SriLankan on strategic plan for profitability
Sanjeevi JAYASURIYA
CEO Kapila Chandrasena
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SriLankan Airline while playing the important role as the national
career and supporting the national economy will embark on a pathway to
enhance both top line and bottom line in keeping with its five year
strategic plan. “We see a huge growth opportunity in Asia. All market
indications by International Air Transport Association (AITA) point out
Asia being the future in the aviation industry. We are well placed to
exploit the emerging opportunities,” SriLankan Airlines Chief Executive
Officer Kapila Chandrasena told Daily News Business.
“There is a strong co-relation between growth in population and gross
national income. Our neighbouring countries China, India and Indonesia
are in the growth phase of this circle. Our business plan is to target
these countries to realize country’s aspirations,” he said.
The rapid fleet modernization efforts and to increase the fleet from
14 to 23 aircraft under the five year plan which at present stands at 21
will support rebuilding efforts. The additions will be of brand new or
near new aircraft which gives the leverage in replacing old fleet. Two
more will join within next month.
With the expanding fleet airline will also focus on network expansion
where there are future opportunities concentrating on direct
connectivity.
“Our strong focus will be on Asian countries especially China, India,
Indonesia and Far East Asia. The efforts to achieve 2.5 million tourists
will supplement our business drive. We are looking at strengthening the
number of flights and destinations. However, due to economic slow down
in Europe measures will be taken to scale-down operations to minimizing
losses,” he said.
SriLankan Airlines has taken many initiatives despite testing times
and where profitability is concern we are moving on with our plan. It is
making a loss mainly due to the fuel crisis which is not limited to the
aviation industry. There had been a 30 to 40 percent increase in
aviation jet fuel where fuel cost accounts for 50 percent of the
operational cost.
“As a nation we are still not oil rich and we depend on imports
resulting in relatively high losses. We will take possible measures to
minimize the impact. Modernizing the fleet to have twin engine aircraft
will be a key step in this direction where it give fuel burning saving
of 15 to 20 percent.We have shift our focus from bottom line only
approach to two facet top and bottom line approach. We will
progressively track the movements and take necessary action as per
business plan. The recent upgrading will boost the income from the front
cabin as the total product on offer will given a new look in an enhanced
cabin ambience.
“The destinations and frequency will be depended on a stringent
selective process. While the key focus will be on Asia including India
to expand we also will reduce capacity to Europe especially London
operations will be streamlined,” he said. |