Mihin Lanka
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Founded | 27 October 2006 | ||||||
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Commenced operations | 24 April 2007 | ||||||
Ceased operations | 29 October 2016 | ||||||
Parent company | SriLankan Airlines | ||||||
Headquarters | Colombo 02, Sri Lanka | ||||||
Key people |
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Operating income | ![]() | ||||||
Net income | ![]() | ||||||
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Employees | ![]() |
Mihin Lanka was a
The airline was plagued by financial losses, debt, waste, and corruption since its inception in 2007.[3] In order to reduce losses and increase productivity, the government approved the merger of Mihin Lanka with SriLankan Airlines by the end of 2016.[4][5]
Mihin Lanka ceased operations in October 2016 when SriLankan Airlines resumed its schedule on routes formerly operated by Mihin Lanka and took over the additional destinations.
History
Mihin Lanka was
Mihin began to operate on 24 April 2007 with two
In December 2007 Mihin was forced to ground the A320 serving India after the aircraft's Bulgarian owners
Later in 2008 Mihin leased a 19-year-old
In September 2011, Mihin Lanka announced plans to serve Bangkok, Chittagong, Kozhikode, Manila and Singapore, once it took delivery of its third aircraft.[28] In August 2012, the airline took delivery of its third aircraft, an Airbus A321.[29] The airline won the Bangladesh Monitor 'Best Budget Carrier' award in 2011.[30]
In 2013 it was announced that the airline would lease two Boeing 737-800s from 2015.[31] However Mihin Lanka revised the lease agreement and leased two Airbus A320neos and one A319-100 instead, due to the cost of introducing Boeing aircraft into Mihin's all-Airbus fleet.[32]
On 29 October 2016, Mihin Lanka ceased all operations and all of its routes, staff and aircraft were taken over by SriLankan Airlines.[33]
Corporate affairs
Overview
The Sri Lankan government initially made an equity investment of LKR250 million in Mihin.[34] Lanka Putra Bank, headed by Sajin Vass Gunawardena' father, also invested LKR300 million in redeemable preference shares.[35][36] In 2008 the government gave Mihin LKR500 million to strengthen its financial position.[34] In 2009 the government gave Mihin a further grant of LKR3,000 million.[37][38] The government also guaranteed two bank loans taken out by Mihin: a three-year (2006–09) LKR250 million loan from the state-owned Bank of Ceylon and a three-year (2009–12) LKR1,553 million loan from the Bank of Ceylon to lease an aircraft.[37][38][39] In 2010 the government made a further equity investment of LKR2,754 million, taking its total equity in Mihin to LKR3,004 million as at 31 December 2010.[40]
Mihin was financially troubled since its establishment.
Mihin was subject to financial irregularities with the financial figures it provided to Parliamentary Committee on Public Enterprises (COPE) being contradicted by the findings of the Auditor General.[41]
Business figures
Profit & loss (LKR million)[38][40]
2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | |
---|---|---|---|---|---|---|---|---|---|---|
Revenue | — | 2,570 | 373 | 1,700 | 3,142 | 5,099 | 7,481 | 9,963 | 10,262 | 11,702 |
Expenditure | 195 | 4,970 | 1,080 | 2,488 | ||||||
Gross profit/(loss) | (195) | (2,400) | (707) | (728) | ||||||
Net profit/(loss) before tax | (195) | (3,161) | (1,300) | (1,221) | (940) | (1,968) | (3,293) | (2,592) | (1,406) | (1,196) |
Balance sheet (LKR million)[38][40]
2007 | 2008 | 2009 | 2010 | |
---|---|---|---|---|
Non-current assets | 23 | 39 | 55 | 38 |
Current assets | 381 | 264 | 386 | 482 |
Current liabilities | 599 | 2,805 | 2,089 | 2,606 |
Non-current liabilities | 550 | 304 | 2,759 | 3,541 |
Equity | (195) | (2,608) | (4,406) | (5,628) |
Destinations
Mihin Lanka previously served the following destinations.[47]
Mihin Lanka had codeshare agreements with the following airline as of July 2015:
Fleet
Formerly operated
Aircraft | Fleet | Introduced | Retired |
---|---|---|---|
Airbus A319-100
|
1 | 2015 | 2016 |
Airbus A320-200
|
5 | 2007 | 2016 |
Airbus A321-100
|
1 | 2007 | 2016 |
Airbus A321-200
|
2 | 2012 | 2016 |
Boeing 737-800
|
1 | 2008 | 2008 |
Incidents and accidents
- On 6 January 2008, Mihin Lanka flight MJ401 from Colombo to Dubai was forced to issue a Mayday call and perform an emergency landing at the Chhatrapati Shivaji International Airport in Mumbai after one engine developed a severe oil leak and stopped working. Passengers were informed that the incident was due to the plane leaving Bandaranaike International Airport, Colombo without a vital component in one engine. There were no casualties.[citation needed]
- On 9 April 2012, Mihin Lanka flight MJ603 from Colombo to Jakarta, called an emergency landing back to Bandaranaike International Airport, Katunayake after about 1 hour from take off, due to a suspected fire in the cargo hold. According to the engineers a fire had not erupted within the plane but was a technical fault. No casualties were reported.[citation needed]
- On 13 May 2014, an A321 (call sign MJ-502) from Dhaka to Colombo made an emergency landing at Dhaka airport few minutes after takeoff due to navigation system failure.[citation needed]
References
- ^ a b c d e f "Melstacorp Annual Report 2019/20" (PDF). Parliament of Sri Lanka. Mihin Lanka. 31 March 2012. Retrieved 14 December 2020.
- ^ "Optimizing Mihin Lanka". Airline Industry Review. 13 May 2010. Archived from the original on 17 July 2012. Retrieved 9 November 2010.
- Sunday Times. Sri Lanka. 4 December 2011.
- ^ "Sri Lankan government to merge SriLankan and Mihin to cut losses, increase productivity". ColomboPage. 29 January 2015.
- ^ Shirajiv Sirimane (22 July 2016). "Mihin Lanka to wind up this year, increase productivity". Daily News. Sri Lanka.
- ^ a b c Dilrukshi Handunnetti; Mandana Ismail Abeywickrema; Arthur Wamanan (16 December 2007). "Trainee foreign pilots fly Mihin". The Sunday Leader.
- ^ "Mihin to launch domestic flights". Daily News. Sri Lanka. 6 January 2009. Archived from the original on 20 November 2010.
- ^ Sulochana Ramiah Mohan (14 February 2010). "People's perception of Mihin has changed- CEO". Lakbimanews. Archived from the original on 20 November 2010. Retrieved 9 November 2010.
- Sunday Times (Sri Lanka).
- ^ a b Mihin Lanka to Dubai Archived 20 September 2007 at the Wayback Machine AME Info, 21 April 2007
- ^ "Mihin Lanka's first Airbus arrives at BIA". Daily News. Sri Lanka. 17 March 2007. Archived from the original on 20 November 2010. Retrieved 9 November 2010.
- ^ Flightglobal.com.
- ^ "Mihin Lanka consolidates in Singapore". Daily News. Sri Lanka. 15 October 2007. Archived from the original on 23 November 2010.
- ^ a b "SriLankan Airlines". Lanka Standard. 3 October 2011.
- Flightglobal.com.
- ^ "Mihin loses A-321 due to default". The Sunday Leader. 24 February 2008. Archived from the original on 2 March 2012. Retrieved 4 March 2012.
- ^ Samarasinghe, Sonali (16 March 2008). "Govt. and directors caught in legal net as Mihin Lanka crashes". The Sunday Leader.
- Sunday Times (Sri Lanka).
- ^ "Captain Jumps first from the sinking ship, Mihin Air CEO resigns". Colombo Page. 19 April 2008.
- Flightglobal.com.
- Sunday Times (Sri Lanka).
- ^ Jayasundera, Ranjith (15 June 2008). "Continuing saga of Mihin". The Sunday Leader. Archived from the original on 5 June 2012. Retrieved 4 March 2012.
- ^ Jayasundera, Ranjith (18 January 2009). "Mihin again losing millions per day". The Sunday Leader. Archived from the original on 29 October 2013. Retrieved 4 March 2012.
- Sunday Times (Sri Lanka). 4 January 2009.
- ^ "Mihin Lanka re-launch on 1 Jan". The Island, Sri Lanka. 28 December 2008.
- ^ "Mihin Lanka resumes operations". CAPA Centre for Aviation. 12 January 2009.
- ^ "Mihin Lanka launches second aircraft". Colombo Page. 16 December 2010.
- ^ SIRIMANE, Shirajiv (15 September 2011). "Mihin goes for third aircraft". Daily News. Sri Lanka. Archived from the original on 29 July 2012.
- ^ Lanka, Mihin (1 September 2012). "Mihin adds another Airbus A321". Mihin Lanka. Archived from the original on 9 October 2012.
- ^ "Bangladesh Monitor awards best airlines". The Daily Star. 29 January 2012.
- ^ "Sri Lanka budget carrier to operate Boeing 737s from 2015". Lanka Business Online. 25 October 2013. Archived from the original on 6 March 2014.
- ^ "Mihin Lanka switches ALC lease deal from B737s to A320neo".
- ^ "Mihin Lanka". Mihin Lanka. Archived from the original on 24 September 2016. Retrieved 31 October 2016.
- ^ a b "Performance Report 2007" (PDF). Department of Public Enterprises, Sri Lanka. Archived from the original (PDF) on 5 November 2010.
- ^ Samarasinghe, Sonali (8 July 2007). "Shaky Mihin Lanka runs into a storm". The Sunday Leader.
- ^ Samarasinghe, Sonali (13 January 2008). "SriLankan Airlines in financial tail spin". The Sunday Leader.
- ^ Ministry of Finance and Planning (Sri Lanka). Archived from the original(PDF) on 2 November 2012.
- ^ a b c d "Performance Report 2009" (PDF). Department of Public Enterprises, Sri Lanka.
- Ministry of Finance and Planning (Sri Lanka). Archived from the original(PDF) on 10 July 2012.
- ^ Ministry of Finance and Planning (Sri Lanka). Archived from the original(PDF) on 1 December 2011.
- ^ The Bottom Line (Sri Lanka). Archived from the originalon 15 September 2012.
- ^ Hemmathagama, Ashwin (20 November 2011). "State Owned Loss Makers Still at Large". The Sunday Leader. Archived from the original on 20 November 2011.
- ^ Mohan, Sulochana Ramiah (26 February 2012). "Colossal loss incurred by Mihin". Lakbima News. Archived from the original on 4 August 2012.
- ^ Bastians, Dharisha (29 December 2011). "Treasury to settle Mihin's loan". Ceylon Today. Archived from the original on 4 March 2016.
- ^ Jabbar, Zacki (20 February 2012). "Shut down Mihin Air, losses exceed Rs. 13 billion-Harsha". The Island, Sri Lanka.
- ^ Ladduwahetty, Ravi (1 February 2012). "SriLankan nosedives with Rs. 19.5bn loss". The Island. Sri Lanka.
- ^ "Archived copy". Archived from the original on 21 May 2007. Retrieved 21 May 2007.
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External links
Media related to Mihin Lanka at Wikimedia Commons