In an interesting development, Tata Sons name is being popped up as a possible investor in cash-strapped SriLankan Airlines by local media. The Sri Lanka government is planning to privatise the airline since some time now and looking for a possible investor. But the current socio-political turmoil in the country is turning out to be a hindrance in the process.
Ashok Pathirage, Chairman, SriLankan Airlines said: “I am supportive of privatisation as long as the right buyer was found.” He said during a recent government committee on public enterprises hearing.
SriLankan Airlines currently has a 63.21% market share based on seat availability while Air India has the second biggest presence on Sri Lanka - India sectors, with a 13.68% market share. If Tata Sons were to acquire part or full share in SriLankan Airlines along with 4.69% of Vistara’s market share, the group will provide 81.58% of all seats on India-Sri Lanka route which might raise competitive issues.
SriLankan Airlines flies to majority Indian cities, Bangalore, Chennai, Delhi International, Hyderabad International, Kochi International, Madurai, Mumbai International, Thiruvananthapuram, and Tiruchirapally from its Colombo hub.