Annual Report 2010 - Ministry of Finance and Planning

Ministry of Finance and Planning Sri Lanka > Annual Report 2010Mihin Lanka (Pvt) Ltd(MLL)MLL filled the vacuum in theSriLankan air travel industry byintroducing a low cost carrierthat offers alternate, safe andaffordable commercial airtransportation to mass travellers ofthe region.MLL expanded its operations toKuwait, Bodhgaya and Varanasi froman initial route network of Dubai andTrichy, and new destinations of Dhaka,Male and Jakartha have been added.The government has encouragedMLL to restructure its balance sheetfacilitating future expansion andcoordinate with SLA to improveprofitability of both airlines thoughSLA concentrating more on globalnetwroks and Mihin working on theregional routes supplementing lowcost travellers.By 2010 MLL reduced its number ofemployees from 236 in 2008 to 153by 2010, reducing its operationalcosts and improving productivity.Table 4.24 > Key Performance Indicators of Mihin Lanka (Pvt) LtdUnits 2005 2006 2007 2008 2009 2010RevenueRs.Mn- 2,570 373 1,700Total Expenditure Rs.Mn 195 4,970 1,080 2,488Gross profit/Loss Rs.Mn (195) (2,400) (707) (728)Net profit/Loss before Tax Rs.Mn (195) (3,161) (1,300) (1,221)Cost of Employment Rs.Mn 15 135 118 107Capital Expenditure Rs.Mn 24 29 2 5Non Current Assets Rs.MnWas not in operation23 39 55 38Current Assets Rs.Mn 381 264 386 482Non Current Liabilities Rs.Mn 550 304 2,759 3,541Current Liabilities Rs.Mn 599 2,805 2,089 (2,606)Equity as at the end of the year Rs.Mn (195) (2,608) (4,406) (5,628)No of Employees Nos 72 238 154 151Employment Cost per employee Rs.Mn 0.21 0.54 0.79 0.71Source: Mihin Lanka (Pvt) Ltd227