President flew to Delhi on 4R-ADE. Usually President is flying on 4R-ADE, ADF or ADG

SriLankan gobbles up Rs. 60 m a day

The SriLankan Airlines incurs a loss of nearly Rs. 60 million a day, reports by the Central Bank point out.

The airlines’ losses are increasing by the year and the increase of losses stood at 31 per cent in 2012.

SriLankan cites increased prices of aviation fuel, economic downturn in Europe and delay in expanding and modernizing its fleet of aircraft as the reasons for its continued losses.

However, other international airlines earn huge profits, with Emirates recording a 43 pc increase in its profit to 887 million USD in 2013.

According to economists, an absence of a proper institutional vision and inexperienced persons holding top positions are the reasons for this grave setback by the SriLankan Airlines.

Its chairman is Nishantha Wickramasinghe, who is the brother of first lady Shiranthi Rajapaksa, and has failed even at the GCE O/L exam.

The airline has an eight member director board, including Shamindra Rajapaksa, son of speaker Chamal Rajapaksa.




open for discussions...

wow... we should have had the EK 49% share we used to have...

Corruption, incompetence, financial mismanagement, a culture of impunity, zero accountability and gross negligence - just another day at UL....

And people are surprised at the results? Wtf?

On the plus side the management and board of directors are loyal - after all that's what really matters!

"Grave setback?" Lol - understatement of the year!

I see the excuses are still the same - is anybody still buying this crap?

The Airline is being run into the ground and nothing is being done. How about some accountability?

I expect the financial results for 2013 to be even worse - due to the (forced) operation of wide bodied aircraft in and out of HRI.

This is a lost cause imho.

I was always with it Umedha.The most stupid decision we have ever made to break away from the Emirates thanks to HE Rajapassa.

No, it is out of service. Undergoing a C check before its lease return.

Thanks thilina. Do you know any latest update on business class upgrade on Mihin Lanka aircrafts?

Some of the planespotters from Dublin are going to post the pictures of second A321 in this forum. Looking forward to see the pictures.

I think Srilankan is on the process of replacing 4R-ABG, ABJ, ABK and ABL with A321s. It's a good move in my opinion.

Yey thats a good move... a bit bigger cabin for our regional routes

SriLankan and Mihin Air to be made viable ventures

Came across this on facebook! It's funny how some people here are still trying to defend this man who destroyed UL.

I rate the article as pure propaganda - lots of vague promises with no substance.

I've been hearing this "X years to profitability" crap since the GOSL took over the airline. Funny thing is that the year this will happen keeps changing. I think 2012 was the first target year. What is is now - 2019?

The increasing losses are cold hard facts.

I see there is also no mention where the money for all of this is going to come from - they still need almost Rs20,000,000/day just to keep operating.....

The whole "New Aircraft/Fuel efficiency = profits" argument is also very misleading. The whole argument is a myth.

Used A340 lease is anywhere from $150,000/month*- $500,000/month* depending on the aircraft.
New A330-300 lease price is around $900,000/month*
New A350 lease will be over $1,000,000/month*

*Lease rates are approximate - I am not in the aircraft leasing business but I do have an idea what sort of figures are involved.

While the newer aircraft are more fuel efficient they are also a great deal more expensive to lease. You've decreased one cost (fuel) but increased another (leasing costs). It isn't a case of "Instant profits". $500,000 buys a lot of fuel!

Without detailed financial information it is impossible to say what will happen with the introduction of newer aircraft.

All the more reason for an Independant Financial Audit - this will give an accurate picture of what to expect.

While I completely agree with you that UL really is a waste of public money I cannot agree with your assertion that $500,000 buys a lot of fuel.

A340-300 has a fuel cost of about USD 32 per NM while the A350-900 is predicted to have a cost of USD 27 for the same distance, without even taking in to account the fact that the A359 can carry around 20 passengers more. This works out to a saving of USD 5 per NM and in a month it will easily save over USD 1.5 million in fuel costs alone.*

*Assuming a daily CMB-LHR flight of approximately 5000NM - Return (5,000NMX2tripsX30dayXUSD 5)

Change the UL's Management. abolish MIHIN and merge it with UL as a one Company . Then make a regional wing of Srilankan Airlines to operate as a LCC.

We can make profits or at least reduce lost even before new Aircrafts comes in.

@Cayman

The A350 will certainly save fuel vs A340. No issue there.

My point is that because there is huge difference in lease costs between the A340 and A350 the cost savings are going to be a lot less. It isn't some magical solution to profitability as is repeatedly mentioned.

Corrected calculation 4400nm x 2 x 30 x5 = $1,320,000/month in fuel savings. Subtract the difference in leasing costs leaves you with $820,000 in savings.

With losses of $13,000,000+/month this is only going to make a 6-7% difference. Savings could very well be less if the difference in lease costs is more than $500,000/month.

(Historical note:- Senior UL Captain told me the same fuel efficiency argument was used when the Tristar was replaced by the A340)

@Srilankan1

Too little too late IMHO.