Sri Lanka Aviation

**Cayman** · 09-08-2013, 06:20 AM

Originally posted by Speedbird

Hmmm...I am quite positive on this route...there is a good demand for cargo...if this route is a successful route then UL should look at Mauritius as well

I was not aware of the cargo demand, but in that case A320 may not be the best equipment for belly cargo. Then again A330 will be an overkill on the route.

Launching a new route is exciting, but at a time when UL has blood pouring through their ears, they have to be very careful. I still struggle to see the demand, as the Sri Lankan community in Seychelles is quite small and are mainly employed in the hospitality sector. They travel home every year or every other year and prefer to travel via Dubai due to duty free shopping available there.

**Cayman** · 09-08-2013, 06:23 AM

Originally posted by Lasantha

Finances allocated for this project is now being used to pay the outstanding invoices at CPC. Since the airline is running at a huge loss and the govt. too not in a position to finance the company, UL is now looking for a strategic partner!!! Check wz Airbus in regards to the MOU

Not sure of the veracity of this statement, but if true I think this is the most sensible thing to do, especially given the recent statements by UL of not being profitable for another 4 years and in their estimates (which I assume are greatly under-estimated) they are poised to lose another USD 0.5B before becoming profitable.

**ecureilx** · 09-08-2013, 06:30 AM

Originally posted by LukeSkywalker

If someone is flying in for maintenance does it really matter (after all it's only a few hundred miles away) ?

Couple of Hundred miles ? well, I saw VS 340-600 in Manila, was sent all the way to MNL for C / D Checks ..

And Indigo, flown all the way, when both the airline don't serve MNL ..

They fly in empty

Honestly, HRI maybe better off as a Maintenance base, since with less movement, they can do any number of flight tests without worry of upsetting the active .a-la Paya lebar .. you can see planes shut down in the active, when they have issues, and nobody is bothered ..

**Srilankan1** · 09-08-2013, 12:02 PM

"SriLankan has reported a loss of about Rs.25 billion in 2012 and since 2008, the accumulated loss accounts for over Rs.55 billion"

According to SriLankan Airlines Chief Executive, Kapila Chandrasena, one of the key issues impeding the airline coming out of the red and making a profit is the national interest. He told a recent media conference that as the national carrier, their decisions are not purely commercial.

Read full article http://www.dailymirror.lk/opinion/17...editorial.html

**Speedbird** · 09-08-2013, 02:04 PM

Originally posted by Cayman

...Launching a new route is exciting, but at a time when UL has blood pouring through their ears, they have to be very careful...

Could not agree with you more...looks like the financial problem with UL is quite acute

**Speedbird** · 09-08-2013, 04:48 PM

Originally posted by Cayman

Not sure of the veracity of this statement, but if true I think this is the most sensible thing to do, especially given the recent statements by UL of not being profitable for another 4 years and in their estimates (which I assume are greatly under-estimated) they are poised to lose another USD 0.5B before becoming profitable.

Originally posted by Srilankan1

"SriLankan has reported a loss of about Rs.25 billion in 2012 and since 2008, the accumulated loss accounts for over Rs.55 billion"

According to SriLankan Airlines Chief Executive, Kapila Chandrasena, one of the key issues impeding the airline coming out of the red and making a profit is the national interest. He told a recent media conference that as the national carrier, their decisions are not purely commercial.

Read full article http://www.dailymirror.lk/opinion/17...editorial.html

http://www.lankabusinessonline.com/n...leet/374830029

UL CEO mentioned the following

Fuel prices at Colombo were among the highest in the world after Maldives, he said

Until this is fixed; trying to becoming the air hub is a distance dream; will never compete against Singapore or UAE/Qatar. Sri Lanka does not have refinery capability such as Jurong Island or Jebal Ali.

it will definitely more than 0.5bn loss and that is not a viable business model.

UL CEO mentions that their decisions are not purely commercial; well we know that excepts SL zombies who is following current GOSL. But he fails to mentions who gives the inputs for these decisions.

DM Editorial sums it up very nicely

But in Sri Lanka the meaning of the term (national interest) appears to have been given a twist as it reflects the whims and fancies of a handful of people. Their vanity and ego have unfortunately become Sri Lanka’s national interest

Future is very bleak or almost non existence for UL...It is national shame

**Cayman** · 09-08-2013, 05:56 PM

I wonder if EY will be interested in buying a stake in UL, as they seem to be on a buying spree. Some of their purchases does not make a lot of sense based on the information available in the public domain, but EY is obviously privy to a lot of information that we are not.

They already code share with UL on AUH-CMB.

**banuthev** · 09-08-2013, 09:21 PM

Originally posted by Cayman

I was not aware of the cargo demand, but in that case A320 may not be the best equipment for belly cargo. Then again A330 will be an overkill on the route.

Launching a new route is exciting, but at a time when UL has blood pouring through their ears, they have to be very careful. I still struggle to see the demand, as the Sri Lankan community in Seychelles is quite small and are mainly employed in the hospitality sector. They travel home every year or every other year and prefer to travel via Dubai due to duty free shopping available there.

Cayman, I agree UL may not have more O&D traffic on CMB-SEZ. May be that's a reason UL is going to serve CMB-NBO via SEZ. UL can attract large amount of South Asian Population to Nairobi. On the other hand, passengers from Europe, South Asia and Far East can take transit in Colombo for Seychelles flights. Approx Flight Duration between CMB-SEZ is not bad it's only 3.49hrs, If I am not mistaken.

On a different note, Mihin Lanka to continues to operate service to Medan in Indonesia from 1 August 2013. Mihin's seasonal flight to Medan launched on 22 May 2013 was planned to serve until 31 Jul 2013, operating twise a week nonstop flights.

**banuthev** · 09-08-2013, 09:29 PM

Originally posted by CalgaryLankan

SEZ seems to be interesting move. Both EY and QR operates A320/319s to SEZ and distance seems to be more than from CMB with almost same (or more) over water. Looks like ETOPS 180 would work. Hopefully this is not a politically motivated move.

http://flightaware.com/live/airport/FSIA

True, EY and QR serve SEZ with A320/A319s. But QR is cancelling SEZ from the network effective Winter 2013 when they join Oneworld alliance. So none of the Oneworld alliance member fly to SEZ. Why shouldn't UL add the SEZ in it's network because we join Oneworld in mid-2014.

**UL-L10** · 09-08-2013, 09:35 PM

Originally posted by Lasantha

Finances allocated for this project is now being used to pay the outstanding invoices at CPC. Since the airline is running at a huge loss and the govt. too not in a position to finance the company, UL is now looking for a strategic partner!!! Check wz Airbus in regards to the MOU

I don't think so, only yesterday there was talk of setting up an aircraft repair facility at the white elephant airport down south, to do this they need the eqipment from Airbus that came as part of the aircraft order, so both stories cannot be correct i think !

**Lasantha** · 09-08-2013, 09:36 PM

Originally posted by Dave

I don't think so, only yesterday there was talk of setting up an aircraft repair facility at the white elephant airport down south, to do this they need the eqipment from Airbus that came as part of the aircraft order, so both stories cannot be correct i think !

Hi Dave... thanks for your comment and what you say is correct... But, this information came directly from our rival company Airbus. Within the past couple of weeks, UL had talks with two major Middle Eastern airlines seeking for a partnership. If the govt. stops misusing the airline, this would have become a reality but sadly not at the moment!

**Max** · 10-08-2013, 03:44 AM

Seychelles have agreed to a wide-ranging commercial agreement that will give customers of SriLankan Airlines convenient access to Air Seychelles regional network in the Indian Ocean & South Africa, Customers of Air Seychelles will in turn enjoy access to new points in Sri Lanka, China, Japan & India.

http://www.eturbonews.com/36867/sri-...ice-seychelles

**Lasantha** · 10-08-2013, 05:30 AM

Affirmative... You may contact me so then I could let you have some details....

**ecureilx** · 10-08-2013, 07:16 AM

Originally posted by Speedbird

Until this is fixed; trying to becoming the air hub is a distance dream; will never compete against Singapore or UAE/Qatar. Sri Lanka does not have refinery capability such as Jurong Island or Jebal Ali.

Same reason the much vaunted chest thumping that all Ships going by Singapore will stop in Hambantota and Singapore will go into oblivion .. as long as fuel isn't cheap, why would any ship stop by to refuel ?

Originally posted by Cayman

I wonder if EY will be interested in buying a stake in UL, as they seem to be on a buying spree. Some of their purchases does not make a lot of sense based on the information available in the public domain, but EY is obviously privy to a lot of information that we are not.

They already code share with UL on AUH-CMB.

Yah, after seeing how SL Govt treated EK, I doubt they will be thrilled to be part of the action .. And many UL pilots head to EY .. why loose the talent pool ??

Originally posted by Dave

I don't think so, only yesterday there was talk of setting up an aircraft repair facility at the white elephant airport down south, to do this they need the eqipment from Airbus that came as part of the aircraft order, so both stories cannot be correct i think !

Not connected. LTK has no connection to any Airbus deal .. LTK always looks for cheap source of aircraft technicians .. like how they have exploited Manila .. now, I wonder where LTK will find qualified technicans to see SL as very attractive, other than cheap rental and unused runway ..

CRk has better attractions ..

**banuthev** · 12-08-2013, 04:17 AM

Originally posted by 4R-ALA

well said banuthev...i'm eagerly waiting for UL non stop services to china and HKG, but as always they just say it in paper never put into action. plus i flew down to CMB last wed from DXB on UL226 A330 (4R-ALH), highly disappointed with UL. first of all incoming flight delayed by 6 HOURS..we weren't even informed until we checked in at DXB. on board the brand new interior plane, no reason was voiced for delay except for a mere apology, plus the CHINESE captain took off w/o switching on the ac and switched it on after take off plus after repeated complaints from pax and crew. staff looked highly disinterested, plus meals were served w/o any menu cards, (honestly do you ever place your order at even a fast food chain blindly). beyond this food wasn't so great either. shocked and stunned at the service standards of UL which has gone down hill.

According to LBO News on 11-Aug-13, SriLankan Airlines planning to operate nonstop flights to China in Summer 2014.

The same news says : "SriLankan is now flying to China via Bangkok, with tourists to Maldives being a key contributor to filling seats. But direct traffic to Sri Lanka has been picking up. Chinese tourist arrivals to Sri Lanka has risen 72.3 percent to 16,582 in the six months to June from a year earlier, overtaking Japan as the biggest East Asian generating market over the past few months." Source

Lets see whether UL will make China nonstop flights in action this time.

Sri Lanka Aviation

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