Financial Times

Deccan Lanka not pursuing overseas flight operations
By Duruthu Edirimuni Chandrasekera

Deccan Aviation Lanka (Pvt) Ltd is not pursuing its planned international flight operations due to the financial inevitability and not because of red tape, according to top officials.

"All our financial modelling does not indicate a profitable situation currently on regional and short haul routes. This is the reason we did not go ahead with it. It has to do with pure economics and not red tape," Suren R. Mirchandani, Managing Director of the company told The Sunday Times FT.

The industry was abuzz some time ago with some saying that government red tape had stalled many contenders’ plans to take to the sky. Some industry officials had also expressed the view that these companies may never get a chance to operate international flights as the government budget airline, Mihin Air did not want any competition.

"You might find the other contenders (for an Air Operating Certificate (AOC) who want to start international flights) claiming red tape as an excuse, but the fact of the matter is if you really want to get it done, it could have been done," he pointed out, adding that any investor faced with the prospect of a good economic return, will 'fight through all that red tape'.

"Red tape is a convenient excuse when you do not want to go forward. We never encountered red tape, because we made the decision well before (not to go ahead) we even proceeded," he said.

Mr. Mirchandani noted that there is over capacity in the regional sector. "Between Colombo and Chennai, there are six daily flights. Low cost players with massive economies of scale are going to win the day. Getting into regional routes as a small player and competing with people who have 60, 70 aircraft is not a very smart thing to do, unless you have a big ego," he added.

Top to the page  |  E-mail  |  views[1]


Other Financial Times Articles
Hayleys selling Dimo stake at Rs 544 million
Deccan Lanka not pursuing overseas flight operations
Browns back to plantations
LIOC heeds state request
Aitken Spence’s Maldives property wins global award
Conflict of Interest
Drama at CIMA: Serious governance issues
Lankan inflation highest in the region-HSBC report
Exco of the Alumni Association of the Moratuwa University
Business Briefs
Sri Lanka works out effective ways of fighting cyber crime
Former British High Commission property going, going, gone ….
Sri Lanka Tourism to rejuvenate Hikkaduwa
Oil exploration needs adequate laws and regulations
Improve tourism and investment or else no go for air travel
JWT CEO- Thayalan Bartlett awarded the WPP Atticus award for advertising
To be or not to be a rice exporter
Coconut product exports head towards grinding halt
AGM of Sunday Times Business Club
Sri Lankan inflation at ‘frightening’ levels- Hayleys chairman
In Sri Lanka a ‘new kind’ of Corporate Social Responsibility (CSR) is emerging, a UN official says
International symposium discusses range of food and health issues
Business Plan competition winners known on Wednesday
Unilever Sri Lanka wins regional Occupational Health award
Business Superbrand status for Ceylon Glass Co
AIBS 2008 – an enjoyable evening for all
Tea Board to spend Rs 30 million on new lab for MRL testing
Dialog mobiles can be reloaded overseas
Munchee Group sees 53 % growth in 2007-08
Sri Lanka, India chambers in MoU to promote trade and investment
Sri Lankan foreign bonds oversubscribed-CB
Sri Lankans can access Corbis’ 100 million image library
Need to cut government spending
Kotelawala sues Central Bank Governor over mandatory code
CEB says electricity consumption has dropped
CFA ties up with Seylan Bank, NTB on easy payment scheme for students
Sri Lanka’s ACL Cables wins Asia Pacific Quality Award
CCC missions to Iran and Pakistan end successfully
SriLankan Airlines increasing flights to the Middle East
IFC, Dialog help small entrepreneurs to develop business skills
American Chamber’s new board of directors


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2008 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution