By Ravi Ladduwahetty,
Our lobby correspondent
 The second week of the 2007 Budget debate was somber a backdrop of excruciating boredom but the only sparkle came in the adjournment debate on Wednesday evening  proposed by Colombo District UNP MP Ravi Karunanayake who raised queries on the proposed budget airline- Mihin Air.
The former Trade and Commerce Minister, himself a shipping and aviation professional, queried on a series of allegations bordering on the very logistics of the proposed airline , especially whether it even had Cabinet approval , sending  the very newly formed airline company through  some stormy clouds.
Taking the tirade to the government ranks, he pointed out that the government itself was yet to spell out its aviation policy at a time where the industry was transgressing turbulent times with sky rocketing fuel prices.
Firing a series of salted barbs at the Mihin Air CEO Sajin Vaas Gunawardena, Karunanayake pointed out that the government was yet to indicate out whether it was for an open skies policy and if so, whether the skies were open for some and closed for others.
Tracing the history of Sri Lanka’s commercial aviation from  the Air Ceylon of yore to the SriLankan  which was partially divested  (40%) to Emirates  in 1998 with the 10-year-old management agreement  which lapses on March 2008, he  said that it was futile to launch a new budget airline  at a time which large amounts of funds were yet outstanding with 15 months yet to go for the Emirates Agreement to lapse.  He also drove home that the bargaining powers of the national carrier would be diluted with the second airline.
“My question is that  Mihin Air has been incorporated  at the 35th floor of the West Tower  of the  World Trade Centre  with the Articles and Memorandum of  Association being  incorporated with Sajin Vaas Gunawardena as the CEO, Defence Secretary Gotabhaya Rajapakse Treasury Secretary Dr. P.B. Jayasundera  and Sri Lanka Air Force Commander Roshan Goonetilleke as directors.  How do they come in as directors of the new company?  Is it that this company is owned by the government and has it been formed with the full blessings of the government and are they operating in their official or personal capacities?” he queried.      
He said that any state sector expenditure of over Rs. 25,000 was liable to be probed by the Committee on Public Enterprises (COPE) and added that funds running into millions were incurred for office refurbishment at the WTC with the press advertisements channeled through TRIAD advertising for the proposed Mihin Air. The agency being TRIAD headed by Varuni Amungama Fernando, being the daughter of Public Administration Minister Dr. Sarath Amunugama, was not lost on the House.   
Some of the other queries he raised were whether the trio of the CEO and the directors were signing in their official or personal capacities. Treasury Secretary P.B. Jayasundera and Ports and Aviation Ministry Secretary Tilak  Collure  had  reportedly said that they been blissfully unaware  whether  it had the nod of the cabinet.
 He said that even Airport and Aviation Services (Sri Lanka)  Ltd.Chairman Tiran Alles was not aware  and had not been consulted on the matter for slot arrangements.
He also called on Ports and Aviation Minister Mangala Samaraweera to   enlighten the House whether he approved the venture as the Minister in charge of the portfolio.   Karunanayake asked in lighter vein whether this too had been done without has express knowledge of Minister Samaraweera in the same manner that some land of the Trincomalee port was acquired by  the Board of Investment. 
 What was unprecedented was that the motion presented by Karunanayake was seconded by JVP’s Anura Kumara Dissanayake.

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Mangala responds

A visibly embarrassed Ports and Aviation Minister Mangala Samaraweera, in his reply said that if a formal application was lodged by that venture, it will be processed according to the present rules and regulations and that such conditions will be stipulated by the Director of Civil Aviation.
 The Minister said that there would be a joint Cabinet Memorandum presented by the Ministries of Ports and Aviation and Finance within the next few weeks on Mihin Air.
 He said that a Committee headed by Presidential Secretary Lalith Weeratunga and comprising Treasury Secretary Dr. P.B. Jayasundera, Ports and Aviation Ministry Secretary Tilak Collure and the Board of Directors of SriLankan Airlines were studying the performance of the national carrier, under the Emirates Management   in order to take up with the Emirates Management  prior to  the termination of the contract in March 2008.