BAR says multinational giant will profit more  than the State from ten-year contract By Namini Wijedasa The Board of Airline Representatives in Sri Lanka (BAR) is opposing a Government proposal to award a ten-year contract to the multinational information technology company SITA for enhancing border security — a deal which industry sources say will earn [...]

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BAR says multinational giant will profit more  than the State from ten-year contract

By Namini Wijedasa

The Board of Airline Representatives in Sri Lanka (BAR) is opposing a Government proposal to award a ten-year contract to the multinational information technology company SITA for enhancing border security — a deal which industry sources say will earn far more revenue for the company than for the State.
Each passenger flying into and out of Sri Lanka will be taxed US$ 5 on their two-way tickets for these services — a fee that airlines say is much too high. But, under the proposed agreement, a higher percentage of the tax will go to SITA, industry sources said.

The Civil Aviation Authority (CAA) has already issued a directive with regard to the implementation of an Advanced Passenger Processing (APP) and Passenger Name Record (PNR) project in Sri Lanka.

It was to have taken effect yesterday but has been delayed over industry protests. The project was first floated by SITA as an unsolicited proposal.
APP is “a system whereby required data elements are collected and transmitted by airlines to border control agencies at the time of check-in”. PNR is “a record in the database of a computer reservation system that contains the itinerary for a passenger or a group of passengers travelling together”.

Industry sources welcomed the move but questioned why the Government wanted to sign a contract with SITA for ten years when technology was bound to change much faster. They also ask why the bulk of the fee charged from passengers for the service is going to the company and not to the Government.

BAR has taken a strong stand against the proposal. “While appreciating the Government’s efforts to enhance border security, it is with dismay we note that a third party service provider has been contracted to collect this surcharge per each inbound and outbound traveller despite the alternate recommendations made by our Association that are deemed to be cost effective and in accordance with international standards,” it says, in a letter to Civil Aviation director General H.M.C. Nimalsiri.

“All airlines will comply if APP is a requirement by the State, provided the funds are collected by a Government Authority and we would like to reiterate that our members do not wish to deal with any third party directly,” it insisted. “The Board of Airline Representatives also believes that it is not practical to sign an agreement for 10 years with the constant advances in technology for data analysis.”

“We would also like to point out that as per your circular only transit passengers are excluded from paying this surcharge and hence please clarify whether infants too have to pay this fee,” it said. “Also, please enlighten to us whether this levy is interline-able.”

The BAR’s greatest concern is that, with the additional cost burden on the traveller, Sri Lanka will be unable to compete effectively within the region.

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