when its expected to be in service?

SLAF suspends civilian flights; incentives for other domestic operators

The Government recently took policy decisions with a view to promoting domestic air services. These are published on the CAASL’s website and include a proposal to set up a dedicated passenger terminal at the Bandaranaike International Airport (BIA) to handle domestic air services; make available a common maintenance hangar at BIA for domestic operators; demarcate part of apron ‘D’ for domestic flights and introduce a separate charging mechanism; and to instruct all domestic operators to night-park their commercial aircraft at Ratmalana owing to space issues at BIA.

It was also decided to develop Sigiriya, Palaly, Hingurakgoda, Koggala and Trincomallee airports for domestic operators using funds from donor agencies and the Airport & Aviation Services (Sri Lanka) Ltd. Operations of all civil flights will be subjected to civil aviation requirements and self-handling will be permitted at all domestic airports except BIA.

Ground-handling charges at BIA will be reduced for domestic air operators and aviation fuel supplied at all internal airports. Slot allocation will be done by the Director General of Civil Aviation (DGCA) and some helicopter landing sites will be set up in Colombo city. Legislation will be amended to release domestic aviation from value added tax while there will be a one-year (from the date of commencement of operations) exemption of landing and parking charges. A request will also be made to the Finance Ministry to exempt domestic aircraft leases from withholding tax.
The same statement on CAASL’s website said the SLAF has undertaken to stop civilian passenger transport but the Air Force has requested the regulator to remove that sentence.

The CAASL has invited applications and business proposals from the private sector for domestic air services. Limitations in space and facilities means the DGCA will take a first-come, first-served position with particular emphasis on type of aircraft (Western-build, modern planes with not less than 20 seats). Operators are encouraged to start services “at the earliest”.

The Sunday Times

This is not the complete picture.

Sri Lanka is marketed as a seasonal destination during the European Winter - just like Goa.

There simply isn't enough traffic to justify year round operations.

There isn't much of a Business or Premium market so that greatly affects yields. Airlines cannot make money operating year round to Colombo. The aircraft can be more profitably deployed on other routes.

Sri Lanka hotel prices are too high compared to Thailand and Malaysia - not good value for money. Poor service and lazy people is not how you attract repeat business.

Most people you meet in Sri Lanka are trying to rip you off - gets old real fast!

Who wants to harassed by groups of low IQ thugs down south? Nobody.

The word is out.

Personally I will only set foot on the island if I have to for my work - otherwise I'm boycotting the place.

I am wondering how come the some of European Airlines like Turkish Airlines (Daily) and Ukraine Airlines (3 weekly) are flying year-round service to Colombo?

This is not the complete picture.

Sri Lanka is marketed as a seasonal destination during the European Winter - just like Goa.

There simply isn't enough traffic to justify year round operations.

There isn't much of a Business or Premium market so that greatly affects yields. Airlines cannot make money operating year round to Colombo. The aircraft can be more profitably deployed on other routes.

...

I am wondering how come the some of European Airlines like Turkish Airlines (Daily) and Ukraine Airlines (3 weekly) are flying year-round service to Colombo?

With the Turkish Economy collapsing and the Lira losing up to 25% a day (!) I imagine route cuts are coming. Marginal routes like this will be the first to go imho.

With the Turkish Economy collapsing and the Lira losing up to 25% a day (!) I imagine route cuts are coming. Marginal routes like this will be the first to go imho.

SLAF suspends civilian flights; incentives for other domestic operators

Most of the people in this thread happy with this action. but no one notice prices will go up.

For example you will have to pay double for ticket to Ratmalana to Palaly or trincomalee than Helitours.

Helitours sustains lower flight operation costs since it is air force. That was main reason private sector can't competitive with Helitours.

and also don't expect Private sector aircrafts like MA 60 or something like that having routine flights to Palaly, batticaloa or Trincomalee since its not financial viable. We are small country and land roads are so much cheaper.

SLAF suspends civilian flights; incentives for other domestic operators

Most of the people in this thread happy with this action. but no one notice prices will go up.

For example you will have to pay double for ticket to Ratmalana to Palaly or trincomalee than Helitours.

Helitours sustains lower flight operation costs since it is air force. That was main reason private sector can't competitive with Helitours.

and also don't expect Private sector aircrafts like MA 60 or something like that having routine flights to Palaly, batticaloa or Trincomalee since its not financial viable. We are small country and land roads are so much cheaper.

Not entirely true.

TK's management have sort of insulated themselves against this, by having a higher proportion of their costs in Lira, while having a higher proportion of revenue in foreign currencies. That would essentially TK makes a profit off of a falling Lira.

Source: - http://www.airliners.net/forum/viewt...t=50#p20619645