COLOMBO - SriLankan Airlines' CEO Peter Hill’s work permit has been cancelled by the Board of Investment on Wednesday, for failing to comply with a request made by the main shareholder of the national carrier, officials confirmed.
"We have recommended the cancellation of a work permit issued to Peter Hill (A British National)," said Dhammika Perera, Chairman of the government's Board of Investment.
The cancellation of the work permit announced after the national carrier refused seats to President Mahinda Rajapaksa and his entourage, the government's investment board said on Wednesday.
Rajapaksa went on a private visit which was scheduled at the last minute, to the United Kingdom this month to watch his son's graduation from a naval college but couldn't get a place on the flight home on time because of heavy holiday traffic.
"An angry President Mahinda Rajapaksa wants Emirates appointed SriLankan Airlines CEO Peter Hill removed over the fiasco of not being allowed to fly back to Colombo from London via the national carrier," said a local daily.
The government says the airline "misled" it and had promised seats to Rajapaksa and his usually large 35-member entourage. But the airline sources deny the government accusation.
"They said they have enough seats ... and finally when the day comes, they said there were no seats for the delegation," Dhammika Perera charged.
However, the airline industry sources said that the President’s request for 18 business class seats and 17 economy seats came late and at a time when flights were over booked. UK is Sri Lanka’s biggest tourist generating market.
Mr. Perera said the government, which holds a majority 51 percent stake in the airline with the balance held by Dubai-based Emirates.
Meanwhile Mr. Hill said he had not been informed about the decision. Rajapaksa ultimately had to charter a flight with government-owned budget airline Mihin Air, which the president launched earlier this year and is named after him, to bring him and his delegation home.
Also the sources at SriLankan Airlines said government aides had requested seats for the delegation, and had been told that flights were full given heavy holiday season demand. “Airline had offered an alternate routing through the Middle East, which was rejected,” the sources further said.
The 10 year management deal signed in 1988 between the government of Sri Lanka and Emirates regarding SriLankan Airlines is up for review subject to tough negotiations. Emirates also owns 43% stake in SriLankan Airlines. The next meeting which will probably be decisive is slated for January 8.
"We have recommended the cancellation of a work permit issued to Peter Hill (A British National)," said Dhammika Perera, Chairman of the government's Board of Investment.
The cancellation of the work permit announced after the national carrier refused seats to President Mahinda Rajapaksa and his entourage, the government's investment board said on Wednesday.
Rajapaksa went on a private visit which was scheduled at the last minute, to the United Kingdom this month to watch his son's graduation from a naval college but couldn't get a place on the flight home on time because of heavy holiday traffic.
"An angry President Mahinda Rajapaksa wants Emirates appointed SriLankan Airlines CEO Peter Hill removed over the fiasco of not being allowed to fly back to Colombo from London via the national carrier," said a local daily.
The government says the airline "misled" it and had promised seats to Rajapaksa and his usually large 35-member entourage. But the airline sources deny the government accusation.
"They said they have enough seats ... and finally when the day comes, they said there were no seats for the delegation," Dhammika Perera charged.
However, the airline industry sources said that the President’s request for 18 business class seats and 17 economy seats came late and at a time when flights were over booked. UK is Sri Lanka’s biggest tourist generating market.
Mr. Perera said the government, which holds a majority 51 percent stake in the airline with the balance held by Dubai-based Emirates.
Meanwhile Mr. Hill said he had not been informed about the decision. Rajapaksa ultimately had to charter a flight with government-owned budget airline Mihin Air, which the president launched earlier this year and is named after him, to bring him and his delegation home.
Also the sources at SriLankan Airlines said government aides had requested seats for the delegation, and had been told that flights were full given heavy holiday season demand. “Airline had offered an alternate routing through the Middle East, which was rejected,” the sources further said.
The 10 year management deal signed in 1988 between the government of Sri Lanka and Emirates regarding SriLankan Airlines is up for review subject to tough negotiations. Emirates also owns 43% stake in SriLankan Airlines. The next meeting which will probably be decisive is slated for January 8.