SriLankan Airlines submits its details and ideas on restructure
View(s):Sri Lanka’s national carrier, following Prime Minister Ranil Wickremasinghe’s announcement that the government was looking to partner Sri Lankan Airlines with a foreign airline, in an effort to convert the airline into a profit making venture, has submitted its financial statistics, restructuring and in general their view on the restructure, Chairman Aji th Dias said.
“We submitted all details including the financial position and our ideas on the proposal restructure,” he told the Business Times.
The Ministry of Public Enterprise Development is gearing to issue Request for Proposal (RFP) to select a financial advisers in this regard, he said. Financial advise to restructure the national carrier is being coordinated by National Savings Bank, which acts as the lead manager. He said once the RFPs are short listed, based on their proposals, the airline will look for a suitable plan.
The state will absorb the Sri Lankan Airlines debts amounting to a staggering US$ 3.2 billion and has also ordered the airline to immediately cancel the order of four A350 aircraft.
Mr. Dias said they have disposed one and discussing with many airlines on how to dispose the balance three A350 aircraft “We’re trying to negotiate the best terms,” he said.
SriLankan which recorded a profit of Rs. 4.4 billion in 2008 took a disastrous nosedive thereafter having suffered a whopping loss of amounting to Rs. 140 billion as at March 31, 2016, according to the government.