The Government owned budget airline "Mihin Air" expects to commence operations in February next year, CEO Sajin Vass Gunawardena said. The main objective of establishing "Mihin Air" is to facilitate migrant workers and cater to the tourism industry as a low cost carrier.

Normally migrant workers need to pay a large amount of money, equal to three months salary for the air tickets.

Mihin Air is aiming to bring this down to one month's salary.

"Through Mihin Air we expect to promote Sri Lanka as a tourist destination specially among Indian tourists," he said. The budget airline will initially fly to the Middle East and South Asia. The Far East and other destinations will be covered in the future.

"In the initial stage we expect to deploy one aircraft and add another one after three months.

The company has identified the passenger aircraft and we are still on negotiating," he said.

Setting up the budget airline will cost Rs. 750 million and the total will be Rs. 1,500 million. The Government expects to inject money for project through Government agencies and a commercial loan. The company is confident of raising the total investment for the project, he added.

The project will create nearly 500 jobs directly and indirectly. The airline expects to link with the Enterprise Development Ministry to promote ancillary services among local enterprises.

Mihin Air has received over 4,000 applications when they called for applications to recruit the staff and interviews will be handled by the independent penal to select the best for the staff.

The company will invest on training their newly recruited staff. The new airline will also focus on candidates from outstations.

Travel agents will be the major source in attracting business to the budget airline and we expect to work closely with them, he said.