Sri Lanka Aviation

**Max** · 30-05-2016, 11:21 AM

KMPG to assist NSB in SriLankan Airlines restructure

In the quest to find a strategic partner for SriLankan Airlines which has become a heavy financial burden to the country, the government has selected audit firm KMPG to expedite the re-orientation process, officials said. KMPG will assist the National Savings Bank (NSB) the lead manager appointed by the cabinet, in finding an international investment bank to handle the restructure exercise.

The audit firm will decide on recruiting necessary experts to obtain professional support on various aspects of re-orientation of the Sri Lankan Airlines expeditiously. The Cabinet Committee on Economic Management (CCEM) has directed the authorities to conduct valuations and put out the Request for Proposals (RFP) to select a suitable investor for the airline by July 1.

In order to avoid possible delays, a suitable time frame has been be set for investors to submit proposals and strictly adhere to the same, a senior government official said. An international investment bank with aviation expertise had to be selected, as “there is no local party with airline expertise”, he said adding that documents for RFPs would be issued with the assistance of the investment bank. He said the government will have to write off the carrier’s carried forward debt and it will also need to address the issue of 7,000+ employees.

SriLankan Airlines employee to aircraft ratio with 21 aircraft is one of the highest in the world with around 340 employees per aircraft.

KMPG to assist NSB in SriLankan Airlines restructure | The Sunday Times Sri Lanka

http://www.sundaytimes.lk/160529/business-times/kmpg-to-assist-nsb-in-srilankan-airlines-restructure-195052.html

In the quest to find a strategic partner for SriLankan Airlines which has become a heavy financial burden to the country, the government has selected audit firm

**banuthev** · 30-05-2016, 01:39 PM

Originally posted by Cayman

So, UL is planning on offloading three HGWs while holding on to two. When CDG and FRA are cancelled, I think keeping two HGW and two non-HGW frames does make sense. They may want to keep the options open to increase the frequency to PEK and PVG though.

This obsession with FCO has to stop. It is not a route UL or MJ can run profitably. Religious sensitivities aside, there is no reason to relaunch FCO.

No UL cant expand more frequencies to China with only 4 x Widebody (A333). 4 x A333 is only sufficient to serve Daily to LHR & CAN, 4 weekly to PEK, PVG, NRT, 3 weekly BKK-HKG and in the spare 5 hours could serve Daily to MLE if they plan well. But UL needs Widebody for flights to KWI, JED & RUH.

**banuthev** · 30-05-2016, 01:57 PM

Originally posted by ejanson65

Makes perfect sense.

No money = no options. UL has reached the point where decisions are made for them. They are out of options. Too little - too late imho. This won't stop the inevitable bankruptcy.

What deal? Qatar has never been interested. Akbar showed up, laughed in their face, and left.

More fairy tales! There is no money so this will not happen.

I hear UL is going to stop all the layovers for cabin crew on the flights to KMG, DXB, AUH, PVG & PEK. So all these flights are going to be turnarounds some extra seats will be blocked for the additional crew.

**Cayman** · 30-05-2016, 03:30 PM

Originally posted by ejanson65

What deal? Qatar has never been interested. Akbar showed up, laughed in their face, and left.

Actually, Al Baker did a bit more.

He asked them why a Chrysler was sent to pick him up instead of a Mercedes

**LukeSkywalker** · 30-05-2016, 11:27 PM

Originally posted by banuthev

I have been hearing shocking rumours about UL lately.

* UL to cancel CDG & FRA;
* UL to re-lease three of it's A330-300s (ALM, ALN, ALP) to another airline;
* MJ to launch FCO with 4R-ALJ;
* UL will have only 4 x Widebody (A333) from mid 2017;
* UL will have long-haul flights to only LHR, NRT, PEK, PVG;

Some one please confirm if it's true? :-(

If they want a viable option it's the new ones they can lease out and continue to utilize the 332. Not the ideal option but given the current dire situation they might have no option.

Jet airways did the same with their new 777s not so recently, it just a matter of taking some hard decisions. I hope they do the same with their staff too.

**Speedbird** · 31-05-2016, 03:11 AM

Originally posted by TheF15Ace

... How on earth do they plan to pay so many employees while throwing away so much revenue?

"We need to cut down loss making routes and now aircrafts" (Sarcasm)

...last time I checked neither routes or aircrafts can talk back

**TheF15Ace** · 31-05-2016, 04:59 AM

Originally posted by Speedbird

"We need to cut down loss making routes and now aircrafts" (Sarcasm)

...last time I checked neither routes or aircrafts can talk back

I'm just surprised Mr tough guy Suren Ratwatte didn't even try to threaten/blackmail/terminate anybody from this "rogue flight attendants union''. He did say ''I am here to make big decisions and ride my bicycle on my off days.”

Or is one of the company's biggest (and most high maintenance) work groups giving them the finger below his pay grade -_-

**ecureilx** · 31-05-2016, 03:25 PM

Originally posted by LukeSkywalker

Jet airways did the same with their new 777s not so recently, it just a matter of taking some hard decisions. I hope they do the same with their staff too.

I think 9W leased them off the factory to TK.

And likewise, somebody also sent new frames to AI some time ago.

Originally posted by banuthev

I hear UL is going to stop all the layovers for cabin crew on the flights to KMG, DXB, AUH, PVG & PEK. So all these flights are going to be turnarounds some extra seats will be blocked for the additional crew.

Well, would that also include those over nighting in KUL, SIN .. ????

A lot of LCCs don't over night staff, unless the staff agree to stay on their own pocket, with a minor allowance. Whereas for legacy carriers, over nighting is a lucrative form of extra pay !

**ejanson65** · 31-05-2016, 08:32 PM

Originally posted by Max

KMPG to assist NSB in SriLankan Airlines restructure

In the quest to find a strategic partner for SriLankan Airlines which has become a heavy financial burden to the country, the government has selected audit firm KMPG to expedite the re-orientation process, officials said. KMPG will assist the National Savings Bank (NSB) the lead manager appointed by the cabinet, in finding an international investment bank to handle the restructure exercise.

The audit firm will decide on recruiting necessary experts to obtain professional support on various aspects of re-orientation of the Sri Lankan Airlines expeditiously. The Cabinet Committee on Economic Management (CCEM) has directed the authorities to conduct valuations and put out the Request for Proposals (RFP) to select a suitable investor for the airline by July 1.

In order to avoid possible delays, a suitable time frame has been be set for investors to submit proposals and strictly adhere to the same, a senior government official said. An international investment bank with aviation expertise had to be selected, as “there is no local party with airline expertise”, he said adding that documents for RFPs would be issued with the assistance of the investment bank. He said the government will have to write off the carrier’s carried forward debt and it will also need to address the issue of 7,000+ employees.

SriLankan Airlines employee to aircraft ratio with 21 aircraft is one of the highest in the world with around 340 employees per aircraft.

http://www.sundaytimes.lk/160529/bus...re-195052.html

He said the government will have to write off the carrier’s carried forward debt and it will also need to address the issue of 7,000+ employees.

Not sure why the people of Sri Lanka should have to pay for this when:-

- Half the 2005 Tsunami aid is unaccounted for (source BBC).
- Almost $20 Billion Dollars has been transferred out of the country (nobody seems to be doing anything about it).
- Theft/Fraud/Corruption/Incompetence and Nepotism at UL continues to go unpunished and uninvestigated.
- $$ Millions made on the sale/leaseback and commissions on the aircraft deal that has bankrupted the airline and the country (no investigation as far as I know).

How about getting some of this money back instead?

Here's a good place to start.

Google Maps

https://www.google.nl/maps/place/Marriott+Hotel+Al+Jaddaf/@25.2113718,55.313279,17z/data=!3m1!4b1!4m5!3m4!1s0x3e5f5d5494a4fd4b:0xa69aa7dfd3aa8517!8m2!3d25.211367!4d55.315473?hl=en

Find local businesses, view maps and get driving directions in Google Maps.

**banuthev** · 01-06-2016, 09:46 PM

Originally posted by Aaqib

Hope UL brings in either a couple of ATR42-600's or preferably the Bombardier Dash8 Q-200's which would be ideal for domestic service.
I do agree with the wastage of resources by Helitours as they operate only on Monday Wednesdays and Fridays
Getting a seat is pretty tough due to all the flights been booked well in advance.They should really think on increasing their frequency as the demand is very high and the fares being quite affordable.

Is Helitours still flying on MA60 on their domestic ops?

I read on the CH Aviation that CAA of SL have grounded the pair of Helitours MA60s from flying for passenger operations due to unspecified technical issue on the aircraft . What a waste of money for getting MA60s. Currently Helitours doing the ops on Y12 & Bell 412. Now Helitours looking at leasing two more aircraft for domestic ops.

**abhijith16** · 02-06-2016, 09:09 AM

Originally posted by ecureilx

I think 9W leased them off the factory to TK.

And likewise, somebody also sent new frames to AI some time ago.

No, 9W didn't send them directly off from the factory to TK. 9W did take them, but because of overcapacity at the time, sought to use the 77Ws as a way to earn revenue by leasing them out to TG/TK. Eventually, EY came along, and began restructuring Jet (and took 6 of the leased 77Ws).

Now that Jet is in the pink of its health, EY is set to return them starting August, so that Jet can use to upgauge their existing A330 services to AMS/CDG/YYZ, so that the same A330s could be used to replace some of the regional flying (DXB/SIN/BKK), which in turn allows for more of their narrowbodies to be utilized in domestic/Gulf market.

So yes, just as 9W did, UL needs to swallow their pride and take the poison pill in order to restructure, otherwise it'll die a slow and painful death..

**Haleef** · 02-06-2016, 11:17 AM

Originally posted by banuthev

Is Helitours still flying on MA60 on their domestic ops?

I read on the CH Aviation that CAA of SL have grounded the pair of Helitours MA60s from flying for passenger operations due to unspecified technical issue on the aircraft . What a waste of money for getting MA60s. Currently Helitours doing the ops on Y12 & Bell 412. Now Helitours looking at leasing two more aircraft for domestic ops.

Yes, the MA60s have been grounded, and only one of that is in operation. Takes off rarely in the morning and afternoon, even 30 minutes back it took off. But I don't think on Helitours passenger OPS. Waste of money buying these aircraft. It would be better if SLAF could get down two C130 Hercules aircraft, which are more big and reliable. Nice to see if they lease or buy a wide body prop, instead of a helicopter or small Y12 aircraft. Fits Air's (Former Expo Air) Fokker F27 aircraft is also currently on ground with one of its' propellor removed. Wonder why? And any reason of whether it will fly or any otherthing...? One of my favorite birds, the F27, AN32s and the C130. Takes me back to those good old times at Ratmalana. Heard that the No.2 squadron will also be brought back to Ratmalana, due to the 2nd Runway project at Katunayake.

**Serendib** · 02-06-2016, 10:14 PM

Originally posted by ecureilx

I think 9W leased them off the factory to TK.

And likewise, somebody also sent new frames to AI some time ago.

Well, would that also include those over nighting in KUL, SIN .. ????

A lot of LCCs don't over night staff, unless the staff agree to stay on their own pocket, with a minor allowance. Whereas for legacy carriers, over nighting is a lucrative form of extra pay !

SriLankan Airlines to ground overweight cabin crew

SriLankan Airlines To Ground Overweight Cabin Crew - Colombo Telegraph

https://www.colombotelegraph.com/index.php/srilankan-airlines-to-ground-overweight-cabin-crew/

[…]

**Sandaru** · 04-06-2016, 08:26 AM

Is it true that someone is preparing to launch a new airline as "Peace Air" with Boeing 737s ??

**Sandaru** · 04-06-2016, 08:49 AM

Originally posted by Serendib

SriLankan Airlines to ground overweight cabin crew
https://www.colombotelegraph.com/ind...ht-cabin-crew/

In my point of view, this is a good decision took by the airline, I've seen some chubby out of shape flight attendants that's not looks good for the saree!!

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