1998. - source: http://www.dailymirror.lk/article/Sh....0zEAvxtI.dpuf
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