SriLankan announces restructure plans, over 200 flts to be cancelled during BIA closure

National carrier SriLankan Airlines on Wednesday morning announced its future restructuring plans, takeover of Mihin Lanka and rebranding, returning four Airbus aircraft on order and changing strategies to operate as a regional carrier.

It was also announced that the airline would suffer a revenue loss of $47 million during the period of the closure of the Bandaranaike International Airport’s (BIA) runway from January 6 – April 6 with over 200 flights to be cancelled .

SriLankan Airlines Chairman Ajith Dias told the media, that it had inherited “quite a mess” but had been able to reduce losses by 45 per cent with losses down at Rs.9.03 billion as at end March 2016 as opposed to Rs.11.5 billion losses reported in 2015.

In the five months of April – August of the FY losses were further reduced by 37 per cent with the group losses recording an improvement at Rs.2.32 billion compared to Rs.3.71 billion in 2015, Mr. Dias said.
In the sale of its leased aircraft from Airbus, the airline said that following some “hard negotiating” they were able to return some aircraft that this company doesn’t need, the Chairman explained terming it as “unnecessary aircraft.”

He noted that the four aircraft if they had taken over, the losses would have been completely “unbearable” adding that this would create an additional loss of US$480 million and if operated it would have created another US$1 million per year.

Negotiations were carried out together with the Ministries of Public Enterprise Development and Finance to terminate the contract on the leasing of four of the eight aircraft ordered, it was stated. - (SD)