British consortium moots domestic airline

Shirajiv Sirimane

London: A consortium of British investors and Sri Lankan entrepreneur Jayampathi Perera is to launch a domestic airline in Sri Lanka. The airline, Euro Aviation is expected to take off the ground early next year.

Perera who is also the President of UK-Sri Lanka Business Council said they would invest US $ 15 million for this project. "Unlike other airlines we would not be leasing aircraft but would purchase two 17 seater aircraft," he said.

He said that it's more profitable to acquire aircraft. Euro Aviation would initially operate flights to Jaffna (Palali and Trincomalee) and look at other destinations. He said that there are lot of expertise Sri Lankan in London who likes to travel to Jaffna and other destinations in the Eastern province.

He said they have already received positive signals from the Defence Ministry and the Civil Aviation Authority for this proposal.

"We would market this airline in London so that the local expats can book their passage from London itself," he said. "With the opening of the Eastern province we also see opportunities in that area as well," he said.

He said the improving security situation in the country was the main reason for the consortium to come up with this investment. "I have been talking to them for along time. However they had not made a commitment until last month," he said.

Perera said they are also excited about the increasing tourism potential in the country and the destination being converted to a up market one. "We see a growing demand for Sri Lanka from high end travel and we see an opening to operate charter flights too," he said.

Hoteliers in the South and Kandy are disappointed that the Air Taxi service operated by SriLankan airlines was suspended. "Tourists don't like to spend a lot of time on the roads and the air taxis was something they looked forward to.

Perera said they would also purchase an air taxi for the second stage of the operation. "Kandy is a destination which is very exciting for air taxis," he said.

The third stage of the operation would include plans to fly international, mainly to regional destinations.