When Di­rec­tor Board ap­proves plans

Sri­lankan to be­gin re­struc­tur­ing

Daily Mirror (Sri Lanka) - - CONTD. FROM -

The air­line’s Chair­man Ran­jith Fer­nando said yes­ter­day the pro­gramme in­cluded the se­cur­ing of a part­ner or in­vestor, stream­lin­ing and re-ar­rang­ing of routes and cut­ting down on ex­cess or un­pro­duc­tive staff.

He told Daily Mir­ror the re­struc­tur­ing pro­gramme was ap­proved by the Cab­i­net and the Sri­lankan board of di­rec­tors would ap­prove it be­fore the end of April.

“Our pri­or­ity would be to re-ne­go­ti­ate the pur­chase and ter­mi­na­tion con­tracts with Air­bus In­dus­tries and the air­line leas­ing com­pany Aer­cap based on the renegotiation strat­egy pro­posed by Nairas on the ba­sis that the leas­ing of air­craft by the na­tional car­rier has be­come an un­bear­able bur­den to the air­line and the coun­try,” Mr. Fer­nando said and added that in ad­di­tion Sri­lankan would re­ar­range its routes and lay off ex­cess staff with a rea­son­able com­pen­sa­tion.

“The new board of di­rec­tors has al­ready dis­cussed con­tentious is­sues that is bleed­ing the na­tional car­rier. Our main con­cern is to rene­go­ti­ate the pur­chas­ing, leas­ing and ter­mi­na­tion agree­ments in a way that would not be a bur­den to the coun­try and the air­line. Sri­lankan in­curs a loss of some US$100 mil­lion or Rs.15 bil­lion) ev­ery month which is a huge bur­den,” Mr. Fer­nando said. “Our other ob­jec­tive is to bring Sri­lankan to a break-even point which will be a ma­jor re­lief to the econ­omy, to the air­line and to the em­ploy­ees. I ex­pect the board mem­bers and the man­age­ment team would get the max­i­mum pos­si­ble co­op­er­a­tion and bless­ings of em­ploy­ees, the gov­ern­ment and the peo­ple to make our en­de­vour a suc­cess.” Mean­while Sri­lankan air­lines has achieved a record an­nual pas­sen­ger rev­enue of Rs.126.9 bil­lion or US$ 830.7 mil­lion for the fi­nan­cial year 2017/18 which is the high­est ever in the air­line’s 38-year his­tory.

The rev­enue comes on the after­math of the ex­pan­sion of the air­line to in­clude ser­vices to sev­eral new des­ti­na­tions such as Gan Is­lands, Hyderabad and Mel­bourne and ad­di­tional fre­quen­cies to pop­u­lar cities in its net­work.

The air­line’s cargo divi­sion has also recorded a spec­tac­u­lar per­for­mance, achiev­ing a rev­enue of Rs.14.7 bil­lion. Both pas­sen­ger and cargo di­vi­sions ex­ceeded their an­nual tar­get, en­abling the Sri­lankan air­lines to be bol­stered by an even stronger per­for­mance at its best per­form­ing busi­ness unit Sri­lankan Ground Ser­vices – to com­fort­ably ex­ceed the over­all an­nual rev­enue tar­get.

The over­all Group turnover ex­ceeded one bil­lion US$ mak­ing Sri­lankan one of the hand­ful of com­pa­nies in Sri Lanka to reach this mile­stone. It also be­comes the high­est rev­enue gen­er­at­ing com­pany among all Sri Lankan busi­nesses which pub­lishes their fi­nan­cial re­ports.

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