SriLankan Airlines’ Airbus deal flouted procurement rules: Auditor General

AIRLINE WOES: State-run SriLankan Airlines’ is one of the companies most badly hit from the crisis.

ECONOMYNEXT – State-run SriLankan Airlines had violated government procurement guidelines in entering a deal to purchase and lease 14 Airbus aircraft, without making a cost-benefit analysis, the Auditor General has said.

The Company had not adhered to Government Procurement Guidelines in obtaining consultative services for the entire process, selecting companies for purchasing six (06) A 330-300 aircrafts and four (04) A350-900 aircraft, leasing another four (04) A350-900 aircraft…” the AG said in his report on the audited accounts of Sri Lankan.

“The decision for purchasing aircrafts had been taken by the Board of Directors of the Company without obtaining approval of the Cabinet of Ministers and without making a proper cost benefit analysis.”

SriLankan had also paid a sum of 17.058 billion rupees as compensation for revoking leases of four A350-900 aircraft.

You may also read

SriLankan Airlines loses Rs41bn, balance sheet hole Rs168bn

SriLankan Airlines carrying 50-pct extra crew due to unions

SriLankan was in talks with Airbus SAS to change order for four other A350-900 aicraft to be delivered in 2020 and 2021 and replace them with A321NEO or A330NEOs.

So far 2,528 million rupees (19.21 million dollars) had been paid to Airbus as a pre-delivery fee, the Auditor General said. (SB-Colombo/Nov14/2019)

Advertisement

 

 

 

Latest Comments

Your email address will not be published. Required fields are marked *