Sri Lanka Aviation

4R-ALJ is flying again.

Move to revive SriLankan Airlines takes off once again

Comments / 2300 Views / Saturday, 21 December 2019 01:30

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Minister Prasanna Ranatunga insistent that the company be brought back to its previous standard
New SriLankan Airlines Chief Pathirage has turnaround plan already
Minister orders to explore possibilities of providing more opportunities for local businessmen in tender procedure
SriLankan Airlines’ operational loss in FY18/19 was Rs. 116 b and total loss for the 10-year period 2009 – 2019 was Rs. 240 b; carrier was making progress in new financial year




By Charumini de Silva

The quest to revive the loss making national carrier SriLankan Airlines commenced week with Aviation Services Minister Prasanna Ranatunga directing officials to draft necessary proposals.

The Minister was insistent that the national carrier be brought back to its previous standard of excellence, by introducing best practices thereby transform it to be financially viable and a top-class airline in the region.

According to the Committee on Public Enterprises (CoPE) the operational losses of the Airline in FY19 amounted to Rs. 116 billion and the total loss for the 10 year period 2009 – 2019 was Rs. 240 billion though in the current financial year the national carrier has made progress to reduce losses.

The Minister earlier this week held a meeting with the newly-appointed SriLankan Airlines Chairman Ashok Pathirage and other key officials of Civil Aviation and Tourism.

The Minister directed the officials to identify the main reasons for the nosedive of the airline that incurred colossal losses and outline solutions and procedures that can be implemented immediately in the short- to medium-term, while the long-term proposals are being drafted simultaneously.

The meeting was convened to discuss the relevant plans and programs entrusted to the Tourism and Aviation Services Ministry under the National Policy Framework ‘Vistas of Prosperity and Splendour’ of President Gotabaya Rajapaksa.

SriLankan Chairman Ashok Pathirage said that he had already prepared a plan to turnaround the company financially as well as with a higher brand visibility to make the National Carrier one of the top airlines in this part of the world.

Ranatunga also instructed officials to explore possibilities of providing more opportunities for local businessmen to apply for tenders in SriLankan Airlines.

He pointed out that most of the tender procedures are made difficult for homegrown companies to apply for and as a result the airline had undergone problems relating to the quality of food served inflight several times.

Noting that developing local enterprises and industries was one of the main objectives outlined in President’s manifesto, he said it was important to locally source food items that are home grown instead of importing at a higher price.

The Minister reiterated that the Government policy was to improve national assets and add value to existing resources and not sell them to any foreign entity.

Ranatunga called on all stakeholders to work hard to turn local enterprises into profitable ventures.

The fresh attempt comes after in January 2019, the then President Maithripala Sirisena received a report of a 12-member Committee headed by former State Minister of Finance Eran Wickramaratne on the future of the national carrier.

The other members of the committee included former Dr. Harsha de Silva, Dr. Nandalal Weerasinghe, Dr. Dharmarathna Herath, Prof. D.B.P.H. Disa Bandara, V. Kanagasabhapathi, L.S.I. Jayaratne, Viraj Dayaratne, Mahen Gopallawa, Wasantha Kumarasiri, Ajith Amarasekara and Thisuri Wanniarachchi.

The report made recommendations on three sections – liquidation and reestablishment of the institution, the management agreement, and the debt restructuring and the capital generation. Under the restructuring of the State-owned institution, the Committee recommended focusing attention on identifying an independent board of directors and management, revision of project models, restructuring of human resources, providing an independent procurement process, and looking for cooperation in brand promotion.

SriLankan Airlines last month issued a statement noting that it had made significant progress in its efforts to become a sophisticated customer-centric airline intent on achieving financial success, by implementing a wide-ranging Turnaround Plan under the leadership of its Board of Directors with the unstinted support of its employees across all divisions.

It said financial performance for the six months ended 30 September 2019 showing an upward trend by reducing losses by more than 50%, with a loss of $ 19 m before interest and withholding tax against a loss of $ 39 m for the same period in the previous year.

After interest and withholding tax, the half yearly group loss was $ 76 m, a $ 10 m improvement over the $ 86 m loss in the previous year. This was achieved despite an overall decline in Group Revenue of $ 43 m, 70% of which was due to a drop in passenger and cargo revenue.

The decline in income was offset by the considerable reduction in operating expenditure amounting to $ 55 m due to the efforts of the staff of the entire organisation in cost saving initiatives to enhance productivity and reduce admin costs and wastage. Savings in the area of engineering and maintenance for the aircraft fleet have been significant, and a cost reduction of $ 8 m was realised in 2018/19, with a further $ 23 m earmarked for 2019/2020. There has also been a noteworthy improvement in fuel performance of the NEO aircraft fleet.

Ft.lk

4R-ALS after paint work

Any positive proposals in the restructuring plan which was compiled by the previous Government to rescue SriLankan Airlines, the loss making national carrier, will be carried forward by its new Chairman Ashok Pathirage.

Speaking to The Sunday Morning Business, Pathirage noted that following an evaluation of the restructuring strategy, the airline would retain the areas it finds to be beneficial and constructive.
“We will not simply throw away the restructuring plan just because it was done by the previous Government. We will definitely look into it and take whatever we think is good for the airline,” Pathirage added.

Ashok Pathirage was appointed as the new Chairperson of SriLankan Airlines Ltd. on 16 December by the Ministry of Tourism and Aviation. He is also the Chairman/CEO of the diversified conglomerate Softlogic Holdings PLC.

He noted that his main aim is to look at ways of improving the profitability of the national carrier and thereby transform the perception of the airline. However, he stated that it is premature to disclose to the media any privatisation plans the new management may have for the airline.

Restructuring strategy
In May this year, an expert committee appointed by former President Maithripala Sirisena submitted its report on restructuring SriLankan Airlines to the Cabinet of Ministers and the report was approved. SriLankan Airlines is reportedly in the process of implementing the restructuring plan to save itself from financial struggles, although the progress of the implementation is not known.

The committee made recommendations with respect to the financial restructuring, corporate restructuring, preparation of an effective strategic plan and operating business model, and human resource restructuring of SriLankan Airlines, ensuring an independent procurement process and exploiting synergies in brand promotion.

SriLankan Airlines’ loss during the 10-year period from 2009 to 2019 is Rs. 240 billion. In addition to the losses incurred, the total value of loans owed by SriLankan Airlines to state banks and state institutions including the CPC is Rs. 146 billion.
According to the recently released report by the Committee on Public Enterprises (COPE), the operating loss suffered by SriLankan Airlines was Rs. 4,428 million in 2008, when Emirates withdrew from the management of the airline. A total of 14 aircraft, comprising five A320 aircraft, four A330-200 aircraft, and five A340-300 aircraft, were operated by the company at the time.

themorning.lk

Aerofloat will be back to CMB starting end of 2020

Moscow Sheremetyevo – Colombo eff 25OCT20 Aeroflot mainline operating once again, replacing Rossiya in W19. 5 weekly A330-200
SU284 SVO2205 – 0905+1CMB 332 x23
SU285 CMB1045 – 1730SVO 332 x34


Source- routesonline.com

Villa Air has become the first Maldivian company to repair and conduct maintenance of a Fitsair aircraft in the Maldives.

Ooredoo
An aircraft of the FitsAir, a charter airline from Sri Lanka, landed in Maamingili airport yesterday to carry out heavy maintenance in the Maintenance and Overhaul facility of Villa Air based on the island. Villa Air stated that this was the first opportunity for a Maldivian company y to repair and conduct maintenance on a foreign aircraft.

The company also noted that the Sri Lankan Civil Aviation Authority had permitted the company to carry out the maintenance of the ATR 202-72 aircraft, after inspecting the facility.

Villa Air also thanked the Maldivian Civil Aviation Authority, Immigration, Maldives Customs among other institutions for paving the way to accomplishing this feat.

The company noted that it had had the capability to conduct such operations for years, and was working with the aim to become a regional facility and provide engineers with opportunities.

Haleef,

Any reason why 4R-EXN has been ferried to Maldives for maintenance? I wonder if its going to be painted?

China Eastern has resumed Kunming-Colombo-Male' flight from 28-Dec-19.

Wondering whether they have increased the frequency from 3 to 4 weekly too.

no.. it is not full resumption....

mostly it will be just per week routine..

Does anyone know when exactly will ALS get it's interior refurbishment?

Colombo-bound flight halted on runway due to technical snag

1 day ago · Chennai, Dec 29 (UNI) A Sri Lankan airlines flight bound for Colombo, with 177 passengers and six crew members, was stopped at the runway, moments before take off, following a technical snag at the Anna International airport here this evening. pilot noticed a technical snag.

it's UL128 operated by 4R-ANF A321 neo. It looks UL is doing well on UL128 flight as 177 passengers were on A321.

I thought 4R-ALS is an out-dated aircraft. Do you think it's worth giving interior refurbishment ?

Renewed Hopes for MRIA

December 31, 2019

Under the development plan of the present government, Airport and Aviation Services (Sri Lanka) is in the process of exploring the opportunities to re-commence international flight operations at Mattala Rajapaksa International Airport (MRIA)
As per the guidance of the Hon.Minister, the newly-appointed Chairman, Vice Chairman, the Board of Directors along with the Head of Divisions, senior officers of AASL visited MRIA on 30th December 2019 as their 1st official visit to discuss the current situation of MRIA. The objective of the visit and the meeting was to explore the feasible strategic directives and development opportunities at MRIA. In line with the visit, a meeting was organized with other key stakeholders to explore the future strategic direction of MRIA and actions which can be executed to make MRIA as a revenue-earning business unit. The officials emphasized the need for a holistic approach for Mattala as a destination of choice among the international tourists who are visiting Sri Lanka. Further, under the long term strategies, it was conversed the possibility to export perishable cargo from MRIA to Middle East markets by developing agricultural bases and allied industries around the Hambantota area. The meeting was concluded successfully with renewed aspirations for MRIA to re-commence international scheduled operations.

Source:airport.lk