‘SriLankan in fresh effort to turn around in 3 years

SriLankan Airlines would be turned around and be made a profit making institution in three years, said new Chairman of SriLankan Airlines Ranjith Fernando.

Speaking to media after assuming office he said that this is a very tall order since the airline is saddled with huge debt of US$ 750 million and several other issues. “The airline is overstaffed by over 2,000 and top of it have to pay heavy interest for aircrafts that are not required for the airline. The rising oil price too is a concern.”

He said that they will speak to the unions and other stakeholders and look at ways to shedding away excess staff and a golden hand shake too may be on the cards.

A banker by profession he said that one of the priorities of the airline would be to cancel the contract for four new A350 aircraft and a top international legal team is negotiating it.

However the airline also has several positive factors which can be fine tuned to make the airline profitable.

“One such is the Colombo Melbourne route which has a nearly 100% seat factor.”

“We are also studying the re-structuring plan that is being offered to us.”

Board Member Susantha Katugampola said that Sri Lanka’s strategic geographical location too is a positive factor that can be converted towards making the national carrier a profitable one. Board Director, Mano Tittawella who is also the Senior Advisor to the Minister of Finance said that turning around SriLankan is a difficult task but they would do it. “We cannot expect anymore ‘handouts’ or ‘dole” from the government to fund the airline.”

Meanwhile Chairman of Sri Lanka’s National Public Private Agency Thilan Wijesinghe said that negotiations to sell a stake of SriLankan Airlines also failed as the ‘bidder’ did not see any value in taking over SriLankan. “If we are to negotiate successfully the airline structure has to improve and this is what is currently done.”

The new Board including Dr. Roshan Perera and Air Marshal Kapila Jayampathy also said that they would be working in an honorary capacity and would not seek a salary or any other perks until such time the airline is turned around.