SRI LANKA. National carrier SriLankan Airlines is set to commence in-house operation of its inflight duty free business, following the ending of the concession held by Duty Free Partners (DFP).
A spokesman confirmed to The Moodie Davitt Report the decision to take the operation in-house. He declined to comment on a Sri Lankan media report saying that DFP had been granted an enjoining order in the Commercial High Court preventing the airline from “terminating” the contract while the case is being heard.
The report claimed the agreement, which expired on 31 March, contained a two-year extension on a mutual consent basis and that DFP should have enjoyed “the right of first refusal”.
While being unable to comment on the legal issue, the spokesman commented, “SriLankan Airlines decided to run the programme in-house, ourselves. That’s as normal and everything is in order.”
The local media report was incorrect in stating that a five-year contract with a new supplier was to have started this month, the spokesman said. “We are going to run the programme completely in-house by SriLankan Airlines as we used to before… without involving any other party.”
