SriLankan Airlines, Mihin Air to merge, Mihin brand to discontinue - official

Budget carrier Mihin Lanka is to merge with its parent SriLankan Airlines with the brand image of the smaller airline being discontinued, it was announced on Thursday.

Public Enterprises Development Minister Kabir Hashim and his deputy, Eran Wickramaratne in a joint media briefing said that the two airlines will combine into one SriLankan Airlines brand to cut down operational costs.

It was the first media briefing on the loss-making national carrier after the government earlier this year announced sweeping changes including directing the Treasury to take up a large part of the loss, and looking for a management partner.

It was stated that a forensic audit is currently being undertaken by an international organization on the report by the lawyer J.C. Weliamuna probe which highlighted serious shortcomings and corrupt decisions at the airline during the tenure of the previous regime.

Details of the wet lease of a SriLankan Airlines aircraft to Pakistan International Airlines, a development which was earlier reported in the Business Times, were also revealed at the briefing. (Duruthu)