SriLankan Airlines going ahead with re-fleeting subject to COPE request

SriLankan Airlines will go ahead with its re- fleeting plans subject to a three-month delay as requested by the Parliamentary Committee on Public Enterprise ( COPE) in view of the country’s economic situation, Chairman Ashok Pathirage said yesterday.

The lease agreements on nine of its aircraft will expire by the end of 2023, he pointed out. The national carrier recently issued requests for proposal ( RFPs) to lease up to 21 aircraft, reportedly to support its long- term business strategy. It included two RFPs covering existing fleet types ( A320 and A330 family aircraft) and two parallel RFPs to compare with alternative aircraft types.

“Roughly 60 percent of the planned aircraft will be fleet replacement, and the remainder will be to support the airline’s

expansion strategy and meet the growing demand for air travel between Sri Lanka and the world,” a statement from the airline said.

But the development has been sharply criticised on the grounds that Sri Lanka is facing its worst economic crisis in decades. On Monday, it was taken up before the COPE committee in a meeting that lasted nearly three hours.

Asked whether SriLankan would still lease all 21 aircraft or stick with the nine that would be returned next year, Mr Pathirage said, “It all depends on the pricing and what’s on offer. This is (phased out) till 2025. We are not taking all at once. And these are not new, they are used, second-hand. This whole exercise [RFPs] is to understand what’s out there and pricing.”

The Chairman reiterated that SriLankan would not use Government funds: “It will be all airline funds and on lease. We need to replace about 11 aircraft but if the pricing is good, we will take more and cover more routes.”

COPE Chairman Charitha Herath after the proceedings recommended that SriLankan should postpone the procurement process for three months. “Accordingly, in view of the prevailing economic situation, the entire process should be reviewed and it should be ascertained whether the relevant procurement process is in line with the proper methodology,” according to a statement issued by the Committee. This advice was conveyed to the Secretaries to the Ministry of Tourism and the State Ministry of Aviation and Export Zones Development.

“Further, the COPE Chairman also recommended that a procurement guideline be duly prepared and submitted to the Cabinet through the Cabinet Minister for the relevant procurement as a Cabinet decision,” it said.