Emirates considers Sri Lankan Airlines offer

17 May 2010

Emirates will sell its entire stake in Sri Lankan Airlines for the right price

Dubai’s government-owned carrier Emirates Airline is considering an offer by Sri Lankan Airlines to buy Emirates out of Sri Lanka’s national carrier.

According to local reports, Sri Lankan Airlines has offered Emirates $55m to sell its entire stake in the airline.

While Emirates did not verify the amount offered, a spokeswoman tells MEED that it remains in talks with Sri Lankan Airlines.

“We have showed our interest to sell our stake in Sri Lankan Airlines on more than once occasion. The negotiations with the Sri Lankan government are still ongoing,” says an Emirates spokeswoman.

Sheikh Ahmed bin Saeed al-Maktoum, chairman and chief executive of Emirates said last week that the airline would sell its entire stake in Sri Lankan Airlines for the right price (MEED 12:5:10).

The Sri Lankan government currently owns 51 per cent of its airline while Emirates owns 43.6 per cent. The remaining percentage is owned by Sri Lankan Airlines employees.

Emirates first acquired a stake in Sri Lankan Airlines in 1998 when Emirates and Sri Lanka signed an agreement for a 10-year partnership. Emirates chose not to renew its management contract when it expired in 2008.

Emirates achieved a net profit of $964m for the financial year ending 31 March, a 415 per cent increase on the net profit of $187m seen the previous year.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications