Helitours transformation into a state-owned company runs into a storm
Helitours (Pvt) Ltd, a domestic airline managed by the Sri Lanka Air Force, is to be transformed to a state-owned company to streamline its operations and minimise its losses, official sources said.
The carrier’s current network of “civil passenger transportation in military aircraft” flights covers services from Ratmalana to Jaffna via Trincomalee-China Bay and Batticaloa via Gal Oya, a senior official of the Civil Aviation Authority told the Business Times.
The airline has two MA60s and one Y12E in its fleet, as well as a number of helicopters and in addition to the fixed wing aircraft facility. Helitours also provides the helicopter transport facilities to passengers as a dominant player in promoting the tourism in the country, he said.
Even though action should have been taken to transfer the ownership of Helitours shares to the Treasury Secretary this transformation had not been carried out even by the end of the year 2019/ 2020 under review although a decision was taken in mid-2019 to transform it to a state company, government audit inspection revealed.
The instructions of the Department of Public Enterprises and the recommendations of the Committee on Public Accounts towards the transformation process have not been followed.
Later a decision was taken to review the financial status of the company for identifying a business plan which suits Helitours at an initial meeting between the Director General of the Department of Public Enterprises and the officials of the Helitours (Pvt) Ltd.
Accordingly operational functions and the management of Helitours (Pvt) Ltd is to be retained with the Board of Directors of Sri Lanka Air Force for the time being while a Treasury official has been appointed as a director of the company.
An agreement has been reached as a temporary arrangement between Sri Lanka Air Force and Helitours (Pvt) Ltd to obtain aircrafts on lease basis.
Accounting all maintenance expenditures and all movable and unmovable assets (including human resources) of Helitours (Pvt) Ltd and allocating a percentage of income of Helitours (Pvt) Ltd will be made to the public account and for welfare activities of Sri Lanka Air Force, a Treasury official said.
The company had made a profit of Rs. 57.4 million for a period of 10 years from 2010 to 2019, a government audit report confirmed.
However hiring aircrafts amounting to Rs. 13.17 million by the Sri Lanka Air Force showed arrears even by the end of the year 2019/2020 under review, the report observed.
Revenue arrears of Rs. 10.82 million out of those arrears of Rs.13.17 million had been remained during the last 15 years, the audit inspection revealed.