The government is hoping to open up the domestic air travel market to the private sector to set up a domestic airline, in a bid to boost connectivity within the country for highend domestic and foreign tourists.
The Finance Ministry’s National Agency for Publicprivate Partnerships (NAPPP) had concluded the expressions of interest round for the airline in mid-february.
The airline is expected to utilize the domestic airport network and facilitate tourist transport to major tourism destinations in the island.
Currently, there is little competition in the domestic air travel market. The Air Force has a near monopoly on civilian air travel via the domestic airport network. John Keells Holdings PLC’S Cinnamon Air meanwhile provides services via the air taxi service, utilizing the amphibian aircraft operating from large water bodies near the key tourism attractions.
Initially, the proposed domestic airline is expected to have a fleet of at least two modern turboprop aircraft, having not less than 12 passenger seat capacity.
It is expected to use Bandaranaike International Airport as a base and operate a hop-on-hop-off service involving multiple airports.
The operator is expected to identify the preferred domestic airports and schedule routes.
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