No stake sale talks: SriLankan Airlines

The Dubai-based Emirates, which holds around 45 per cent stake in SriLankan Airlines, was managing the airline jointly with the Sri Lankan government until recently.

Emirates' failure to renew its management contract gave rise to speculation that it was looking to exit the Sri Lankan international carrier altogether.

"We are not up for grabs. We are looking for synergies with Indian carriers such as code-sharing agreements and interline agreements, but we are not selling any stake to them," Senaka Fernando, regional manager, Indian sub-continent and Maldives, SriLankan Airlines, said today.

Fernando was speaking on the sidelines of a conference to announce the launch of holiday packages for Indian travellers.

Recent media reports in India had suggested that Jet Airways and Kingfisher Airlines were in the fray for acquiring stake in the Sri Lankan full service carrier.

The airline looks attractive for acquisition because it has operations in lucrative markets of West Asia, Far East and Europe.

"To me, Emirates will continue to hold the shares of SriLankan Airlines, even if it does not wish to manage it. But, it may be looking for time to renew the contract," said Fernando.

At present, the Sri Lankan government is managing the airline, though Emirates has three representatives on the airline's board, he added.

INDIA OPERATIONS

SriLankan Airlines has teamed up with the Sri Lanka Tourism Promotion Bureau and hotels in the island country to offer holiday packages including airfare, hotel stay, meals, and tickets to the upcoming India-Sri Lanka cricket series.

The India operations contributed close to 20 per cent of the airline's turnover in 2006-07 (April-March), and is seen growing 5 per cent annually, said Fernando.

SriLankan Airlines operates 100 flights a week between India and Sri Lanka.

The average passenger load factor on India-Sri Lanka routes is around 75 per cent.

The Sri Lankan airline also operates flights to Europe, its biggest revenue generator, West Asia, and the Far East, said Fernando.

The airline plans to increase its India operations by raising the number of flights to select destinations where it sees more demand, he said.

"We want to consolidate our existing operations. We have rights to operate to 27 points, but are currently using only 11. There is an opportunity and a market for us to tap."

The airline is also looking to enter into more code-sharing agreements and marketing synergies with Indian carriers, he said, but added that it was "not in talks with anyone right now". SriLankan Airlines has a code-sharing agreement with Indian.