Sri Lanka has secured a $2.9bn (£2.3bn) bailout from the International Monetary Fund (IMF) as it faces its worst economic crisis since independence.
https://www.bbc.co.uk/news/business-65010560
"Foreign minister Ali Sabry told the BBC the government will raise funds by restructuring state-owned enterprises and privatising the national airline."
Any front runners?
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- argentinevol98
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Re: Sri Lanka Government to privatise the airline.
If it hadn't been for the overall failures of their foreign investment strategies I'd say QR or EY. Could Indian investors be interested?
Re: Sri Lanka Government to privatise the airline.
Without short to medium term access to Russian airspaces, maybe airlines like Finnair or LOT could have a try to make CMB a transit point for Southeast Asia?
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- davidjohnson6
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Re: Sri Lanka Government to privatise the airline.
chonetsao wrote:Without short to medium term access to Russian airspaces, maybe airlines like Finnair or LOT could have a try to make CMB a transit point for Southeast Asia?
The Sri Lankan economy right now is not in a good place. That tends not to encourage airlines for anything more than O&D
Re: Sri Lanka Government to privatise the airline.
readytotaxi wrote:"Foreign minister Ali Sabry told the BBC the government will raise funds by restructuring state-owned enterprises and privatising the national airline."
Is there anyone willing to pay more than one rupee? Saying that the Sri Lankan economy is in shambles is an optimistic assessment and there's wayyyy too much potential for future government meddling in a high-profile enterprise like a national airline.
Re: Sri Lanka Government to privatise the airline.
The only chance I feel airlines like KQ and UL have to get private or foreign investors interested is if their respective governments follow the Air India take over model of having the government absorb all the historical debt and then have 0% stake in the airline's future share holding.
If neither of these are possible, then I do not foresee this privatization process being fruitful.
If neither of these are possible, then I do not foresee this privatization process being fruitful.
Re: Sri Lanka Government to privatise the airline.
argentinevol98 wrote:If it hadn't been for the overall failures of their foreign investment strategies I'd say QR or EY. Could Indian investors be interested?
For what reason? Pretty much bilaterals are there for taking. For places from India transiting via CMB is detour unless you are going to Australia/ Antartica. And India has a total for 16 services a week to Australia
Best, Subramanian
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- Flogskipari
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Re: Sri Lanka Government to privatise the airline.
Is there a limitation for how big a share foreign investors can own in a Sri Lankan airline?
Re: Sri Lanka Government to privatise the airline.
argentinevol98 wrote:If it hadn't been for the overall failures of their foreign investment strategies I'd say QR or EY. Could Indian investors be interested?
Prior to the current economic disaster - was UL and its former management structure the only example of the ME3 successfully running another carrier? I confess not very clear on the histories or details of the EK/UL partnership.
Such a shame as Sri Lanka and UL have the most phenomenal potential - If managed correctly.
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- Spiderguy252
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Re: Sri Lanka Government to privatise the airline.
smi0006 wrote:Prior to the current economic disaster - was UL and its former management structure the only example of the ME3 successfully running another carrier? I confess not very clear on the histories or details of the EK/UL partnership.
I believe UL was consistently profitable while it was under EK's wing (until 2008).
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