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SriLankan’s wings to be clipped

14 Aug 2022

  • To lose 6-7 aircraft over next 12 months, causing capacity restraints
  • Out of 24-strong fleet, 3 non-operational: Pathirage
  • Expresses concern over potential loss of Indian market to other carriers
  • Int’l carriers may fix prices as they wish, draining forex from SL
By Shenal Fernando SriLankan Airlines, which is currently running at full capacity, will face significant capacity restraints going forward, as the airline is scheduled to lose six to seven aircraft from its current fleet of 24 over the next 12 months. Speaking to The Sunday Morning Business, SriLankan Airlines Chairman Ashok Pathirage stated that out of its current fleet of 24 aircraft, three were non-operational due to issues relating to the engines. Furthermore, the leases of six to seven aircraft are due to expire over the next 12 months. He further stated that due to the fuel issues in Sri Lanka, most foreign airlines had cut down flights to the country. Consequently, this additional burden is being borne by SriLankan by operating at full capacity and the decrease in SriLankan’s fleet will severely impact its ability to operate. “Currently, the Indian market is being catered to entirely by SriLankan. We have to ensure that Indian tourists keep arriving. Furthermore, we are responsible for flying most foreign workers to the Middle East. If we do not have a sufficient fleet to operate, what happens to the economy? The foreign carriers will dominate and they will fix prices as they wish if we are not there. The use of foreign carriers will also lead to further foreign exchange outflows.” Pathirage asserted that it was essential for SriLankan to replace these aircraft when the respective leases expired, since the country’s tourism sector would be significantly impacted without the airline, especially in light of the decision by foreign airlines to cut down flights to Sri Lanka.  “We will look to replace the outgoing aircraft by leasing second-hand aircraft. Currently, aircraft lease fees are quite cheap due to the prevailing external global environment. It is beneficial to airlines to enter into leases now. One of SriLankan’s biggest problems is that we have procured our aircraft previously at very high rates, which is why we were seeking to lease those aircraft during early 2022. It was a move which was beneficial for the company.” He criticised the reaction of the media and certain segments of the public earlier this year with regard to the decision by SriLankan to call for Requests for Proposal (RFPs) to lease up to 21 aircraft.   In early 2022, SriLankan announced that it had issued four RFPs to lease up to 21 aircraft to support its long-term business strategy. “This included two RFPs covering existing fleet types (320 and 330 family aircraft) and two parallel RFPs to compare with alternative aircraft types,” disclosed the airline. However, the RFP process was suspended following significant public backlash and political attention.        


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