Peace Air makes US$ 2.2 bn bid to run Mattala Airport

 Peace Air has made a US$ 2 .2 billion bid to operate Mattala Rajapaksa International Airport (MRIA) on a lease basis. The bid includes, total operations including ground handling and catering.

Peace Air Chairman, Gamini Wethasinghe told media that they had also made a US$ 5.5 billion bid to take over and run SriLankan Airlines. “We are yet to get a response.”

He said that they have the money, already deposited to run both these operations along with assistance from Lufthansa Technic of Germany. He said that if they do not get SriLankan they will concentrate on MRIA. “We will invest further and then set up Peace Air with 25 aircraft that would be purchased on upfront cash basis.”

He said that Peace Air would not only be a region airline but an comprehensive carrier and would be the biggest competitor for SriLankan. He said that while operation a full service airline, they will also reserve around 6 flights to operate a budget airline. “Both will operate out of MRIA.”

Wethasinghe said that they are also in talks with Malaysian Airlines to acquire four A380 aircraft to operate under Peace Air branding in the second stage of their operations.

He said that the national carrier SriLankan can be easily turned around if it’s given to them and what is firstly needed is to abolish the lease agreements that are eating the profits of the airline. “I don’t agree that the lease agreement clauses cannot be amended. If I am given the airline to be run, I will terminate these agreements.”

“I still feel that knowledgeable people are not being appointed to run the airline. I will take over and I will ask the present CEO, Suren Ratwatte to be in charge of a proposed A380 operations as he is a pilot who flew them in Dubai.”

My plan is (if given to run the national carrier), firstly exit from the lease agreements and then to buy 25 more aircraft on an upfront cash basis and increase the fleet to 50 within six months.

He also said that he will also restart the Mihin Lanka budget airline again and reinstate the 400 employees who were ‘sacked’ when the airline was liquidated.