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Dutch firm ups stakes on Airbus A 350 deal
View(s):More conditions set, besides huge termination fee of US$ 98 m; Govt. consults AG
The controversial payment of US$ 98 million or more than Rs. 14.5 billion to a Dutch firm for the cancellation of the A 350 aircraft ordered by SriLankan Airlines has run into snags.The Dutch firm Aerocap, which had said it had agreed on the low figure of US$ 98 million, is now urging the Government to fulfil further conditions.
One is the insistence that SriLankan Airlines should obtain a second aircraft on lease from the company. In addition, it has said, an aircraft now operated by SriLankan and now under lease, should have its period extended. The matter figured at a meeting of the Cabinet Committee on Economic Management (CCEM) chaired by Prime Minister Ranil Wickremesinghe.
The Committee directed SriLankan Airlines, which received the Aerocap letter, to seek the advice of the Attorney General. More importantly, SriLankan Airlines has also been told to verify with the International Monetary Fund (IMF) whether the payment of termination fee is in line with the conditions set out with the IMF. In addition, the Finance Minister has also been instructed to inform the Aerocap representatives to submit a written statement with the conditions.
Although the payment of staggering amounts as cancellation fees are being discussed with a third party from whom the Airbus A 350 aircraft has been ordered, no investigations have been conducted so far to ascertain who made the order and whether payment of commissions was involved.
Some industry sources say it would have been better for SriLankan Airlines to have operated the A 350 aircraft on the Australian route instead of paying a colossal US$ 98 million.