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  • Analysis: SriLankan Airlines set to join oneworld in 2013. Will SriLankan Airlines entry into oneworld force a change in the carrier's network strategy?

    SriLankan Airlines is set to be announced as the newest member of the oneworld, the global alliance of airlines. The carrier, which serves 60 destinations on a fleet of 21 aircraft, will add Kochi, Tiruchirapalli and Thiruvananthapuram to oneworld’s network of 850 destinations in 150 countries.

    Sri Lankan’s entry into oneworld is being sponsored by Cathay Pacific, which serves SriLankan’s hub in Colombo 7 times per week from its own hub in Hong Kong via Singapore and Bangkok onboard Boeing 777-300 aircraft. SriLankan Airlines also has a code-share agreement with oneworld member-elect Malaysian Airlines and plans to implement code-shares with oneworld members Royal Jordanian and S7 Airlines. The carrier will enter the alliance in 2013.

    "With the world airline industry increasingly focused on alliances, SriLankan has carried out in-depth analysis of the options open to the airline as we enter this latest phase of our development. Oneworld is very clearly the best option for us. Joining the alliance will help put SriLankan more firmly on the global aviation map and vastly improve our connections with the rest of the world," says airline chairman Nishantha Wickremasinghe.

    For SriLankan, there is clear value added with entry into oneworld. The carrier already serves 3 Oneworld hubs; Tokyo, Moscow, and London and is rumored to be starting up service to 2 more; Sydney and Melbourne. Now, it will have access to the global alliance’s network and its marketing arm, which can help it win more passengers away from competitors, and add incremental sales revenue. Its frequent flyer base, limited as that may be, will also get expanded redemption opportunities around the globe.

    Oneworld frequent flyers will now have many more redemption options, especially to Colombo and Male (where Sri Lankan operate a whopping 38 flights per week). But I do think that entrance into oneworld will necessitate some changes in SriLankan’s network. For a long time now, oneworld has had substandard coverage of India. While its European connections are competitive, both SkyTeam, and especially Star Alliance have taken advantage of hubs located in regions with strong ties (Saudi Arabia and Singapore/Bangkok respectively) to strengthen their reach within India’s second and third tier cities.

    SriLankan currently serves 7 Indian destinations; Bangalore, Chennai, Delhi, Mumbai, Kochi, Tiruchirapalli and Thiruvananthapuram. To add more value into oneWorld, look for SriLankan to also add (in some cases restore) flights to regional Indian destinations like Hyderabad, Mangalore, Vijaywada, Kozhikode, and Pune. Doing so would substantially increase SriLankan and oneworld’s penetration into the Indian market.

    However, to take full advantage of this would also necessitate a restructuring (moderate) of SriLankan’s longer haul operations. Currently, the carrier serves Tokyo 4 times per week, and London 7 times per week after cancelling 4 weekly service via Male, as well as twice weekly services to Moscow via Dubai on an Airbus A320. Reportedly, SriLankan is looking to add 9 further long-haul aircraft to the fleet by 2015; a mix of Airbus A330-300 and Boeing 777s.

    What this would allow is for SriLankan to enhance its long haul operation to better fit in with oneworld. London could be buffed up back to 12 flights per week (its level this summer), Tokyo could be made daily, and Moscow could be de-coupled from Dubai. The airline also has leeway in adding new sub-daily services to oneworld hubs like Berlin, Dusseldorf, Madrid, and the like. Thus in time, SriLankan Airlines’ network will likely shift to become a stronger asset for the oneworld alliance.

    Will SriLankan Airline’s entry into oneworld force a change in the carrier’s network strategy? Image courtesy Wikimedia Early Monday, SriLankan Airlines, the flag carrier of India’s sou…

    Comment


    • Originally posted by Banuthev View Post
      IMO, UL operating A320s on CMB-BKK-HKG is a bad idea and they better look at flying nonstop to HKG with A330s. Btw, When I met a CX-staff in BOM few weeks ago, he told me that CX is planning to fly nonstop to CMB in 2013/2014 when UL join the Oneworld.

      Any idea why UL is keeping aircraft on ground most of the time - https://fbcdn-sphotos-c-a.akamaihd.n...91564820_n.jpg

      I have been to this website but I unable to find the information about Sri Lanka-Turkey's frequency/capacity entitlement.
      No A320 did op to HKG per what I know.
      The answer to your second question is, a/c need to come down to connect pax and make a hub bank. :-)
      The opinions above are solely my own and do not reflect those of my employer or clients

      Comment


      • Originally posted by Kflyer View Post
        No A320 did op to HKG per what I know.
        The answer to your second question is, a/c need to come down to connect pax and make a hub bank. :-)
        @ Kflyer - In the picture, I can see entire UL A340s fleet parked in the airport tarmac. Why these birds are not using airbridges ? When I fly from CMB-BOM last month, I found three airbridges were empty but airport bus took us from the terminal building to the flight (UL141) which was parked on the apron.

        Will SriLankan Airlines entry into oneworld force a change in the carrier's network strategy?
        Definately UL network will change in order to support the Oneworld Team. As MH & QR also join OW, UL has difficult chance to do better on Australia and Europe routes. It'll be better if UL concentrates on expanding their network in South Asia, Africa, Far East, Orient and Middle East. IMO, UL should have fleet like 3xB777s, 6xA333s, 7xA332s and 8xA320s in 2015.

        Comment


        • Originally posted by Praetorian View Post
          Haha well said.

          We keep being told how "great" it is that both UL and MJ are "run together" and what a genius plan has been invented. Then we get comparisons to other airlines.

          The fact is other airlines are RUN PROPERLY as actual businesses. They are run professionally and properly not at the whims and fancies of inexperienced morons who have got positions because they are connected to the Government in power. You do not see profits stolen, free flights given to various stooges, aircraft "stolen" for special jaunts and the management living luxury lifestyles at the airlines expense. You do not also see staff unpaid and treated badly where those who actually care and have ideas for betterment are crushed and bullied while various "favourites" get pushed ahead.

          Furthermore other airlines have to make cuts etc because they are not being kept afloat by the tax payer all the time.

          The reality is UL is not managed properly or professionally. Mihin is a flying JOKE. A so called “budget airline” that is not run like a budget airline which is also eating away at the credibility and quality of UL.
          And seriously are people such ugly sycophants that the only reason they are keeping Mihin around is because it has the Preso’s name and thus do not want to “upset” him/seen to be insulting him by scrapping it? Whats up with this "worship the bigshot" culture? If Mihin was scraped MR would not care or be "hurt" by such a move.
          The Future of SriLankan Airlines as an Emerging Force in South Asia - http://www.iata.org/events/Documents...South_Asia.pdf (IATA)

          Comment


          • Airbus buy backs A340s. What will be the SriLankan Airlines Strategy?

            SIA's new airplane order, which includes the buyback of five A340-500s by Airbus, is detailed in the company's news release:

            SIA's decision to dump the A340s addresses a financial drag. "It is widely known in the industry that SIA's A340-500 non-stop flights are unprofitable, because of the four-engined aircraft's higher fuel burn"

            SIA says the removal of the A340s means it will no longer have an aircraft type in its fleet with "sufficient range and operating economics"

            Singapore Airlines will terminate ultra-longhaul nonstop flights to Los Angeles and Newark in late-2013 after Airbus agreed to buy back the carrier's five...


            http://www.scpr.org/blogs/news/2012/...continued-sin/

            Comment


            • Originally posted by Max View Post
              Will SriLankan Airlines entry into oneworld force a change in the carrier's network strategy?
              not yet.. after Feb I guess..

              Comment


              • SIA buyback
                Remember - this is ultra long range A340-500 with J class only configuration. SIA as well as Thai operating direct flights from SE Asia to North America with these birds but routes are apparently not making money (due to reduced payload and high fuel burn). Airbus must have done a deal with SIA to sell a newer a/c so that they can re-sell 345's or use them for parts. I think UL's aging 343's are not that attractive for trade-in. In fact Boeing recently purchased old A346's from China Eastern to secure a deal but the residual value of ADA/ADB/ADC may not be that attractive.

                Comment


                • CalgaryLankan: you see, an airline like PR, can confidently raise enough backing to purchase 777-300 ERs, and they bread and butter is the US route, and see their route map - not much at all into Asia. If you leave out South East Asia, they are not heard of anywhere, except ME .. and in ME, they are competing stiffly with Saudia with it's 747s and QR and EK and all else, cashing on the OFW market .. and still they are making $ or atleast enough to convince investors to park $

                  And even TAM, they picked up 345's as they came cheap and did help their flights to LHR and elsewhere .. maybe not the most fuel efficient way, but well, when you have loads, you can loose a bit on fuel ..

                  What Ails UL ? Does it have enough clout to attract private investors ? oh wait, who wants to invest in a venture where you can possibly never see your money again ??

                  I wouldn't want to get into any argument, but those who say we must pick up A345s, 772Ls and 773L, well, SHOW ME THE MONEY

                  again, as I wrote elsewhere, BLR is privately owned and managed, why couldn't SL do the same ? Investors park money where they know it will be safe, and returns guaranteed .. not where things can go haywire if somebody wakes up on the wrong side of the bed ..

                  Peace
                  Last edited by ecureilx; 05-12-2012, 07:02 AM.

                  Comment


                  • Originally posted by ecureilx View Post

                    ...What Ails UL ? Does it have enough clout to attract private investors ? oh wait, who wants to invest in a venture where you can possibly never see your money again ??

                    I wouldn't want to get into any argument, but those who say we must pick up A345s, 772Ls and 773L, well, SHOW ME THE MONEY ... Investors park money where they know it will be safe, and returns guaranteed ...... not where things can go haywire if somebody wakes up on the wrong side of the bed .. Peace
                    @ecureilx...Somehow this make sense...

                    @Klfyer any update on this? http://www.dailymirror.lk/business/o...ir-links-.html did THY apply for Dept. Civil Aviation & any update on KE

                    Hi All getting ready for a long flight...heading towards an island off the coast of India for four weeks; any tips?
                    Last edited by Speedbird; 05-12-2012, 08:22 PM.

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                    • SriLankan Airlines increases flights to Riyadh

                      SriLankan Airlines to introduce three more flights to Riyadh there by increasing the total number of flights to five per week effective from December, 13, 2012.

                      The increased frequency would facilitate enhanced outbound travel from Saudi Arabia to Colombo with convenient connections to several cities in India and Far East.

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                      • Turkey Sri Lanka direct air links soon

                        Turkey is in discussions to strengthen air-links with Sri Lanka as a precursor to improving bilateral trade between the two countries, according to visiting Turkish Ambassador, Serpil Alpman.

                        “We also believe that direct air-links between Turkey and Sri Lanka can assist in strengthening current bilateral trade volumes in a considerable way. I am pleased to say that official discussions to establish direct air-links between Turkey and Sri Lanka are currently on-going at higher levels,” Alpman said.

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                        • Mihin lands madurai .

                          Only 24 hours more to get boarding pass to madurai from colombo.
                          And great success that first intl flight touches ixm.
                          Thanks
                          MIHIN LANKA
                          Good day,
                          athisaravanan
                          madurai.

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                          • Mihin Lanka in Madurai

                            Mihin Lanka commenced its flight operations from Colombo to Madurai on Friday.



                            Setting the tone for a busier air space over Madurai in the coming days, Mihin Lanka, the domestic airlines of Sri Lanka commenced its flight operatio








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                              • 4R-ALD has been AOG in PEK. 4R-ALH will join UL fleet after undergoing cabin upgrade..

                                I just confirmed with our fleet watch there no flight operated as 498. But ADA has operated 898 on 30th..

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