Hill affair sours Govt-Emirates talks

The cancellation of the work permit of Sri Lankan Airlines CEO Peter Hill is bound to have a bearing on the talks aimed at extending the contract between the Government and Emirates Airlines to manage the national carrier, Emirates’ President Tim Clark said.

The contract ends on March 31 next year and discussions have been taking place for the renewal of the contract for more than 18 months, between Emirates which owns 43.6 percent stakes at SriLankan and the government which owns 51 percent. The rest is owned by the employees of the national carrier.

“This incident is bound to have a bearing on our ongoing negotiations with the Sri Lanka Government with regard to the contract renewal. That is all I am able to say at this point of time,” Mr. Clark was quoted as telling Emirates Business yesterday.

Meanwhile in an email response to a query about Mr Hill’s status, a spokesperson for Emirates Airlines said, "Peter Hill will remain CEO of Sri Lankan until the contract expires in March 2008." Other sources said Mr. Hill would most likely operate from Dubai, headquarters of Emirates Airlines.

On Thursday SriLankan Airlines was informed that Mr Hill’s work permit and residence visa had been terminated by the Board of Investment and the Department of Immigration and Emigration. The move follows SriLankan airline’s refusal to accommodate President Rajapaksa and his team on a Colombo-bound flight from London.

Subsequently, the President, his wife and his security entourage had to arrange a Mihin Lanka plane to return home after attending the graduation ceremony of his son at a British naval academy.SriLankan Airlines Corporate Management chief Chandana De Silva told The Sunday Times that Mr Hill had been given until December 28 to comply with the directive from the government. Commenting on the management contract, he said talks between the government and Emirates would resume early next month.