Mihin Lanka ran at a loss ever since inception in 2007
Sri Lanka’s budget carrier, Mihin Lanka, has been running at a loss ever since commencing operations more than nine years ago (in April 2007), according to official sources. In an email response to several queries raised by the Business Times one being whether Mihin Lanka had incurred losses over the years, parent company SriLankan Airlines said in a statement: “Mihin had never made an annual profit”. The airline, which is discounting flights at the end of the month and merging with SriLankan, was founded in October 2006 and began operations six months later. In the response, SriLankan said it will be absorbing 20 pilots from Mihin Lanka while of its total 300 staff, the majority will be offered employment at the national carrier.
It said SriLankan will run full service operations to all 11 destinations that Mihin Lanka operated. On pricing, SriLankan said ticket prices on former Mihin Lankan routes would vary based on date, the time, the season and other factors. The national carrier said Mihin Lanka was a low service carrier while SriLankan offers a full service. Of Mihin Lanka’s four aircraft, two will be inducted into the SriLankan fleet. Two other aircraft whose leases are ending will be returned to the lessor. The email response noted that SriLankan will continue from October 30th onwards to operate the same frequencies to Buddha Gaya and Varanasi.