Air Lanka privatization

Wed, 04 Feb 1998, 00:00 WIB | Source: AFP

COLOMBO (AFP): Sri Lanka yesterday announced it was entering
into talks with the Dubai-based Emirates airline to sell 40
percent of its national carrier, Air Lanka, under a privatization
plan.

The privatization authority here said it will hold
negotiations exclusively with Emirates on the sale of Air Lanka
after evaluating proposals from seven companies but gave no time-
frame for concluding a deal.

Sri Lanka hopes to retain a 51-percent stake in Air Lanka so
that the airline will enjoy "national carrier" status and qualify
for concessions offered bilaterally. Nine percent of shares are
to be given to employees.

AirLanka is currently reeling under huge debt which has
affected modernization plans.

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