Govt. appoints international consultant to restructure SriLankan Airlines

 Ports, Shipping and Aviation Minister Nimal Siripala

• Aviation Minister Nimal Siripala de Silva assures benefits to materialise by February 2024
• Says job security of 6,000 employees remains key priority in restructuring process
• Points to absence of A330 aircraft in fleet pose limitations on services to UK, France, Australia
• Discloses majority of existing fleet comprises A320 aircraft not apt for long-haul or remote operations
• Acknowledges recent operational setbacks led to $ 6 b losses
• Claims SriLankan Airlines pilots have less monthly flight hours compared to other airlines
• Suggests establishing culture of accountability and responsibility to address discrepancies

Ports, Shipping and Aviation Minister Nimal Siripala de Silva said the Government has enlisted the expertise of an international consultant, who will bring valuable insights and best practices to guide the restructuring efforts of the national carrier, SriLankan Airlines.

“To maintain transparency, the decision was made to engage an international consultant, whose appointment has now been confirmed. 

Active steps are underway to expedite the restructuring, with anticipated benefits expected to materialise by February 2024,” he told journalists at the President Media Centre (PMC) on Monday.

Noting that the Cabinet recently approved the restructuring plan, he said collaborative discussions have taken place with the World Bank to facilitate the process.

He elaborated that the comprehensive restructuring plan for the national carrier is geared towards reinforcing the airline's operational efficiency and financial performance and a key priority during this process is to safeguard the job security of the around 6,000 employees of the airline.

“A critical aspect to consider is that SriLankan Airlines presently operates with leased aircraft, without any owned aircraft in its fleet. Acquiring new aircraft is a time-consuming process, typically involving a year-long wait post-order. The absence of A330 aircraft in the current fleet poses limitations on services to destinations like UK, France, and Australia. The majority of the existing fleet comprises A320 aircraft, which are not suited for long-haul or remote operations. Thus, the restructuring of the airline is crucial to address these challenges effectively,” the Minister explained.

He acknowledged that the recent operational setbacks have led to substantial losses of around $ 6 billion. 

“While unions have attributed these delays to technical faults, it is crucial to highlight that pilots must be certified by a qualified aeronautical engineer before undertaking flight operations. Pilots of SriLankan Airlines have much less flight hours per month than their counterparts in other airlines. Establishing a culture of accountability and responsibility is necessary to address these discrepancies and ensure that everyone shares in institutional success,” he pointed out.

As per the Minister, the monthly salary for pilots in SriLankan Airlines stands at Rs. 4 million. 

“Given that demands for better pay have been made, comparisons with the compensation packages provided by major international aviation companies must take into account the existing situation,” he added. 

Minister de Silva also said Tata's acquisition of Air India, which includes orders for 250 Boeing 777 aircraft, opens doors for potential collaborations. “These alliances, potentially with regional airlines, hold promise for securing the future prospects and rights of the airline's 6000 employees, ultimately strengthening the industry's position,” he added.