Sri Lanka Aviation

This is a sticky topic.

Max

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Join Date: Apr 2011

Posts: 919
#6796

11-02-2016, 10:25 AM

Originally posted by lordvader

http://www.ft.lk/article/524571/Rani...h--Ask-the-PM-

Guess its a waiting game

The Premier also explained to the House that the Government was faced with no choice but to go ahead with the purchase of four Airbus A350-900 aircraft for SriLankan Airlines, because reneging on the order made by the previous Government would result in Sri Lanka having to pay USD 1.5 million each in demurrages. The Government would have to follow through on the purchases, even though the national carrier was making huge losses, Wickremesinghe explained.
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Cayman

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Join Date: Mar 2011

Posts: 379
#6797

11-02-2016, 01:08 PM

Originally posted by Max

Sri Lanka having to pay USD 1.5 million each

Given the list price of A359 being USD 305M and knowing that UL does not get EK style discounts anymore, USD 1.5M each is a very very small price to pay as a penalty.

If UL does not have a business case for A350, why not pay the USD 6M and cancel the order. I expected the penalty to be far far greater than that (at least 20 times larger).

I am not saying USD 6M is chump change, but it is a drop in the ocean in the big scheme if things assuming that UL have to pay close to USD 1B for the 4 A359s. Spending USD 6M now and cutting it lose will be infinitely better than getting stuck with an aircraft that they do not want, for the next 15-20 years and losing hundreds of millions of dollars during its lifetime.
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dilushasg-bdavi

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Join Date: Feb 2011

Posts: 555
#6798

11-02-2016, 07:53 PM

Originally posted by lordvader

This. Plus since the first three A350s are on lease, UL will still have to pay the lease on the aircraft if they are stored till next year. So the storage rumour doesnt make sense. But who knows.

Exactly!!! Some people have mixed up the 3 aircraft on lease and the 4 which are directly ordered from Airbus
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LukeSkywalker

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Join Date: Feb 2011

Posts: 188
#6799

12-02-2016, 01:25 AM

Originally posted by Cayman

Given the list price of A359 being USD 305M and knowing that UL does not get EK style discounts anymore, USD 1.5M each is a very very small price to pay as a penalty.

If UL does not have a business case for A350, why not pay the USD 6M and cancel the order. I expected the penalty to be far far greater than that (at least 20 times larger).

I am not saying USD 6M is chump change, but it is a drop in the ocean in the big scheme if things assuming that UL have to pay close to USD 1B for the 4 A359s. Spending USD 6M now and cutting it lose will be infinitely better than getting stuck with an aircraft that they do not want, for the next 15-20 years and losing hundreds of millions of dollars during its lifetime.

Why waste 6 million? It would be a better option if Airbus is willing to negotiate to move the deposit to any other aircraft (330 Neo?), the 332s need to be replaced anyways.

Does UL own any aircraft outright now? IIRC all the older ones were sold and leased back and I think the same is happening with the new ones as well even if they are ordered direct from Airbus?
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ejanson65

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Join Date: Jul 2013

Posts: 628
- Always fly a stable approach - it's the only stability you'll find this business
#6800

12-02-2016, 08:44 AM

Originally posted by Srilankan1

means Airbus will store the AC for 1 year period???? cant imagine .

Can't locate the article that mentioned the deferral - will keep looking. It talked about deferral to early 2017 - so about 6 months.

It does happen that customers don't take delivery as scheduled - new aircraft do end up in temporary storage. Conditions will be agreed between the leasing company and the Airline.

A350 order is al total disaster either way for Sri Lankan taxpayers.

Another day - another Donkey gets appointed.....

Rajapaksa Army Man Weragama Appointed GM Airport & Ground Services - Colombo Telegraph

https://www.colombotelegraph.com/index.php/rajapaksa-army-man-weragama-appointed-gm-airport-ground-services/

[…]

Colombo Telegraph may not be the greatest standard of journalism but they are the only paper reporting on the ongoing corruption at the Airline.

Nobody seems interested in running the Airline. What a mess.
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lordvader

Senior Member

Join Date: Jan 2011

Posts: 366
#6801

12-02-2016, 09:45 AM

Originally posted by ejanson65

Another day - another Donkey gets appointed.....

Rajapaksa Army Man Weragama Appointed GM Airport & Ground Services - Colombo Telegraph

https://www.colombotelegraph.com/index.php/rajapaksa-army-man-weragama-appointed-gm-airport-ground-services/

[…]

Colombo Telegraph may not be the greatest standard of journalism but they are the only paper reporting on the ongoing corruption at the Airline.

Nobody seems interested in running the Airline. What a mess.

Lets hope that this guy has some other skills which could be utilised in his new position!
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banuthev

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Join Date: Dec 2010

Posts: 4034
#6802

12-02-2016, 12:33 PM

Originally posted by dilushasg-bdavi

Exactly!!! Some people have mixed up the 3 aircraft on lease and the 4 which are directly ordered from Airbus

According to local media sources, UL have been trying to re-negotiate with Airbus inorder to convert the order of 8 A359s with small aircraft which could support the short haul network. Does it even makes sense? UL didn't even ordered 8 A359s directly from Airbus.

UL actually had signed the firm-order agreement with Airbus for only 4 A359s and signed the MOU with Aercap for 3 units of A359s on 12 years operating lease. Not sure about the 8th A350. In my humble opinion, If UL doesn't want those 4 A359s they should sell them to some leasing company and lease back the aircraft which could support their current business model. But UL should take delivery of those 3 A359s from Aercap on operating-lease to serve destinations like London, Beijing, Tokyo etc.. UL needs acquire minimum of few more widebody aircraft to replace ageing Six A332 fleet.

“They (the previous government) had agreed to buy four A350-900 planes and lease another four,” he said. “We have not paid a deposit, but if we default we have to pay a penalty of $12 million.” “We are stuck. We have to review the deal and take a decision if we are going ahead with the purchase or not.”

http://www.sundaytimes.lk/95263/airb...-be-reviwed-pm

UL has to be managed by the Airline Industry Experts not by the Politician' stooges.

Originally posted by LukeSkywalker

Why waste 6 million? It would be a better option if Airbus is willing to negotiate to move the deposit to any other aircraft (330 Neo?), the 332s need to be replaced anyways.

Does UL own any aircraft outright now? IIRC all the older ones were sold and leased back and I think the same is happening with the new ones as well even if they are ordered direct from Airbus?

No UL doesn't own any aircraft right now. Those new A330-300s were sold and leased back from lessors.

Originally posted by Haleef

Cool! Will be waiting

Do you know what registration these 3 A359s going to be receive?
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Haleef

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#6803

12-02-2016, 02:27 PM

Originally posted by banuthev

According to local media sources, UL have been trying to re-negotiate with Airbus inorder to convert the order of 8 A359s with small aircraft which could support the short haul network. Does it even makes sense? UL didn't even ordered 8 A359s directly from Airbus.

UL actually had signed the firm-order agreement with Airbus for only 4 A359s and signed the MOU with Aercap for 3 units of A359s on 12 years operating lease. Not sure about the 8th A350. In my humble opinion, If UL doesn't want those 4 A359s they should sell them to some leasing company and lease back the aircraft which could support their current business model. But UL should take delivery of those 3 A359s from Aercap on operating-lease to serve destinations like London, Beijing, Tokyo etc.. UL needs acquire minimum of few more widebody aircraft to replace ageing Six A332 fleet.

UL has to be managed by the Airline Industry Experts not by the Politician' stooges.

No UL doesn't own any aircraft right now. Those new A330-300s were sold and leased back from lessors.

Do you know what registration these 3 A359s going to be receive?

No idea yet.
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suganya07

Member

Join Date: Jul 2014

Posts: 71
#6804

14-02-2016, 09:34 AM

New dimension plan upswings for Sri Lanka's national carrier to revive the cash-strapped position into a country's top flagship position ,it has been given a opportunity to choose two breakthrough deals with Qatar airways and the Maldives government in the near future, however with the aim of turning SriLankan Airlines into a profit-making venture,Mihin Air would be integrated and the senior management of the Airline has invited the Airline’s staff to share their innovative ideas and the 'Red to Black’ Campaign was initiated to foster closer relationship with the staff thoughts on initiatives that can be taken to reduce losses and optimize cost as the Airline seeks to make progressive steps towards profitability.
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LukeSkywalker

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Join Date: Feb 2011

Posts: 188
#6805

14-02-2016, 11:00 AM

Originally posted by suganya07

New dimension plan upswings for Sri Lanka's national carrier to revive the cash-strapped position into a country's top flagship position ,it has been given a opportunity to choose two breakthrough deals with Qatar airways and the Maldives government in the near future, however with the aim of turning SriLankan Airlines into a profit-making venture,Mihin Air would be integrated and the senior management of the Airline has invited the Airline’s staff to share their innovative ideas and the 'Red to Black’ Campaign was initiated to foster closer relationship with the staff thoughts on initiatives that can be taken to reduce losses and optimize cost as the Airline seeks to make progressive steps towards profitability.

Ummmmm..... are you quoting from some very old news story?
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suganya07

Member

Join Date: Jul 2014

Posts: 71
#6806

14-02-2016, 11:48 AM

Originally posted by LukeSkywalker

Ummmmm..... are you quoting from some very old news story?

No Dear! Its a hot news.Please check the below link

http://www.thesundayleader.lk/2016/02/14/srilankan-airlines-to-ink-deals-with-qatar-maldives/

Hope it helps

cheers
xx
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LukeSkywalker

Senior Member

Join Date: Feb 2011

Posts: 188
#6807

14-02-2016, 09:05 PM

Originally posted by suganya07

No Dear! Its a hot news.Please check the below link

http://www.thesundayleader.lk/2016/02/14/srilankan-airlines-to-ink-deals-with-qatar-maldives/

Hope it helps

cheers
xx

Thanks ! I am not sure how very accurate this reporting is; Maldives does have it's national carrier (though it is mostly regional now).

If UL can negotiate 5th freedom flights for other destinations from Maldives in addition to UK it will be good; it seems strange that the Maldivians would want to sign a deal instead of developing their own fledgling airline.

Al Baker didn't want anything to do with UL according to reports when he was invited...
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ecureilx

Senior Member

Join Date: Dec 2010

Posts: 616
#6808

15-02-2016, 06:31 AM

Originally posted by LukeSkywalker

Thanks ! I am not sure how very accurate this reporting is; Maldives does have it's national carrier (though it is mostly regional now).

Maldive (air) is doing just OK, and with the domestic competition, I doubt they will expand much, unless an investor comes on board. That's just my 2 cents though.
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ejanson65

Senior Member

Join Date: Jul 2013

Posts: 628
- Always fly a stable approach - it's the only stability you'll find this business
#6809

15-02-2016, 08:17 AM

Another good article.

A Way Out For SriLankan Airlines - Colombo Telegraph

https://www.colombotelegraph.com/index.php/a-way-out-for-srilankan-airlines/

[…]

The one thing people keep missing is that UL is not a business - it's a wealth transfer vehicle.

Most people are just there to maximise their own salary and benefits. There is nothing that indicates anyone is interested in running this as a business.

Most of the management are not even qualified to hold their positions - this pack of clowns couldn't manage their way out of a paper bag imho!

Ajith Dias still talking about profitabilty in 3 years - I can't take anything he says seriously.

Now they can't even decide what to do - all decisions are being over-ruled by the GOSL. GOSL doesn't know if it's coming or going imho!

And then there's this....

RTI Shelved To 'Protect' Govt. - Colombo Telegraph

https://www.colombotelegraph.com/index.php/rti-shelved-to-protect-govt/

[…]

I see the Politicians are very good at protecting themselves. They will be able to shut down any investigation - especially any that threaten to expose their involvement.

So no accountabilty and no justice for those of us who are victims of abuse of power.

Until this culture of impunity and zero accountability changes it's all a lost cause - that applies to the country as well as the Airline.
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TheF15Ace

Senior Member

Join Date: Jan 2016

Posts: 113
#6810

15-02-2016, 06:02 PM

UL announces suspension of CMB-FCO effective 01MAY16, along with a few other changes to it's network.

http://www.srilankan.com/en_uk/home/news-details/266
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