‘2011 Via Capital plan was not feasible’

Srilankan Airlines Commission:

The business plan which was prepared by the Via Capital international consultancy service company for Srilankan Airlines in 2011 had not provided a detailed financial plan for re-fleeting although the previous strategic business plan by Consultant S.A. Chandarasekara contained a comprehensive financial plan for re-fleeting of UL; it was revealed at the Srilankan Airlines Commission yesterday.

Testifying before the PCOI, Srilankan Airlines Head of Finance, Yasantha Dissananyake informed the Commission that the Treasury and the airlines director board wanted to validate the strategic business plan made by Mr. Chandrasekara through an international consultancy company but the validated business plan did not include a proper financial plan for re-fleeting.

“Mr. Chandrasekara’s plan referred to several types of aircraft models such as A320-200, A330-200 and A350. He also mentioned that Srilankan could bring a suitable type of aircraft on leased rental,” the witness informed the Commission.

Earlier, it was also revealed to the Commission the decision taken by Srilankan to purchase four Airbus A350-900 and lease another four amounting to more than 50% of the total Srilankan assets in 2013.

The witness informed the Commission that the Board of Directors at Srilankan Airlines was continuously informed about the dire financial situation of UL but still the board had considered purchasing A350-900 aircraft for re-fleeting of UL.

“I have to send monthly financial reports to the board. when Srilankan had decided to acquire four Airbus A350-900 and obtain on lease four more and they amounted to more than 50% of the total Srilankan assets in 2013, I told the board that we were in a serious situation. Earlier I had recommended downsizing,” he said.