Sri Lanka Aviation

**dramirez** · 13-11-2014, 06:35 PM

Originally posted by ejanson65

This is what happens with the wrong people in charge. You can't get the right result with the wrong people!

A company culture of impunity and zero accountability - you reap what you sow!

Read the annual report - it's all there.

Losses $247 million ($676,000/day). Fuel costs decreased yet the losses increased.

Even with:-

-Operating into HRI with no passengers
-Presidential flights
-Subsisdising Mihin Lanka
-New aircraft orders

that still does not account for these losses imho.

There is a chart in the annual report that shows how the losses have increased dramatically since the government took over.

If they were really going to breakeven you would see a reduction in losses. The truth is this Airline will never make money.

The only way forward is bankruptcy. These losses are not sustainable.

If you read the annual report you will see that they had to cash a bond and they took a loss when they did this. The only reason they would do this is because they needed money to operate and this was their only source. It shows how close to the edge of the cliff they are.

Both Kapila and Nishantha are defending this sad state of affairs in the annual report - disgraceful.

You can ignore anything these people say - just more lies in the skies!

The annual report has not even been discussed in the Sri Lankan press as far as I can tell.

Between now and the end of the year a large group of Pilots will be leaving - these are the best and the brightest. These are the people you will need in the future if you want to expand.

Forget about any new routes - there's no money.

I'm not sure how much longer this can continue - I'd be surprised if they make it through the end of 2015.

Things should never have been allowed to get to this point - there needs to be some accountability!

I can't see it changing anytime soon - current management will continue with their head buried in the sand. Or at least certain individuals will continue with their pet airline project.

The sad thing is that most of this loss gets paid for by the taxpayer. A significant majority of whom are not able to afford such luxuries as plane travel.

**slaviator** · 14-11-2014, 01:41 AM

Originally posted by flylanka

A few points from me: 1. Cut of ties with Mihin Lanka, passengers being loaded on MJ tickets is ridiculous. 2. Do a proper Route Profitability and Yeild Optimisation exercise, I believe there are some routes that UL prices for J/C class are too low. With upgraded hardware on A330-200/300 a definite premium can be charged. 3. Staff utilization analysis. Is UL overstaffed? 4. Split UL into well managed sub units i.e. Catering, Cargo etc (I believe this is already done.). Manage each sub division as a independent profit centre and Cash Generating Unit (CGU). 4. Explore possibility of connecting AUS to UK. SL is strategically placed. Anyone can fly from AUS to UK and use CMB as a hub.. splits the journey nicely into two nice 10 and 11 hrs segments. 5. Optimise Cargo Market. 6. Promote SL/UL stopover holidays. 7. UL management structure ( I am not going to elaborate more on this.).

Flying to Australia directly is not going to solve much! There isn't enough demand throughout the year! Possible if they touch over in Singapore or Bangkok. Even Qantas is dramatically reducing services to Europe and I don't see how Sri Lankan is going to do any better! Malaysian and Singapore Airlines are struggling as well cutting down seats for most times of the year. It's very hard to break the Middle Eastern stranglehold dominated by Emirates!

Yield premiums can be added once there is consistency across the fleet in terms of product offered not with the various different configurations currently available.

As for Mihin yes it needs more planes and services to get into the black but its doing a wonderful service connecting SriLanka to markets such as Dhaka, Jakarta etc. which would never happen otherwise. There is plenty of transit traffic from these destinations. This is very similar to Thai Smiles and Thai Airways offering to Colombo (when there is high demand, switch the product). Sri Lankan would even be worse off without the transit traffic.

As for the pilots that are going, it may happen and everyone is free to choose. A Qantas A380 pilot earns close to 600,000 AUD a year for example but the prime minister of Australia earns 480,000 so yes there will be disparity in the offerings by different employers. It's a free market so you can't stop it! some of the most senior Air Lanka pilots (Elmo Jayawardena) joined Singapore Airlines in the 1990s, but it didn't lead to there being no pilots left in Sri Lankan to takeover. It's a cycle and there will be people moving in and out.

**slaviator** · 14-11-2014, 01:46 AM

Originally posted by ejanson65

It is overly simplistic to compare UL to other Airlines imho.

You don't see aircraft being used like 3-wheelers, routes flown determined by politics not economics and an appointed management of unqualified yes-men at other Airlines.

The results are predictably disastrous - it's like watching a train wreck in slow motion.

A bit late for an investigation at this point imho - what is needed is an independent financial investigation. Wishful thinking on my part - I know it will never happen.

GOSL is out of money. EPF/ETF is their last source of funds. This is pretty serious stuff - after this money has been pissed away millions of Sri Lankans will have lost their retirement savings. Since they are behind in their accounting this may already be the case.

Based on the published loan figures and the losses from UL's own financial reports - UL will run out of money by the end of the year. Bankruptcy is inevitable at this point imho.

What I don't understand is why UL was able to join OneWorld given their financial position.

The real tragedy is that most of this could have been avoided - I'm convinced UL could have been a profitable Airline.

There needs to be accountability - the present culture is one of impunity and zero accountability.

My present Airline is the complete opposite of UL - privately owned and run like a business with people who know what they're doing.

Well you've been predicting bankruptcy for 2014! Now 2015 and Next year 2016?

**randeer** · 14-11-2014, 03:54 AM

as i have heard the new 330 have no center fuel tank and the pay load which can carry is lower. it easily get restricted and can't get full revenue from it as i hope. Don't know why they decided to get this kind of aircraft instead of a one with which can get maximum usage.

**anthonylk** · 14-11-2014, 10:33 AM

Originally posted by randeer

as i have heard the new 330 have no center fuel tank and the pay load which can carry is lower. it easily get restricted and can't get full revenue from it as i hope. Don't know why they decided to get this kind of aircraft instead of a one with which can get maximum usage.

Well this version is more fuel efficient than the previous one.

http://www.airbus.com/aircraftfamilies/passengeraircraft/a330family/a330-300/

**Serendib** · 14-11-2014, 04:19 PM

Mihin Lanka is earning profits

Error: 404 Page not found

http://www.news.lk/special-coverages/budget-2015/item/4151-mihin-lanka-is-earning-profits

**banuthev** · 14-11-2014, 08:43 PM

Originally posted by MalaysiaMustafa

Nice Pic. By the way MJ 4R-MRD is not in service for past two days. Any reason?

4R-MRD is back in service today and it's operated on CMB-DAC-CMB-BAH-CMB.

Btw Air India has increased the MAA-CMB flights from 6 to 7 weekly. Any possibilities Jet Airways resuming flights to Colombo from Chennai?

**Speedbird** · 14-11-2014, 10:38 PM

Originally posted by Serendib

Mihin Lanka is earning profits

http://www.news.lk/special-coverages...arning-profits

not sure where the profits are coming from

Page not found – The Island

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=114171

Daily English Language Newspaper in Sri Lanka

Page not found – The Island

http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=114161

Daily English Language Newspaper in Sri Lanka

**ejanson65** · 15-11-2014, 09:08 AM

Originally posted by randeer

as i have heard the new 330 have no center fuel tank and the pay load which can carry is lower. it easily get restricted and can't get full revenue from it as i hope. Don't know why they decided to get this kind of aircraft instead of a one with which can get maximum usage.

Even the A340 is payload restricted to London in the winter months. This flight can be as long as 12 hours.

When I flew this route it was normally planned as a re-dispatched flight.

Flight was filed as CMB-LHR. Paper Flightplan was CMB-FRA with an extra section from waypoint SUBES to LHR.

If we had enough fuel at SUBES we would continue on to London. Otherwise we would need to divert to Frankfurt.

Re-dispatch saved about 1200kg in contingency fuel - allowing a higher payload.

This flight was frequently too heavy to re-dispatch eastbound (it would be above max landing weight if it diverted to Bangalore).

**Serendib** · 15-11-2014, 03:25 PM

SriLankan Airlines and the Airline's Aircraft Technicians' Association (SAATA) signed a collective agreement recently for a period of three years. The agreement recognizes the importance of enhancing productivity when the national carrier is stepping into a new era of world travel with its extensive wide-body fleet renewal programme, initiated last month. At a time when the Airline is aiming at improving its operational efficiencies, services and product offering to provide a more luxurious travel experience to its passengers, the Agreement recognizes the importance of enhancing productivity and appreciates the efforts extended by Aircraft Technicians towards taking the Airline forward. SriLankan Airlines perceives this agreement as a symbolic gesture that signifies the unwavering bond that the Management has forged with its workforce which will progressively contribute to the company's future expansion plans and while motivating all employee groups to work towards the Management's slogan, " Working together and winning together."

http://www.colombopage.com/archive_1...16032853CH.php

Wow good news! hope they will give good maintanance for all fleet!

**banuthev** · 15-11-2014, 06:58 PM

Transaero launched nonstop flights on Moscow-Colombo onboard B767-300 from today.

**umedhah** · 15-11-2014, 07:05 PM

Originally posted by banuthev

Transaero launched nonstop flights on Moscow-Colombo onboard B767-300 from today.

Looks like this is a seasonal flight?

**banuthev** · 15-11-2014, 07:31 PM

Originally posted by umedhah

Looks like this is a seasonal flight?

Yeah umedha, looks like it's a seasonal flight planned to operate on 15/11, 25,11, 5/12, 16/12, 26/12, 06/1, 16/1, 28/1, 06/2, 17/2, 27/2, 10/3, 20/3. These flights are operating on Tuesday and Fridays departing from Demodedovo 21:30 and landing in Colombo 06:00 (UN9541) on Wednesdays and Saturdays. The Return flights are departing on Wednesdays and Saturdays from Colombo 07:30 (UN9542) and landing in Demodedovo 16:40 on the same day. I heard last winter Transaero flew some charters to Colombo as well as Mattala.

Pic : https://fbcdn-sphotos-a-a.akamaihd.n...4633083368a04e

**umedhah** · 15-11-2014, 07:38 PM

Originally posted by banuthev

Yeah umedha, looks like it's a seasonal flight planned to operate on 15/11, 25,11, 5/12, 16/12, 26/12, 06/1, 16/1, 28/1, 06/2, 17/2, 27/2, 10/3, 20/3. These flights are operating on Tuesday and Fridays departing from Demodedovo 21:30 and landing in Colombo 06:00 (UN9541) on Wednesdays and Saturdays. The Return flights are departing on Wednesdays and Saturdays from Colombo 07:30 (UN9542) and landing in Demodedovo 16:40 on the same day. I heard last winter Transaero flew some charters to Colombo as well as Mattala.

Pic : https://fbcdn-sphotos-a-a.akamaihd.n...4633083368a04e

Thanks Banu

**randeer** · 16-11-2014, 04:23 AM

Originally posted by ejanson65

Even the A340 is payload restricted to London in the winter months. This flight can be as long as 12 hours.

When I flew this route it was normally planned as a re-dispatched flight.

Flight was filed as CMB-LHR. Paper Flightplan was CMB-FRA with an extra section from waypoint SUBES to LHR.

If we had enough fuel at SUBES we would continue on to London. Otherwise we would need to divert to Frankfurt.

Re-dispatch saved about 1200kg in contingency fuel - allowing a higher payload.

This flight was frequently too heavy to re-dispatch eastbound (it would be above max landing weight if it diverted to Bangalore).

So this 4R-ALL is not a bad choice from the management?

Sri Lanka Aviation

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