Mattala Airport flies high in aviation history

By Shirajiv Sirimane

Mattala Rajapaksa International Airport

Sri Lanka is earning additional revenue for the first time in aviation history. Any airline flying over any country has to pay a fee to that country.

Airlines are now flying over Sri Lanka for two reasons with the opening of the Mattala Airport (MRIA). One it's a shorter distance to fly over Sri Lanka to the final destinations thus saving fuel and two, the opening of MRIA has enabled the airlines to land in any emergency. For this the airlines have to pay a royalty to the MRIA and the revenue from Overflying Charges after MRIA became operational, is Rs. 276,061,450.

Airports earn revenue by way of Airport Charges which include Landing, Parking, Aerobridges, Rentals, Embarkation Tax which totalled Rs. 224,256,565 as at November 30, 2014.

This alone accounts to around an average monthly revenue of Rs.12.5 million to the MRIA to date.

The MRIA has also benefited and has helped earn additional revenue for other stakeholders such as SriLankan airlines. Petroleum Corporation, nearby hotels and the youth by way of employment.

The second stage of the BIA being launched by President Mahinda Rajapaksa and Japanese Prime Minister Shinzo Abe. Minister of Civil Aviation, Piyankara Jayaratne looks on.

The MRIA also offers fuelling facilities provided by the Petroleum Corporation. Aviation Fuel Sales by the Corporation have recorded a revenue of Rs. 1,095,506,676 up to November.

Col. Prasanna J. Wickramasuriya, Chairman, AASL

Ground Handling Revenue by SriLankan Airlines from Foreign Airlines alone is over Rs. 5 million per month, thus for 18 months it's over Rs. 90 million.

The MRIA has also a pilot training school, Aviation academy and a Airline repair facility (MRO) which would help to triple the revenue.

Already many international airlines are using the MRIA and it's now being sold by travel agents as the gate way to the South and the East. For the first time leisure travellers have been given the opportunity to land at MRIA, explore South and East, travel to Cultural triangle and then exit from Colombo.

Col. Prasanna J. Wickramasuriya, Chairman, Airport and Aviation Services (Sri Lanka) Ltd. (AASL) said that with these new developments, more international airlines will touch down at the MRIA and the present revenue the MRIA return on investment would be better than expected. It would be definitely before 2020.

"I vehemently dismiss as 'ridiculous the news items that it would take 140 years to break-even to cost of building MRIA.'

"It is a great pity that they have opted to continue on that false public-cheating statement by an opposition MP sometime back that MRIA earns only Rs. 16,500 per month, which in fact was only the monthly rental levied on airline office occupied by Fly Dubai Airlines which operates a daily scheduled direct flight to Dubai International Airport."

"This false claim has been proved incorrect over and again by the Airport & Aviation Authorities in the recent past while stressing the fact that MRIA has been averaging Rs 12. 5 Million monthly as Airport Charges alone besides many other avenues of revenue being generated by MRIA for SriLankan Airlines on Ground Handling, Petroleum on Aviation Fuel Sales and Licensed Flight Support Services companies handling non-scheduled flights."

"People will not be fooled nor misled by these allegations based on hatred and not facts, but consider the MRIA as a precious and wise investment for the future at a time when main hotel chains such as Shangri La and Hyatt have started constructing hotels around Mattala/Hambantota, while another Malaysian giant Maju Group in the presence of Mahathir Mohmed, ex Prime Minister of Malaysia signed an MoU for an integrated resort at MRIA, which are clear evidence of the future success of MRIA," he said.

Besides, there are hundreds, if not thousands of indirect job opportunities and business ventures including tourism, travel and hotel trade being created in and around MRIA.

The Sri Lankan government's vision is to develop the economy of the least developed regions of the island. Hambantota and Monaragala districts are identified as potential regions and Greater Hambantota development programme was designed to uplift economic activities of the region. The concept of a second international airport for Sri Lanka originated in as early as in 1938.

The amount spent on the entire project will be 200 million US dollars. The Chinese government provides financial assistance. The area allocated for the airport is two thousand hectares. Construction will take place on two stages. "The Eco- Airport" represents any airport that takes appropriate measures to preserve the existing environment and further creates a better environment in the airport and its surroundings.

The Phase II of BIA Development has been launched.

Taking Sri Lanka one more step closer to becoming an Aviation Hub as envisioned in the 'Mahinda Chinthana Vision for the Future, The Phase II Stage 2 of the Project for the Development of the Bandaranaike International Airport was launched jointly by the President Mahinda Rajapaksa and Japanese Prime Minister Shinzo Abe upon the latter's arrival at BIA on a two-day official visit to the island recently.

Under this development phase the capacity of BIA which presently stands at 6 Million Passenger Movements per annum will be increased to 15 million. An additional finger pier will be constructed to the west of the present one.

A two tier passenger terminal with arrivals and departures separated as in most modern airports will also be constructed. A rapid exit to the Colombo Katunayake Highway will be provided directly from the terminal. Stage 2 will be implemented in two stages and the first stage is scheduled to be completed by early 2017.

The Japan International Cooperation Agency (JICA) is providing assistance for this stage with the loan agreement being signed directly with Airport and Aviation Services (Sri Lanka) Ltd.