Response to ‘Nishantha Ranatunga defends time at Mihin and charts way forward’

Wednesday, 4 March 2015 00:00 - - {{hitsCtrl.values.hits}}

I read with interest the article “Nishantha Ranatunga defends time…’ published in the Daily FT on Monday 2 March (http://www.ft.lk/2015/03/02/nishantha-ranatunga-defends-time-at-mihin-and-charts-way-forward/). I am indeed concerned and perturbed that the former Mihin Chairman and CEO when asked about proposed plans to amalgamate Mihin and SriLankan says that he did not see the benefits of doing so, as he believed that costs would rise. As a ‘C’ level executive I am at a loss to believe that he made such a statement and hope that he was misquoted. As Mihin and SriLankan are in similar businesses, the merger can be easily accomplished and can be expected to result in substantial economic benefits to the company and to the taxpayers like us. The merger will result in only one Chairman/CEO and this has already been achieved and I believe has saved the company in excess of Rs. 20 million per annum. Then the need for separate Operational and Business departments such as HR, Finance, Administration, Sales and Marketing, International Offices, GSAs, etc., can be rationalised, which will of course require termination of contracts resulting in long term savings for the company. Routes can be rationalised saving on engine wear and tear, fuel and further manpower costs. It is said that terminal costs are cheaper when a company is declared bankrupt. The rationale for a merger is to make 1+1=3 or 4 instead of 2. This in my view is probably easier to achieve in this case due to the synergies that can be attained in so many areas. Tony Sylvester