Financial Times

GSA compulsory for international airlines
The government has decided to make it compulsory for international airlines to have a general sales agent (GSA) in Sri Lanka. Most airlines do have GSAs in Colombo but a few like Thai Airways, do not and instead operate their own office.

Civil Aviation Authority chairman Retired Air Vice Marshal Paddy Mendis said the new rule is meant to safeguard the country against any possible failure on the part of an airline to carry out its obligations.

Asked whether the government had decided to introduce such a rule, Mendis said: "Yes, it is because we must have some sort of accountability." Giving an example, he said airlines coming to Sri Lanka act as collecting agents for the airport tax and Tourist Board levy which are incorporated in the ticket price and which have to be paid to the CAA.

"If an airline has no representative here, the possibility exists that in the event the airline pulls out of Sri Lanka the monies collected may not be paid up. And if there is an accident and there is no representative in Sri Lanka, who is to be accountable?"

Mendis said that although the authorities do not believe established airlines would default in such a manner, they had to be careful because of the growing number of low-cost carriers in the region. Mendis also said international airlines need not necessarily appoint a Sri Lankan as their agent and that it was enough for them to have a body incorporated in Sri Lanka.

The trade has been given about six months time to implement the new rule.

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