Airline Passenger & Investor Protection Strengthen in Sri Lanka

06th April 2011, www.lankabusinessonline.com

Sri Lanka plans to introduce consumer protection laws and ratify international conventions that will better protect investors and ensure higher compensation for airline passengers, an official said.

"We're planning to bring consumer protection laws aiming at some aspects of passenger travel," said H M C Nimalsiri, director general of civil aviation authority.

"Today, some passengers go to the airport with confirmed tickets but at the last moment are denied boarding.

"We need to bring rules like what's applied in Europe where if passengers with confirmed boarding passes are denied boarding, airlines should pay compensation for inconvenience caused to them."

Nimalsiri also said the government expects to ratify two international conventions that will increase airline liability and compensation for passengers and better protect investors.

The Warsaw Convention that is presently followed provides compensation of only 16,600 US dollars in the event of a passenger fatality.

Under the Montreal Convention the compensation can go up to 100,000 dollars, Nilamsiri said.

"If a passenger's relations can prove death was due to airline negligence, then the liability would be unlimited."

Sri Lanka also intends to ratify the Cape Town convention that creates international standards for the registration of ownership of mobile equipment like aircraft and engines.

The convention safeguards claims of all parties in airline transactions and gives an assurance to investors to invest in the sector, Nimalsiri said.

Provisions in the convention are seen as reducing the uncertainty of lenders in aircraft financing, offering them better protection, and thereby reducing the interest rate they charge.

This is seen as particularly beneficial for developing economies because of the higher interest rates their airlines often have to pay.

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Colombo Dockyard Delivers 2nd Passenger Vessel to Administration of Union Territories of Lakshadweep, India

29th October 2010, www.lankabusinessonline.com

Sri Lanka's Colombo Dockyard delivered the second of a pair of passenger vessels for an Indian customer but warned profitability could dip this year owing to the effects of recession and growing competition.

Managing director Mangala Yapa said the yard's order book for new buildings was full but it faced tough competition especially from Chinese yards in the repair business.

Yapa said he was confident the yard would do well this year too having had sales of 12 billion rupees and profits of two billion last year.

"Now we're experiencing tough competition from Chinese yards," he said in a speech to flag off the new vessel.

"There could be some drop in profitability because of the competitive nature of the market."

The yard , which books profits on vessel delivery, Thursday delivered the second of a pair of passenger craft for India's Lakshadweep islands.

The vessel, which can carry 250 passengers and 100 tonnes of cargo, was built for the Administration of Union Territories of Lakshadweep and is named Lakshadweep Sea.

She set sail from Colombo port to join her sister vessel, Arabian Sea, which was delivered in January 2010 and will operate between the Indian mainland ports like Cochin and the Lakshadweep island, as well as in the inter-island routes.

Colombo Dockyard said the vessels were the biggest hulls built by the yard and are meant for operation in all weathers.

Passengers have different categories of accommodation on the vessels, with two VIP cabins, 10 first class, 40 second class and 200 normal class passenger transportation facilities. All passenger compartments are fully air conditioned using an air conditioning system.

Yapa said that peace has given a fillip to the yard's marketing efforts and helped win new customers.

"The emergence of peace and stability has helped us expand our marketing activities."

The yard this signed signed a deal to build two offshore oil platform supply vessels for a Singapore customer.

"In ship repair too we were able to attract many new clients particularly from Europe and the Far East who had been reluctant to come to Colombo earlier because of the war."

The island's 30-year ethnic war ended in May 2009 leading to the removal of marine war-risk insurance advisories and faster economic growth.

Related Info:
Sri Lanka Dockyard Wins Contract for Two Multipurpose Platform Supply Vessels (MPSVs) for Greatship Global Offshore Services of Singapore

Sri Lanka's Colombo Dockyard Delivers Supply Vessel to Singapore's Greatship Global Offshore Services