MIHIN LANKA ( PVT ) LTD PER
OPERATING EXPENSES AS AT 31. 03.
DESCRIPTION AMOUNT ( LKR)
Air craft Lease Charges
Aviation Fuel 3,521,402.60
Inflight Meals & Amenities
Cabin Crew Operations 5,933,914.26
Staff Salaries & Allowances
Call Centre fees 3,884,375.00
Internet Booking Engine
Advertising & Promotions
Duty Travel - Overseas
Lease/Hire of Vehicles
Registration & Membership fees
Printing & Stationery
Rent & Rates 5,490,000.40
Telephone & Other Utilities
Taxes & Levys 846,899.80
Bank Charges 163,793.47
Exchange Losses 929,036.59
Other Administrative Expenses
Mihin Lanka staff fight shy
When The Sunday Leader contacted
Mihin Lanka, the officials stated
they could not comment to the
The officials said the CEO or his
secretary should be contacted for
any comments regarding details on
its staff, pilots and catering.
However, the CEO and his secretary
are out of the country and the
officials said they were not aware
as to when they would be back.
Rs.8-9 mn loss per day
Despite state assistance in an
unprecedented manner, records show
that Mihin Lanka incurs losses
amounting to Rs. 8-9 million per
The operating expenses of Mihin
Lanka stands at Rs. 195,410,886.41
as at March 31, 2007. (See chart)
Ads and promos hit the sky
The highest expense incurred by the
company is for advertising and
promotions, which stands at Rs.
25,249,614.13. The amount spent on
staff salaries and allowances stands
at Rs. 16,129,577.06.
What is amazing in the entire scheme
of things is the aircraft leasing
charge of Rs.90.8 million. The staff
salaries and allowances cost a
thumping Rs.16.1 million while
advertising and promotional work had
cost Rs. 25.2 million. Maintained at
great cost to the state, Mihin is
now moving well beyond being a mere
financial liability that cannot call
itself a budget airline as it
reflects zero budgeting.
Compounding the issues are the risks
to the lives of passengers who are
at the mercy of inexperienced
foreign pilots who are hired to fly
the aircraft. By flying low cost,
what passengers may not know is that
their precious lives are of no
concern to those who manage Mihin.
Foreign pilots work for free
Bulgarian and Turkish pilots are
hired under a special scheme where
they are not remunerated by the
airline but by their respective
countries in order to gain flying
experience. Just as Mihin Lanka took
the country and its economy for a
ride, the stark fact is that by now
it is taking hundreds of passengers
on a 'death ride' when they fly
Mihin on low fares.
According to the winter flight
schedule, Mihin flies to seven
destinations. They are Dubai, Male,
Bangkok, Tiruchirapalli, Trivandram,
Gaya and Singapore.
Budget airline/high salaries
Mihin Lanka, purportedly a budget
airline offering low airfares to
passengers, is lavish with state
funds in remunerating senior staff
members with handsome salaries.
While it may appear stunning that
rigorous budgeting procedures have
not applied to Mihin as they do to
other companies, a close scrutiny of
the salary structures proves that
the budget airline is anything but a
Managing Director/CEO, Sajin Vaas
Gunewardena draws a monthly salary
of Rs. 450,000 while Senior Manager,
Flight Operations - Errol M. G.
Cramer makes Rs. 500,000 a month.
Head of Flight Operations, Athula
Dissanayake is the highest paid with
a salary of Rs. 600,000, according
to particulars furnished to
parliament on December 10, 2007.
Head of Commercial, Rohan Perera and
Head of Finance and Administration,
Lohan Sajiva Suwaris draw Rs.
There are six officials drawing Rs.
250,000 per month: Consultant -
Sugathadasa Rajapakse, Senior
Manager, Revenue Management and
Planning - Anthony Laxman Guyes,
Manager, In-flight Service - Gerald
Charles Mendis, Manager Ground
Operations - Ingrid Guruge, Manager
Engineering Quality Assurance -
Arulanatham Arudsothy, Manager
Aircraft Engineering - Nimal
Ratnayake and Manager Safety -
Coordinator to CEO, Vimal Perera and
Manager, Human Resources and
Administration, Joyce Kandaragama
are paid Rs.150,000 each per month
while Manager Flight Control draws
Mihin Lanka employs a total of 157
personnel. Chairman, Mihin Lanka,
Defence Secretary, Gotabaya
Rajapakse does not draw a salary, it
Home and home loan
Mihin Lanka owes a sum of Rs. 300
million to the Ceylon Petroleum
Corporation (CPC) for fuel
Petroleum and Petroleum Resources
Minister A.H.M. Fowzie told The
Sunday Leader that since its
inception to date, Mihin owes Rs.
300 million to CPC for fuel
Fowzie said that the company paid
for one load of fuel for every four
loads of fuel purchased by CPC.
"The money is paid in installments.
Since it is a government owned
entity, there is no stipulated time
frame for Mihin Lanka to make the
payments," he said.
According to Fowzie, the government
would have to make some arrangement
to settle the company's debt to CPC.