Another waste of time imho. What exactly is there to restructure?

- Leases with no termination clause? No.
- 4 A350 with no termination clause? No.
- Layoffs? No.

Vision?Mission Objectives Strategies?Cooperate plan?Action plan? As far as I can see - none of these things exist.

I'll take a wild guess what the next plan to be rolled out will be:-

Search for a foreign partner.

The “Christmas Tree” that is costing SriLankan airlines Rs 100mn a month

Colombo (News 1st) -Sri Lankan airlines, continues to pay over 100 million rupees on a monthly basis, for an unused aircraft that is currently parked at the Katunayaka airport. The airlines’ trade unions say that this loss is the result of wrong decision making, in the process of procuring new aircraft to the national carrier.

In 2013, Sri Lankan formed an agreement with an aircraft leasing company named Aercap, to purchase four A350 – 900 type planes, and lease another three. While the order to manufacture the four aircraft had already been given to the foreign company, following the government change, the present government decided to cancel this agreement.

While the government was compelled to pay 98 million USD to Aercap company as compensation for the cancellation of this order, the cancellation agreement also included a few more conditions.

As a consequence of the cancellation, then CEO of SriLankan Suren Rathwaththe agreed to the procurement of an A330 -200 aircraft.

Janaka Wijeyapathirana chairman Sri Lankan Nidahas Sewaka Sangamaya of Sri Lankan Airlines stated that the airlines agreed to purchase an aircraft that every other airline company refused to accept. He noted that after signing the agreement, the respective aircraft was brought to the Katunayaka airport six months ago. However, since then the aircraft was never used for a single flight.

In addition, he stated that the government has already wasted millions of public funds to maintain the aircraft. Public funds worth nearly Rs 100 million is spent on this aircraft every month, the aircraft has been named Christmas tree. He further noted that spare parts are taken from the Aircraft and used for other aircraft. The aircraft has become a huge burden to the national carrier. The trade union revealed that while the plane is valued at $ 137mn, Sri Lankan airlines has already paid compensation amounting to a total of $98mn. The Trade unions charge that SriLankan could have procured a brand new aircraft with the money that was wasted.

Whilst a vast sum of money was spent on cancelling the deal and another 100 million rupees is being wasted every month on an unused aeroplane, the manner in which this agreement was reached is also astounding. An email addressed to the chairman by then CEO, Rathwaththe, dated 3rd October 2016, reveals that the prime minister had recommended that the former should CEO advise the chairman to proceed with the respective transaction.

Janaka Wijeyapathirana stated that on the 7th of November, the President had informed the prime minister that cabinet approval needs to be obtained for the cancellation of the agreement and requested that a cabinet memorandum be presented to the cabinet. He noted that on the 17th of November the prime minister’s office had informed the Ministry of Enterprise Development, under which Sri Lankan airlines then operated, to present this cabinet memo. However, all of this was done after the agreement was cancelled. The agreement was cancelled on the 4th of October 2016.

Wijeyapathirana also revealed that on the 3rd of October 2016, then SriLankan Chairman Ajith Dias sent an email to several email addresses informing that the PM had decided to cancel the agreement. He went on to note that It is clear that the cancellation of this agreement did not take place legally, and was through the direct intervention of the prime minister.

Hasantha Yasarathne General Secretary of SLNSS stated that an individual named Dr Rajan Sara joined the discussion on the cancellation of this agreement. He took part in the meeting despite not being a member of the Ministry of Finance, but merely a minister’s friend. It reveals that this was a suspicious transaction. Yasaratne alleged that kickbacks may have been obtained through the cancellation of this agreement as well.

It's possible the aircraft may once again be sub-leased to HiFly for the Summer. If negotiations are being conducted that would explain the delay in the painting.

Just one of many possibilities.

This aircrafts is capable of Package tours and Haji/Umrah pilgrimage only. It's has a worst cabin layout for a long haul aircraft. Sub leasing is the only option available.

Delay to return leased aircraft: SriLankan incurs US$12mn loss

Aercap leases unusable aircraft to SriLankan Airlines

Aercap leased an unusable A330 aircraft to state-run SriLankan Airlines as part of a deal reached in 2017 with the then management, which the carrier said it was then forced to sub-lease to another airline.

The A330-200 aircraft was leased as part of a settlement involving the cancellation of A350-900 aircraft, which the airline also decided it could not use.

The A330-200 made in 2009, was unusable as there was not enough space between business class seats, the airline said.

The aircraft had been sub-leased to a European airline which had defaulted on payments. SriLankan Airlines engineering division also had to make the aircraft ready to fly, the statement said.

SriLankan was trying to find another airline to sub-lease the aircraft. In the meantime one of its engines had been removed and fitted to another in the fleet, whose engine required maintenance, the airline said.

The current management says it was not involved in ordering the A350 aircraft which were cancelled or leasing unsuitable A330 in its place.

The payment of penalties of around 100 million US dollars to Aercap had raised controversy at the time. (Colombo/Jan18/2018)

SriLankan shifts London office

SriLankan Airlines has shut down its main office in London since last week and moved into a low cost location.

Airline officials stated that the carrier had adopted cost cutting measures as a result of which the new office space is located in a relatively low cost location which some in the tourism industry claim to be similar to an Internet café.

Currently SriLankan Airlines is operating about 10 frequencies weekly to London and the tourism industry believes that this kind of relocation at a crucial juncture when they have increased traffic did not hold well for Sri Lanka’s positioning in flying into an important market. (Sunimalee)

All of the above doesn't paint a pretty picture of the Airline or the so called "Management"

One epic fail after another.

They've actually issued a press release about renewing their IOSA. They've failed to mention that they initially failed the audit.

I imagine we'll never know what the IOSA fiasco has cost in lost revenue - my guess is all code shares were suspended and other clients may not have booked trips on UL as IOSA certification is normally a requirement.

Wonder how close they were to getting kicked out of OneWorld? This will certainly have raised some red flags.

Let me guess - 4R-ALS leased without a termination clause? Only thing that makes sense.

IATA renews SriLankan Airlines’ IOSA registry

The International Air Travel Association (IATA) has renewed the IATA Operational Safety Audit (IOSA) registry of SriLankan Airlines for a further two years up to December 4, 2020.

IOSA is the global airline industry’s benchmark for an airline’s operational management and control systems.

SriLankan Airlines has a tradition of adopting and adhering to the highest standards and benchmarks in all areas of airline operations, and had its IOSA registry renewed again following a stringent audit process, a spokesman for the Airline said.

Conforming to IOSA’s high standards needs a collective, concerted and continuous effort by thousands of employees throughout the airline’s global network will strengthen the confidence of its customers and industry partners that SriLankan continues its sterling record throughout its operational and control systems.

SriLankan in 2006 became one of the first airlines in Asia to obtain IOSA registry, which is renewed every two years.

The IOSA Standards and Recommended Practices contain a thousand standards that are continuously improved upon which IATA member airlines are required to comply with. SriLankan’s Safety Management System is compliant with the IOSA standards.

IATA is an authoritative body that counts 290 member airlines in 120 countries, which carry 82% of the world’s air traffic, both passenger and cargo.

SriLankan Airlines, the national carrier of Sri Lanka, is a member of the Oneworld Global airline alliance, and an award-winning airline with a firm reputation as a global leader in service, comfort, safety, reliability, and punctuality.

Launched in 1979, the airline’s hub at the Bandaranaike International Airport in Colombo, provides convenient connections to its global network (including codeshare partners) of 111 destinations in 48 countries around the world.

Its direct route network covers major cities across the Middle East, the Subcontinent, South East Asia, the Far East, Europe and Australia.

The airline operates an all-Airbus fleet that includes state-of-the-art A330-300 and modern A320/321 neo aircraft.

Why a Sri Lankan Airlines A330-200 is parked in Colombo with one engine missing?

A Sri Lankan Airlines Airbus A330-200 has been parked at Colombo Bandaranaike International Airport with one engine missing and is not moving.

The Airline said in a statement that it “wishes to clarify its position with regard to the utilization of one of its Airbus A330-200 aircraft bearing the serial number MSN-1008 and CAASL registration number 4R ALS.”

This aircraft was acquired in 2017 as part of the conditions agreed to between the previous management of the airline and aircraft lessor Aercap, as a settlement against the cancellation of the order of four new Airbus A350-900 aircraft.

However, the cabin configuration of this aircraft, which was manufactured in 2009, is not suitable for SriLankan Airlines’ operations, having many seats and minimum space between seats in its Business Class cabin.

All other aircraft in the SriLankan Airlines fleet operate a two-class configuration of Business and Economy classes, with a particular standard of comfort in seating.
The previous management, therefore, took a decision to lease this aircraft to a European airline. However, after some time, this European airline violated the lease agreement by defaulting on the lease payments. The lessee also did not fulfill its obligations under the lease contract to prepare the aircraft for the handover.

The engineering team at SriLankan performed the required maintenance checks to make the aircraft ready to fly.

The management is also exploring the possibility of sub-leasing this aircraft to a charter operator or to another airline. Until such time, the aircraft remains at BIA as part of the SriLankan fleet, although it is not in use due to the above-mentioned reasons, SriLankan Airlines said.

It is a standard practice in most airlines that various interchangeable parts or components such as the engines that are urgently required for an operational aircraft are taken out of aircraft that are not in immediate use, if such parts are not at the time in stock in the airline’s spare parts stores.

SriLankan has removed one of the engines from this aircraft and fitted it to another aircraft as one of its engines is undergoing some maintenance work. These parts would be replaced prior to the aircraft being leased to another airline, once such a lease agreement is signed for the use of this aircraft.

The present management of SriLankan Airlines stressed that it was not involved in the decisions with regard to the ordering of the A350-900 aircraft, which took place in 2013; or the cancellation of the order in 2016; or of the acquisition of the A330-200 aircraft 4R ALS which is unsuitable for the airline’s present business model.

“The management is attempting to optimize the usage and return on investment on this aircraft, as with any other asset of the airline. Management is also taking the necessary steps to recover the losses to the airline from the relevant parties,” SriLankan said.

SriLankan Airlines says idling Airbus A330-200 aircraft 4R ALS unsuitable for its business model

Jan 19, Colombo: Sri Lanka's national carrier, Sri Lankan airlines clarifying its position with regard to the utilization of one of its Airbus A330-200 aircraft idling at the main Bandaranaike International Airport, yesterday said the aircraft's cabin configuration is unsuitable for its business model.

The Airline said in a statement that it "wishes to clarify its position with regard to the utilization of one of its Airbus A330-200 aircraft bearing the serial number MSN-1008 and CAASL registration number 4R ALS."

This aircraft was acquired in 2017 as part of the conditions agreed to between the previous management of the airline and aircraft lessor Aercap, as a settlement against the cancellation of the order of four new Airbus A350-900 aircraft.

However, the cabin configuration of this aircraft, which was manufactured in 2009, is not suitable for SriLankan Airlines' operations, having many seats and minimum space between seats in its Business Class cabin.

All other aircraft in the SriLankan Airlines fleet operate a two-class configuration of Business and Economy classes, with a particular standard of comfort in seating.

The previous management therefore took a decision to lease this aircraft to a European airline. However, after some time, this European airline violated the lease agreement by defaulting on the lease payments. The lessee also did not fulfill its obligations under the lease contract to prepare the aircraft for the handover.

The engineering team at SriLankan performed the required maintenance checks to make the aircraft ready to fly.

The management is also exploring the possibility of sub-leasing this aircraft to a charter operator or to another airline. Until such time, the aircraft remains at BIA as part of the SriLankan fleet, although it is not in use due to the above-mentioned reasons, SriLankan Airlines said.

It is a standard practice in most airlines that various interchangeable parts or components such as the engines that are urgently required for an operational aircraft are taken out of aircraft that are not in immediate use, if such parts are not at the time in stock in the airline's spare parts stores.

SriLankan has removed one of the engines from this aircraft and fitted it to another aircraft as one of its engines is undergoing some maintenance work. These parts would be replaced prior to the aircraft being leased to another airline, once such a lease agreement is signed for the use of this aircraft.

The present management of SriLankan Airlines stressed that it was not involved in the decisions with regard to the ordering of the A350-900 aircraft, which took place in 2013; or the cancellation of the order in 2016; or of the acquisition of the A330-200 aircraft 4R ALS which is unsuitable for the airline's present business model.

"The management is attempting to optimize the usage and return on investment on this aircraft, as with any other asset of the airline. Management is also taking the necessary steps to recover the losses to the airline from the relevant parties," SriLankan said.

Nine traffic rights for airlines operating from Colombo to Mattala

All airlines which used to operate via Colombo to Mattala had been granted all nine air traffic rights since those airlines had refused to carry out their operations in Mattala Airport due to declining passengers and bird strikes. This was revealed at the Presidential Commission of Inquiry into irregularities at SriLankan Airlines, SriLankan Catering, and Mihin Lanka yesterday (January 14).

Director Air Transport and Economic Regulation of the Civil Aviation Authority Rehan Mario Wanniappa further informed the commission, that the Civil Aviation Authority issued 7 additional rights to Fly Dubai, to entice them to continue services at Mattala airport.

Speaking on temporary operating permits, the witness stated that such permits are issued due to insufficient time to form bilateral agreements, and the issue of such permits are not specifically stated in the law.

Wanniappa also informed the commission that a requirement to issue transit visas for hong kong based transit flights are currently underway and this issue has been raised at the Civil aviation authority of Hong Kong. He stated, however, that SriLankan does not fly to Hong Kong at present.

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SriLankan Airlines reportedly plans to suspend Colombo-Gan service from Apr-2019

Better late than never