Sri Lankan government to float new budget airline

Sri Lanka plans to float a state-run no frills airline, the government said Friday, to fly to the Middle East and neighbouring Asian countries.
The budget carrier, Mihin Air, is expected to cost around 1.5 billion rupees with the government initial setting aside 500 million rupees as working capital, director of the government information department, Anusha Pelpita said.
The new state budget carrier comes as a surprise to the aviation market as the Civil Aviation Authority had shortlisted three carriers to operate no frills airlines.
The three – Holiday Air, Expo Aviation and Deccan Air, have already got provisional licenses to fly to India, subject to technical clearances from New Delhi.
Holiday Air has teamed up with Malaysia's Air Asia, while Deccan is a subsidiary of India's Deccan Air. Deccan's Sri Lankan unit currently operates helicopter services to locals.
22/12/06 Lanka Business Online, Sri Lanka

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