Emirates airline may sell all or part of its stake in state-controlled SriLankan Airlines after the Sri Lanka government sought greater control over the carrier's day-to-day business.
Emirates president Tim Clark said Emirates, which owns 43.6 percent of SriLankan and whose 10-year management contract of the carrier expires in April, would value its stake it about US$150 million.
He said the Sri Lanka government was seeking greater control over the day-to-day business of the airline, which was not acceptable to Emirates. He said SriLankan investors might be interested in buying Emirates' stake.
Emirates has notified the government of Sri Lanka that it will not be renewing the shareholder's agreement, which expires on March 31. With effect from April 1, management control of SriLankan Airlines will pass to the government of Sri Lanka.
The Sri Lankan government last month cancelled the work permit of SriLankan chief executive officer Peter Hill - who was seconded from Emirates - after the carrier refused seats to president Mahinda Rajapaksa and 35 officials who were visiting the United Kingdom.
Emirates had in September expected to renew its management contract for at least another five years and wanted to double the carrier's fleet to as many as 30 aircraft.
Emirates paid US$70 million for the stake in SriLankan, its only investment in another carrier.
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