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Emirates-Govt. fiasco to fly into international court?
Speculation
was rife that Emirates Airlines was considering taking the fiasco
with the Sri Lankan Government to international court.
Last week, Emirates, which manages and part owns SriLankan Airlines,
fired a letter to the government that it has violated the shareholder
agreement between the two parties. The specific violation is the
cancellation of the work permit of Emirates-seconded CEO SriLankan
Airlines, Peter Hill.
Emirates, which is fully owned by the government of UAE, had been
dissatisfied over the Sri Lankan Government’s action without
a proper independent inquiry and reasoning on the part of the management
of SriLankan Airlines.
Government sees sinister motives on the part of Emirates and Hill.
The Ministry of Aviation has subsequently, asked for an explanation
and SriLankan Airlines is expected to submit it today.
Largely, on account of the failure by the CEO to ensure that President
Mahinda Rajapaksa and his delegation flew back from London to Colombo
on a SriLankan Airlines flight, the work permit and visa of Hill
was withdrawn. The Board of Investment and the Department of Immigration
and Emigration have instructed Hill to leave the country by December
28.
The government also wants Hill removed as CEO, while Emirates, on
the other hand, said that he will continue till March 31, 2008,
probably operating from Dubai.
The President and his delegation that were on a semi-private visit
to London, flew back on state-owned budget carrier Mihin Air after
being not satisfied with the options afforded by SriLankan Airlines.
Analysts said that the inability on the part of SriLankan Airlines
to fully accommodate the requirements of the President’s entourage
or the decision to rely on Mihin Air, weren’t sudden developments.
At least a week in advance, those handling the President’s
flight, had informed SriLankan Airlines that they will make alternate
arrangements, instead of counting on the national carrier. Thereafter,
Mihin Air had got activated, obtaining necessary pre-flight requirements
and was ready to fly over to London to bring back the President
and his team. However, the original impression created was that
SriLankan refused to accommodate the President in its flight and
Mihin Air came to the rescue at the final hour.
Independent
observers noted that both the government and SriLankan Airlines
could have better managed the problem, though it was unprofessional
on the part of the government to victimise Hill for taking a commercial
move, whilst giving three options, as opposed to a downright political
decision.
Whilst acknowledging security concerns, the airline’s flight
was fully booked, yet the SriLankan management had agreed to offload
some passengers with advance notification, to accommodate the President
and some of his officials, instead of clearing 35 seats in one go.
The 10-year management contract of Emirates expires in March 2008
and there had been several rounds of discussions. The next meeting
was originally slated for January 8 but, following the fiasco, analysts
wonder whether both parties would be in the best of spirits to sit
down and discuss business.
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