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  News

Mihin runs into more money trouble

Mihin Air has been compelled to ground its A320 aircraft plying to Indian destinations due to non payment of dues.

The Bulgarian company that leased out the A320 aircraft to Mihin on a wet lease has instructed its pilots not to fly the aircraft as Mihin had not settled its dues under the lease.

Mihin has two long haul aircraft, an A320 leased from a Bulgarian company and an A321 leased from a Turkish company. The controversial budget airline pays Rs. 90,802,000.00 as leasing charges on a wet lease that includes cabin crew and pilots.

As at 31.03.2007 Mihin's operational costs stood at Rs. 195,410,886.41 and records reveal the budget airline is making a loss of about Rs. 8-9 million a day.

Though a budget airline Mihin, incurs a huge sun of Rs. 25,249,614.13 for advertising and promotions and Rs. 16,129,577.06 for staff salaries and allowances.

Mihin currently flies to seven destinations. They are Dubai, Male, Bangkok, Tiruchirapalli, Trivandram, Buddha Gaya and Singapore. The debt ridden Mihin currently owes a sum of Rs. 300 million to the Ceylon Petroleum Corporation (CPC) for fuel purchases and over USD one million to SriLankan Airlines for ground handling and other services.

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