SriLankan no longer only ground handler at BIA, MRIA
View(s):Sri Lanka is considering opening up ground handling services, a lucrative business at international airports, to global airlines in a bid to ensure competitive pricing.
“Several airlines have complained that ground handling charges in Sri Lanka are high, so in order to be competitive we need to open it up. With two it will be more competitive,” Civil Aviation Authority (CAA) Director General H.M.C. Nimalsiri told the Business Times on Wednesday.
He noted that a firm decision however on the matter has not yet been taken on the proposal which came up during an industry stakeholder meeting headed by the Prime Minister’s Office. It has been included in the new National Civil Aviation Policy for Sri Lanka that is yet to obtain Cabinet approval.
The policy paper states that on the subject of ground handling, “Subject to airport space safety, and security constraints, and also environmental concerns, airlines shall have the freedom to self-handle where permitted or to select from available Ground Handling service providers. The GoSL (Government of Sri Lanka) will ensure that the Ground Handling Services at International Airports are provided on competitive pricing.”
Mr. Nimalsiri said that depending on demand and capacity at the airport they would be looking at attracting only two service providers for ground handling at the Bandaranaike International Airport (BIA) and the Mattala Rajapaksa International Airport (MRIA).
With only 25 carriers flying into Sri Lanka, the Director General noted that it would not be possible to accommodate more than two service providers. “We have to think of a business aspect since there must be commercial viability as well,” he explained adding that too many would complicate things.
The DG noted that although this service is currently provided by SriLankan Airlines, it is actually a state run venture and not specified for any particular airline at present.
But in future they were hoping to open up this service as it is believed that the monopoly that has come about with only the national carrier involved in ground handling has left no room for competitive pricing.