Airlines oppose SriLankan’s hefty hike in ground handling fee

Wednesday, 24 May 2017 00:00 - - {{hitsCtrl.values.hits}}

Airlines are up in arms over planned moves by SriLankan Airlines to jack up ground handling charges at the Bandaranaike International Airport by as much as 30%.

Industry sources said the quantum of the hike was unwarranted and unjustifiable and SriLankan was simply trying to take other airlines for a “mistaken” ride.

At present SriLankan holds the monopoly of ground handling at the BIA and this status is under review by the Civil Aviation Authority.

Sources said that if effected the increase will force airlines to rethink their operations to Sri Lanka. Even before the planned hike, the few of international airlines serving Colombo had complained that ground handling charges were expensive vis-a-vis other airports whilst the service is not world-class.

The hike also comes when the airline industry is finding markets tough amidst a shrinking yield factor.

It is learnt that airlines are expected to strongly protest against the planned hike in ground handling charges at this week’s meeting of the Board of Airline Representatives (BAR) in Sri Lanka.

In FY 15/16, SriLankan earned Rs. 11.5 billion from air terminal and other services, up 23% from the previous year. This revenue is higher than the profitable catering business and duty free and only second to cargo while passenger revenue remains on top.

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