AASL turns to outsourcing of Katunayake airport fixed assets
In an attempt to reduce costs and increase revenue by preventing malpractices, Airport and Aviation Services (Sri Lanka) Ltd (AASL) is now outsourcing some of the fixed assets at the Bandaranaike international Airport (BIA), Chairman of the state-owned entity, Saman Ediriweera said.
The aim is to open up the airport service provision to the private sector while retaining responsibly for policy, regulation and overall supervision with the government, he pointed out.
Responding to trade union allegations of an attempt to hand over fixed assets one by one at the airport to the private sector under the guise of management restructuring, Mr. Ediriweera noted that for the AASL to function commercially, it has to outsource the loss making institutions and unproductive fixed assets to the private sector in accordance with the government policy.
The Standing Cabinet Appointed Procurement Committee (SCAPC) on behalf AASL has called for bids recently to outsource three car parks belonging to the airport due to losses incurred by the state owned entity owing to malpractices, he said stressing that the term of the contract will be three years.
The terminal car park has the capacity to accommodate 400 vehicles (only cars and vans). The remote parking area, located 300 metres away from the terminal, is larger. It accommodates motor cycles, buses, Lorries and three-wheelers.
SCAPC has also invited proposals recently from prospective investors to establish and operate an airport hotel (minimum 2-star category) in Katunayake.
A 3-acre block of land will be leased out to the successful investor for a 40- year lease period renewable for a further period depending on the performance of the project and subject to new terms and conditions.
The hotel will cater to the requirements of airline crew members, airline passengers, offloaded passengers, transit passengers, other airport users and any type of customers.
Previously, the fuel filling station belonging to the BIA at Katunayake was handed over to Abans (Pvt) Ltd, he said.
Ten workers who worked at the fuel filling station have now been redeployed for airport duties, a airport trade union leader said.
He noted that those workers who had been transferred to BIA have no work at the airport office which is overstaffed.
Workers who served at the three car parks are to be engaged in airport office duties, he said adding that new recruitments to airport work have been suspended due to excess of employees.
AASL has statutory powers to manage and develop civil airports in the island, he claimed pointing out that handing over the fixed assets and institutions coming under this state entity to the private sector is unwarranted.