Sri Lanka Hopes India Will Buy Into Airport Without Planes. China Refused

[$@rJen]

Sri Lanka Hopes India Will Buy Into Airport Without Planes. China Refused
Sri Lanka first tried to offer China the Mattala Rajapaksa Airport in the southern district of Hambantota but now but is now in talks with India.
World | (c) 2018 Bloomberg | Iain Marlow and Anusha Ondaatjie, Bloomberg | Updated: July 09, 2018 10:26 IST

by Taboola
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The airport deal could take the shape of a 40-year joint venture with 70 percent stake for India

Sri Lanka has already sold China a port that gets almost no ships. The island nation now wants India to take control of an airport with no scheduled flights.

The nation first tried to offer China the Mattala Rajapaksa International Airport in the southern district of Hambantota, but is now in talks with India, Prime Minister Ranil Wickremesinghe told Sri Lanka's parliament on Thursday. The move follows the $1.1 billion sale of the loss-making port in Hambantota to state-owned China Merchants Group.

The efforts are part of Sri Lanka's attempt to salvage loss-making projects built under a previous administration criticized for its close ties with China. Hambantota's port was a "white elephant" that accumulated nearly $300 million in losses since 2011, Wickremesinghe told parliament. But the port's sale to China was a "great victory" for Sri Lanka, he said, and getting Indian involved in the airport could help revive that asset too, he added.

"Just like the port without ships, there is also an airport without planes in Mattala," Wickremesinghe told lawmakers. "We spoke first to the Chinese about the Mattala airport, but we did not get a favorable response. So we are in discussions with India. In the future, I believe Mattala will also be an airport free of debt that will attract flights."

Joint Venture

India and Sri Lanka held talks this week to discuss a joint venture agreement for the airport with Indian officials, the country's deputy transport minister Ashok Abeysinghe told parliament this week, according to Sri Lanka's EconomyNext news service.

The airport deal could take the shape of a 40-year joint venture in which India takes a 70 percent stake in Mattala airport, according to the Daily FT, a daily financial newspaper in Sri Lanka.

Spokesmen for India's civil aviation and foreign ministries could not be reached, while spokesman J.B. Singh of the Airports Authority of India said he could not comment.

China Concerns

Both projects were built in an era when former President Mahinda Rajapaksa was taking billions of dollars in Chinese loans to build infrastructure projects in Hambantota, where his constituency is located. By the time Rajapaksa was ousted from power in 2015, more than 90 percent of Sri Lanka's total government revenue was going toward debt payments.

China's investments have also prompted worries in New Delhi, Washington and Tokyo about the growing spread of President Xi Jinping's $500 billion Belt and Road infrastructure initative.

COMMENT
The airport in Mattala was infamous for having just one scheduled daily flight. But that flight, operated by FlyDubai, was canceled from June 8, the company said in an emailed statement.



(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

 

[The_magnificent]

It is a failed project. The only purpose it serve is Bail out money for SL and keeping them in our court. Other than that I do not think there is any commercial value of doing it.

 

[$@rJen]

It is a failed project. The only purpose it serve is Bail out money for SL and keeping them in our court. Other than that I do not think there is any commercial value of doing it.

but how long it's going to keep them in our court??? Once the old regime gets back again its going to be another headache.....
the Funny part is how Chinese operated with Rajapaksha.... that idiot only wanted to fill his pocket while Chinese wanted more influence, both without giving a damn about lanka

 

[Quibbler]

It is a failed project. The only purpose it serve is Bail out money for SL and keeping them in our court. Other than that I do not think there is any commercial value of doing it.

Getting a long term lease will be a guarantee that hambantota wont be militarized by Chinese. We can install monitoring equipment there and have a complete knowledge of whats happening at hambantota. It does have strategic value.

 

[The_magnificent]

Getting a long term lease will be a guarantee that hambantota wont be militarized by Chinese. We can install monitoring equipment there and have a complete knowledge of whats happening at hambantota. It does have strategic value.

Well if Lankans want to sit on chinese lap, they will. we can only delay it by buying thr failed projects.

 

[Quibbler]

Well if Lankans want to sit on chinese lap, they will. we can only delay it by buying thr failed projects.

I wasn't talking about a political guarantee but a a material one. The radars on the airports alone can track most of the ships anD aircraft at Hambantota. A completely trackable military base is a no go.

 

[Skull and Bones]

Maybe we can operate some of our domestic airlines to boost tourism in that sector.

 

[Gadkari]

Operating a Flight training school would be of much value in India. We do not have enough of such training institutes. We need a lot of good pilots.

 

[Tshering22]

Getting a long term lease will be a guarantee that hambantota wont be militarized by Chinese. We can install monitoring equipment there and have a complete knowledge of whats happening at hambantota. It does have strategic value.

But what will we do with it? It is not like that airport is going to be a sovereign asset where we can do whatever the hell we want.

The cost of running airports is extremely high; installing equipment for spying is not really worth it especially when our military satellites can easily spy about the developments there. Moreover, Sri Lankan Navy has decided to move to Hambantota port.

Mattala Rajapakse Airport (MRA) is located in a place which has poor connectivity to Colombo; most areas are dense forests or have narrow roads (from international airport last mile connectivity perspective), the slot timing and commercial planning doesn't exist there.

Moreover, MRA's prosperity would mean cannibalising Colombo airport and Chennai airport.

Let's see; most likely an Indian private airport firm will operate it jointly with SL aviation authority and AAI as equity partners.

SL is not exactly in a strategic location from aviation perspective. India's larger airports in the south offer more opportunities, are more competitive and have economies of scale with rapid expansion. Bengaluru and Hyderabad are fiercely competitive and offer amazing products for airlines going either north-south or east-west destinations.

Chennai airport is even more dangerous competitor to MRA because it is closer and has more ancillary prospects. It is just SL's luck that Chennai is run by inefficient government-run agencies rather than competitive private companies.

Forget Indian airports as competition; if MRA needs to rise, there has to be excellent surface connectivity between MRA and Colombo airports and railway stations which is not the case. SL government will never allow that loss of revenue for itself.

So it is a precarious situation.

Operating a Flight training school would be of much value in India. We do not have enough of such training institutes. We need a lot of good pilots.

We have over 40 flying schools in India. They are not monitored well due to corruption except 2 or 3.

This if run, will not be any different and if it does, it would have to comply with SL authorities rather than DGCA.

 

[Quibbler]

But what will we do with it? It is not like that airport is going to be a sovereign asset where we can do whatever the hell we want.

The cost of running airports is extremely high; installing equipment for spying is not really worth it especially when our military satellites can easily spy about the developments there. Moreover, Sri Lankan Navy has decided to move to Hambantota port.

Mattala Rajapakse Airport (MRA) is located in a place which has poor connectivity to Colombo; most areas are dense forests or have narrow roads (from international airport last mile connectivity perspective), the slot timing and commercial planning doesn't exist there.

Moreover, MRA's prosperity would mean cannibalising Colombo airport and Chennai airport.

Let's see; most likely an Indian private airport firm will operate it jointly with SL aviation authority and AAI as equity partners.

SL is not exactly in a strategic location from aviation perspective. India's larger airports in the south offer more opportunities, are more competitive and have economies of scale with rapid expansion. Bengaluru and Hyderabad are fiercely competitive and offer amazing products for airlines going either north-south or east-west destinations.

Chennai airport is even more dangerous competitor to MRA because it is closer and has more ancillary prospects. It is just SL's luck that Chennai is run by inefficient government-run agencies rather than competitive private companies.

Forget Indian airports as competition; if MRA needs to rise, there has to be excellent surface connectivity between MRA and Colombo airports and railway stations which is not the case. SL government will never allow that loss of revenue for itself.

So it is a precarious situation.



We have over 40 flying schools in India. They are not monitored well due to corruption except 2 or 3.

This if run, will not be any different and if it does, it would have to comply with SL authorities rather than DGCA.

You are overestimating a capability of satellites. Satellites have a huge blind time. Moreover they can only see surface ships. A radar on the island can track every ship in realtime and even submarines. Satellites are no where a replacement for real physical presence. I agree on your point on economics of the port. In the end we need to see will the cost be worth it. If somehow feel it will be (gut feeling, dont have enough info to come to an conclusion).

 

[Tshering22]

You are overestimating a capability of satellites. Satellites have a huge blind time. Moreover they can only see surface ships. A radar on the island can track every ship in realtime and even submarines. Satellites are no where a replacement for real physical presence. I agree on your point on economics of the port. In the end we need to see will the cost be worth it. If somehow feel it will be (gut feeling, dont have enough info to come to an conclusion).

The cost of operating an airport is extremely high and far more exceeds than the strategic value.

China will still have an upper hand if it pushes the Lankans to forcefully remove our military surveillance equipment.

SL may not have much option then.

Remember 95% of their revenues are going in servicing their capital and infrastructure loans from China. Tea exports, agri-processing, tourism and trans-shipment doesn't generate enough to compensate the hell that Mahinda Rajapakse has put his country into for his own personal ego.

 

[My-Analogous]

Sri Lanka Hopes India Will Buy Into Airport Without Planes. China Refused
Sri Lanka first tried to offer China the Mattala Rajapaksa Airport in the southern district of Hambantota but now but is now in talks with India.
World | (c) 2018 Bloomberg | Iain Marlow and Anusha Ondaatjie, Bloomberg | Updated: July 09, 2018 10:26 IST

by Taboola
Sponsored Links
Sponsored
Its a Smart Move with Sobha Gardenia. (Sobha Gardenia)
Pay just 3 Lakh and own a home! (Anugraha)
Share
EMAIL
PRINT
0COMMENTS

The airport deal could take the shape of a 40-year joint venture with 70 percent stake for India

Sri Lanka has already sold China a port that gets almost no ships. The island nation now wants India to take control of an airport with no scheduled flights.

The nation first tried to offer China the Mattala Rajapaksa International Airport in the southern district of Hambantota, but is now in talks with India, Prime Minister Ranil Wickremesinghe told Sri Lanka's parliament on Thursday. The move follows the $1.1 billion sale of the loss-making port in Hambantota to state-owned China Merchants Group.

The efforts are part of Sri Lanka's attempt to salvage loss-making projects built under a previous administration criticized for its close ties with China. Hambantota's port was a "white elephant" that accumulated nearly $300 million in losses since 2011, Wickremesinghe told parliament. But the port's sale to China was a "great victory" for Sri Lanka, he said, and getting Indian involved in the airport could help revive that asset too, he added.

"Just like the port without ships, there is also an airport without planes in Mattala," Wickremesinghe told lawmakers. "We spoke first to the Chinese about the Mattala airport, but we did not get a favorable response. So we are in discussions with India. In the future, I believe Mattala will also be an airport free of debt that will attract flights."

Joint Venture

India and Sri Lanka held talks this week to discuss a joint venture agreement for the airport with Indian officials, the country's deputy transport minister Ashok Abeysinghe told parliament this week, according to Sri Lanka's EconomyNext news service.

The airport deal could take the shape of a 40-year joint venture in which India takes a 70 percent stake in Mattala airport, according to the Daily FT, a daily financial newspaper in Sri Lanka.

Spokesmen for India's civil aviation and foreign ministries could not be reached, while spokesman J.B. Singh of the Airports Authority of India said he could not comment.

China Concerns

Both projects were built in an era when former President Mahinda Rajapaksa was taking billions of dollars in Chinese loans to build infrastructure projects in Hambantota, where his constituency is located. By the time Rajapaksa was ousted from power in 2015, more than 90 percent of Sri Lanka's total government revenue was going toward debt payments.

China's investments have also prompted worries in New Delhi, Washington and Tokyo about the growing spread of President Xi Jinping's $500 billion Belt and Road infrastructure initative.

COMMENT
The airport in Mattala was infamous for having just one scheduled daily flight. But that flight, operated by FlyDubai, was canceled from June 8, the company said in an emailed statement.



(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Indian supported Govt really killing Srilanka. BD should take care of her self