The Airline said that the cancellation of the flights will result in a USD 47 million loss for the National Airline.
The Airline said that in the Financial Year ending 31st March 2016, the airline recorded a significantly improved performance compared to the previous year.
In a bold and informed step, the Airline, in conjunction with the relevant Government authorities, reversed a A350 aircraft deal which was signed in 2013.
“After careful consideration of a multitude of factors, including current and foreseeable future market conditions, the onset of fierce competition, the inherited adverse financial situation of the company, and the very high lease rentals of the A350 aircraft, it became clear that these aircraft could not be operated economically,” the Airline said.
Although significant one-off costs had to be agreed to in order to terminate the contracts, it was recognized that inducting and operating these aircraft would not augur well for a sustainable bottom line going forward.
“We have a clear blueprint mapping our trajectory to become a leaner and more efficient operator, which is being achieved steadily, after years of loss-making operations. More than anything else, we are proud of the culture of transparency and accountability that has been instilled in the organization which in time will restore the reputation enjoyed by the airline in the first few decades of its establishment,” The Chief Executive Officer of SriLankan Airlines Suren Ratwatte said.
When asked to comment on the Public Private Partnership (PPP) for the airline, Chairman of SriLankan Airlines, Ajith Dias, stated that the negotiation is being initiated by the Government which is negotiating with several prospective partners who have communicated their expressions of interest.
He said the objective of the company is to focus on re-structuring the airline in order to ensure a framework for sustainability is in place for a PPP that the shareholder will enter into. (Colombo Gazette)