Sri Lanka suspends joint venture at ‘the world’s emptiest airport’

Many governments, national, regional or local, have good intentions when it comes to the construction of airports. Theoretically, they will improve the economic prospects of a region.

But all too often they turn out to be white elephants unable to attract commercial airlines. Spain has some good examples.

In Sri Lanka the same appears to be happening, with the Indian Airports Authority reported to have been frozen out of a joint venture with the Sri Lankan government to develop the new Mattala airport. That is surprising, because politically it is in India’s interests to assist with developments like these and, at the same time, keep China out.

Summary:

• Airports Authority of India (AAI) was expected to acquire majority control and operation of Mattala Rajapaksa International. Airport in Sri Lanka but the JV deal has been ended.
• India’s interest may have political drivers and could be based around China’s growing influence around the subcontinent.
• Mattala Rajapaksa airport opened with several airlines committed to service there, but currently has only very limited scheduled domestic operations.

View more here: https://centreforaviation.com/analysis/reports/sri-lanka-suspends-joint-venture-at-the-worlds-emptiest-airport-531746