SriLankan makes operational profit
Route, Fleet expansions on the cards:
Shirajiv Sirimane in Arugam Bay
SriLankan Airlines is now making operational profits and this trend
would continue said SriLankan Airlines Chairman Nishantha Wickramasinghe.
Speaking at the Pro Surf Championships here he said that one of the main
reasons for this is the ‘oil factor’ which is at manageable levels and
also prudent management tools that were implemented recently.
Chairman Nishnatha Wickramasinghe
in Arugam Bay |
He said at times they were purchasing fuel at around $ 140 a barrel
and today this has come down to an average of around $ 100 which he said
was good.
He said the airline is also maintaining 89% cabin factor which too
has helped the airline to make operational profits. “Globally, the
airline industry operates on thin margins.” said the Chairman and
identified China, the Far East and India as their best routes.
He however admitted that they still have to repay several overdue
loans and this is putting a check on their overall profits.
Chairman said that they need to operate to more destinations which in
return would bring down the ‘unit’ cost of the airline.
“This was the reason we added Moscow to our network and additional
destinations in China. We are also looking at South Korea and Australia
and would add frequency to current destinations,” Wickramasinghe said.
Commenting on their future financial plans Wickramasinghe said that
they would add four new narrow bodied aircraft to their fleet by end of
next January. The Cabinet recently approved US $ 500 million to increase
the fleet of aircraft of SriLankan Airlines from 17 to 23 within the
next five years.
In addition the national carrier would also retire some of the aging
aircraft and look at maintaining a fleet in the average of five years.
“We want to maintain 2/3 ‘leased’ and 1/3 ‘owned’ model,” he said.
Commenting on the staff he said that the airline increased the cabin
crew from 600 to 900 and is planning to have 70 to 80 percent local
pilots. Currently this is at a mix of 50 percent.
The Chairman also spelled out plans to refurbish the current fleet
with new seats and interior decor adding more luxury to the fleet. “We
would invest US $ 40 million for this from own funds,” he disclosed.
The Sri Lankan government bought back the 43.6 percent stake Emirates
Airline held on SriLankan for US $ 55 million last year. During the time
no capital infusion were to improve the SriLankan Airlines.
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