Mihin Lanka lost $8.16 million in 2009, will the government continue to subsidize the losses?

Mihin Lanka (Colombo), the state-run budget carrier of Sri Lanka, lost $8.16 million in 2009, despite support from the national carrier, SriLankan Airlines (Colombo), according to this published report.

Mihin Lanka was started as a budget carrier despite Sri Lanka’s past experience with state-run full service airlines, and has now become a symbol of government waste.

After starting operations on March 4, 2007, Mihin Lanka quickly burned through its start-up capital.

Mihin Lanka ceased operations in May 2008 but re-started again in January 2009 after another cash injection from government funds.

Are Mihin Lanka’s days numbered?

Read the full report from Lanka Business online:

http://www.lankabusinessonline.com/fullstory.php?nid=305079734

Copyright Photo: Paul Denton. Airbus A320-232 4R-MRB (msn 977) approaches Dubai for landing.