Lanka’s economy resilient

- Airarabia Country Manager:

Hiran H. SENEWIRATNE

Sri Lanka’s infrastructure facilities are improving but the biggest concern is the security situation in the country, said Airarabia Country Manager Mirza Sajid Khan.

He said that the current war situation and security concerns discourage many people from visiting Sri Lanka especially from the European Union countries.

Therefore, the government must take a firm decision to find a durable solution for the country to achieve rapid economic growth.

Khan said that Sri Lanka could do better if peace and harmony is established in the country immediately as despite all odds Sri Lanka’s economy is resilient to any external and internal pressure in the Indian Sub continent.

He also said that the strategic geographical condition and high literacy rate would help the country in its forward march by establishing normalcy in the country.

Q: How would a low cost airline impact from the global recession?

A: The Economic recession/global financial crisis is a self-made problem and the respective government’s have forgotten to give an eye to the people’s needs and wants.

USA and European Union countries are badly affected as a result.

But economies in the Indian subcontinent are robust and strong.

Therefore, Indian and Sri Lankan economies are strong which is a great achievement.

However, with the current economic turbulent condition the Airline industry is badly hit.

In this current scenario a low cost airline will have many opportunities to capitalize as we have an excellent business model that could face any challenge in the event of any change.

We have 100 per cent load factor.

Q: We know that low cost airlines are getting popular in many countries. How would Airarabia differentiate among the other airlines?

A: We have an excellent business model which has really worked for the company in Sri Lanka and overseas. Our airline fares are very affordable and quality in service. We have brand new Airbus 320, 162-seat carriers.

In our aircraft we have more leg space, multi-lingual crew, lovely seating experience and many more. Our business model fits the market conditions and are also accountable.

Q: What are your future plans for the Arabian Airline per se?

A: We have been flying to 44 destinations and operate with a fleet of 16 Air craft. We have 49 A320 aircraft in the order book. We have already signed agreement and the first plane will be diliverd in March. We also bought a new airline from Morocco which will start in March as Air Arabia Morocco. We are hoping to go to European destinations in the future.

Q: Any plans to increase the frequency in the future in Sri Lanka?

A: Sri Lanka is a lucrative and attractive market. We have daily flights to Sharjah from Colombo and two flights on Sunday. One of the problems in Sri Lanka’s operations is that local ground handling charges are high. If the airport authorities could reduce the ground charges we could bring more traffic to Sri Lanka.

At present we bring 6,500 passengers and we could increase it up to 10,000 if ground handling charges drop. Many Europeans use our airline from the Middle East for holidays and housemaids. Many Sri Lankans travel from the Middle East to go to Sharjah to come to Colombo which is a good business model.

Q: Sri Lankan operations have improved considerably during the last several months. Is there any particular reason for that?

A: Yes, we tied up with local tour operators and also positioned Sri Lanka as a tourist destination.

We looked at the brighter side both ways. Apart from that our General Sales Agent, the Nawaloka Group was very supportive. Due to these developments in 2007 our station improved in the whole network where our airline operates.

Q: Airarabia is getting popular in Sri Lanka and during the past few months it became very profitable and there was a major turnaround. How did you manage to perform that well?

A: Our model is different compared to other low cost airlines.

We are catering to different segments in the market. Our routes are quite profitable and we always welcome healthy competition and our company’s Chief Executive Officer (CEO) Adel Ali is one of the best CEOs in the world.

We always strategically plan our business to make it more profitable.

The reasons for this sudden turnaround were leadership, adopting the appropriate business model, and belief in the staff.

Q: How would the currency fluctuation impact on the airline industry?

A: Every government needs to evaluate this issue carefully. But we do all our transactions in Dirhams, which is quite strong and robust at present.

Certain hard currencies such as the US dollar and the Euro tends to fluctuate which compelled them to adjust their plans.

Q: What are the places you would like to visit in Sri Lanka?

A: Sri Lanka is a beautiful country. I wish I was born here. I love the culture. I have visited Kandy, the South and several other places.

I hope to visit Adams Peak one day which I admire for its historical value. This country is modern and modest in culture.

I live with my wife and three-year-old daughter in Sri Lanka.