Sri Lankan Airlines in transitional management deal with Emirates

Jan 09, 2007 (LBO) – Sri Lanka was working on a transitional management structure with Emirates for national carrier Sri Lankan Airlines after the Middle Eastern airline decided not to renew its management deal, a senior government official said Wednesday. But the government had not yet decided to buy back the Middle Eastern airline's 43.6 percent stake in Sri Lankan, Finance Ministry Secretary P.B. Jayasundera told a news conference.

Emirates on Sunday announced it would not seek to renew its 10-year contract to manage Sri Lankan Airlines that ends in March after months of unsuccessful and often acrimonious talks with the government.

The government had been seeking a greater say in the management of the national carrier which Emirates resisted.

Jayasundera said one of the aims of the management deal with Emirates had been to build up the airline's own management capacity.

This had now been done and the airline would seek a new chief executive, he said. .