Bizarre route decisions of SriLankan Airlines

Colombo (News1st): Testifying at today’s (December 12) Presidential Commission of Inquiry on irregularities at SriLankan Airlines, SriLankan Catering, and Mihin Lanka was former Country Manager of SriLankan, Rajiva Prakash Jayaweera. Commenting on the airline's decision to fly to Gan Island in the Maldives, the witness stated that the decision was taken in September 2012, and flying commenced just six weeks later, without proper marketing or planning. It was revealed last month, that the loss-making operations to Gan island cost SriLankan more than 2.1 million US dollars. Representatives of the Attorney General's department also questioned the witness over a contract agreement extended to the Airlines by a Swiss tour operator named Hotel Planner. The 4-month agreement starting December 2011, agreed to accommodate 75% of every 150 seats with tourists, flying to Colombo and Maldives. The foreign tour operator agreed to reimburse CHF 775 or USD 830 per seat if the pre-agreed seat percentage was not utilized. While Zurich operations during the four-month period cost Sri Lankan a further estimated loss of 3.4 million US Dollars, the airlines did not receive a single payment from the tour operator.