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SriLankan will not crash: Aviation Minister
Friday, 23 October 2009 - 8:19 PM SL Time
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Ports and Aviation Minister Chamal Rajapaksa told Parliament yesterday that the national carrier Sri Lankan Airlines has been affected by the global recession, as have all other airlines in the region.
Responding to a question by Chief Opposition Whip Joseph Michael Perera about the profitability of the airline, claiming that a March 31 annual report had said the airline was not profitable Minister Chamal Rajapaksa said the profit of Rs. 4.4 billion mentioned in the report was revenue collection brought in by re-leasing airlines.
Mr. Rajapaksa pointed out that several airlines in the region including Japan Airlines, which suffered a loss of US$1.4 billion, Singapore Airlines that suffered a loss of US$26 million, Cathay Pacific, whose losses amounted to 165 million dollars last year. Other airlines including Thai Airways, Malaysian Airlines and Air India too have suffered losses, he added.
The Minister assured the House however that SriLankan Airlines would not crash as alleged in an audit query, that the opposition quoted as proof that the national carrier would be a non entity by the end of the year. We are doing everything possible to revive the airline, the Minister assured.
Mr. Rajapaksa said a number of measures have been taken to revive the airline. He said a new marketing plan has been drawn promote the airlines while unprofitable routes have been suspended, and new profitable routes are introduced instead.
Among the other steps taken to increase profitability are improving the quality of catering services provided to other airlines. He said because of these improvements the subsidiary company SriLankan Catering Services had recorded a profit of Rs. 1.2 million this year.
He said another reason to be optimistic is that their transacting partners, including suppliers of planes to the airline, have not made any unfavorable demands adding the current fleet of planes run by the company comprised three A320 airbuses, four A330s and five A340s. The Minister pointed out that Mihin Lanka too had been put back on track as it has grossed a revenue of US$1.8 million as at August.
Chief Opposition Whip Joseph Michael Perera who made a statement in the House on the issue said the report attached to the annual accounts had questioned the viability of the company. He called on the government to bring the airline back on track and clear the doubts in the minds of its employees and the public as soon as possible.
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Imperator
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 23 Oct 2009 13:42:37 GMT Report for Abuse
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Ports and Aviation Minister Chamal Rajapaksa told Parliament yesterday that the national carrier Sri Lankan Airlines has been affected by the global recession, as have all other airlines in the region.
And still Mihin Air was given the go-ahead. Thamusela kohen genaapu punakku de kanne? |
ModGoviya
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 23 Oct 2009 13:42:52 GMT Report for Abuse
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SriLankan SHOULD not crash, but whether it will or not depends on the management. Ideally, SriLankan and tourism should be under the same minister. (but then how to make portfolios for the plethora of ministers?)
I did a quick survey of the SL holidays advertised in UK, and only a very few had SriLankan as the carrier. But there were great deals, without any doubt making money for the other airlines.
It should be a matter of identifying lucrative locations, and merging with the tourism industry at that site. However UL seem to be putting up a flight and expecting it to fill with passengers, like a private bus. It is true that a lot of airlines lost during the recession but some, like virgin atlantic, actually showed an increased profit margin. Somebody has to have an idea about the big picture, and adjust to the new conditions. |
slmate
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 23 Oct 2009 13:43:21 GMT Report for Abuse
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Sri Lanka National carrier is now incurring profits, says government
http://www.colom0page.com/archive_091/Oct1256219193RA.html
Oct 22, Colombo: The Minister of Ports and Aviation Chamal Rajapaksa today said that the country's national air line, SriLankan is now incurring profits under the government's management.
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slmate
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23 Oct 2009 13:44:48 GMT Report for Abuse
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SriLankan Airlines says bookings up, to increase flights
http://www.lankabusinessonline.com/fullstory.php?nid=258647227#atuid-4ab750252564663d
Oct 21, 2009 (LBO) - SriLankan Airlines said it will increase flights this winter season to a dozen cities throughout Europe, the Middle East, the Indian subcontinent, and Far East as bookings were on the rise.
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slmate
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23 Oct 2009 13:46:18 GMT Report for Abuse
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All the Airlines around the world are crashing..
Sri Lankan is one of the few Airlines that is survivng without a government bailot..
Japan Airlines makes a record loss..
Loss-making Japan Airlines (JAL) could receive up to 100bn yen ($1bn 635m) in state aid
http://news.bbc.co.uk/2/hi/business/8112362.stm
Quantas records historic loss..
Qantas posts first half year loss in six years
http://www.centreforaviation.com/news/share-market/2009/08/19/qantas-posts-first-half-year-loss-in-six-years-air-china-tumbles-following-cathay-pacific/page1
Air India bailed out by government to prevent collapse..
Air India posted Rs 448-cr net loss in 2006-07: Patel
http://www.thehindubusinessline.com/2008/02/29/stories/2008022950370700.htm
Biggest ever loss at British Airways..
High costs fuel record loss at BA
http://news.bbc.co.uk/2/hi/business/8062844.stm
Alitalia loss increases..
Alitalia's loss increased due to high fuel costs
http://peakoil.com/modules.php?name=News&file=print&sid=15157
Lufthansa makes a record loss..
Lufthansa loss of 44 million euros in Q1
http://www.boarding.no/art.asp?id=36261
Singapore AirLines makes historic loss..
Historic loss for Singapore Airlines
http://news.bbc.co.uk/2/hi/business/3110251.stm
Thai Airways posts historic loss..
Thai Airways posts record loss in Q4
http://www.reuters.com/article/rbssAirlines/idUSBAK00069220090227
Air China and Cathay Pacific make losses..
Air China tumbles following Cathay Pacific
http://www.centreforaviation.com/news/share-market/2009/08/19/qantas-posts-first-half-year-loss-in-six-years-air-china-tumbles-following-cathay-pacific/page1
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ModGoviya
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23 Oct 2009 13:54:45 GMT Report for Abuse
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All the Airlines around the world are crashing..
True, but sri lanka is one of the locations to which the tourist influx has increased. The question is whether SriLankan is doing enough to get its share off that. |
slmate
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23 Oct 2009 13:56:14 GMT Report for Abuse
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Sri Lankan is one of the best managed Air Lines in the world..
Sri Lankan is continuing as a viable busines entity without any goverment bailout when all the other major airlines around the world are bailed out by their goverments to prevent from crashing..
It is unbelievable how Sri Lankan managed to survive with all the unfavourable factors affecting its business..
The record oil prices..
Low passenger numbers due to global recession..
Adverse effects of the war..
High insurance premiums due to war..
Everyone must congratulate Sri Lankan for surviving in these tough times..
I think the company has turned a corner with crushing of the LTTE and dawning of peace..
The good times are ahead for Sri Lankan.. |
AnuD
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 23 Oct 2009 14:10:24 GMT Report for Abuse
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SriLankan will not crash
It can not crash as long as poor people working in the middle east keep on sending money.
I don't believe that the same owner can maintain two competing airlines. |
ModGoviya
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23 Oct 2009 14:19:07 GMT Report for Abuse
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Sri Lankan is one of the best managed Air Lines in the world..
I have my reservations.
I am in no way an expert in aviation industry, but if the air travel to a country increases, but the national carrier is not getting the lions share, something should be amiss. |
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23 Oct 2009 14:09:45 GMT