Plan by SriLankan Airlines to lease 21 aircraft draws criticism
An engineer cleans an Airbus 340 at the Sri Lankan Airlines maintenance hangar at the international airport in Katunayake, Sri Lanka, February 10, 2014. (REUTERS / Dinuka Liyanawatte)
A plan by Sri Lanka’s state-owned national airline to lease nearly two dozen aircraft has sparked public criticism and opposition condemnation as the country struggles with its worst financial crisis in decades.
Sri Lanka is struggling with low reserves that have declined more than 70% over the past two years to $1.93 billion at the end of March.
The dollar crunch has caused acute shortages of fuel, food and medicines, with rolling power cuts for hours a day for more than a month.
On Tuesday, Sri Lanka suspended some external debt repayments and said it would instead use meagre dollar cache to focus on essential imports.
Protesters demanding President Gotabaya Rajapaksa resign have been staging daily sit-ins outside his office. read more
Tender notices for the lease of 42 aircraft were published on the airline’s website on Thursday.
SriLankan Airlines has been struggling with a fall in tourism because of the COVID-19 pandemic and the economic crisis.
In 2019/20, SriLankan Airlines reported a loss of 44.14 billion Sri Lankan rupees ($140.90 million) against 41.70 billion Sri Lankan rupees in the previous year.
“This must be a joke?!,” a member of parliament from the main opposition Samagi Jana Balawegaya (SJB) alliance, Harsha de Silva, said in a post on Twitter.
“Sri Lanka is bankrupt; no fuel, gas or medicine. Where the hell is money for this nonsense?! Better immediately clarify.”
Another opposition party, the United National Party (UNP), demanded that the carrier cancel the proposal while numerous Sri Lankans expressed their disapproval online.
“What good is new aircraft when you won’t have fuel to fly,” said Twitter user Shiv Theyagamurti.
The airline’s chairman, Asoka Pathirage, said the carrier was looking for 21 planes to lease in an initial round as part of its 2022-2025 business plan to replace aircraft that would be phased out of its existing fleet.
“We are only looking at availability in the market. SriLankan Airlines will finance these leases and we will not depend on funds from the government,” he told Reuters.
“The airline has been making profits. We do have debt but we have to make money to repay them.”
The government will begin talks with the International Monetary Fund for a loan programme on Monday.
(Reuters)
Latest Headlines in Sri Lanka
- Senior Professor Rathnayake appointed to restore order at University of Ruhuna November 24, 2024
- Sri Lankan fishing vessel seized with massive drug haul in Maldives November 24, 2024
- Audit reveals misuse of electric vehicle permits for migrant workers in Sri Lanka November 23, 2024
- IMF approves third review: Sri Lanka secures $333 million tranche under EFF November 23, 2024
- Sri Lankan President urges accountability and unity for a better future November 23, 2024
Last week I flew from Colombo to London with Srilanken airways. The only good thing was the crew who was curtseys and helpful. Asoka Pathirage, and his idea of making a profit out of a loss making airline is to run it like a short distance budget airline like Easy Jet. The leg room was shortened to make room for more seats. Only 4 toilets available to about 350 passengers. Half along the journey two toilets were out if action. Most of the passengers entertainment system never worked. The food was just like back street café standard.
I am waiting for the middle east air lines to resume normal service to Sr Lanka as at the moment there is a staff shortage due to Covid situation.
Asoka Pathirage, you cannot run a long distance airline like Srilanken train and bus services. My advice to you is don’t buy any more aircraft. When Thailand end their Covid restrictions I don’t think you will get a fraction of the tourist you get now. The return airfare to London to Colombo is about £700 and to that of Bangkok is £500 and the tourist get a better and cheaper deal in Thailand.