SriLankan’s new fleet order out of compulsion, not necessity
SriLankan Airlines this week began taking delivery of the first of six A320neo aircraft, an investment decision made by former airline executives though such a decision is not recorded in any of the annual reports of the airline during the Mahinda Rajapaksa-led government.
SriLankan Airlines CEO Suren Ratwatte confirmed on Friday that the airline was compelled to take delivery of these aircraft due to the former management’s decisions.
He noted that these initial orders were signed in 2013/14 at high prices but since the airline had already cancelled its planned orders for four long haul aircraft they were compelled to take on these new aircraft that are part of the Airbus neo family.
According to the airline’s 2013/14 annual report, “Our plan envisages the replacement of the A340-300s and the A330-200s commencing in 2014, with 6 A330-300s and 7 A350-900s respectively. We are also progressively evaluating our future narrow-body aircraft fleet, with a possibility to increase the overall fleet size.”
Mr. Ratwatte insisted that, “we should not be taking any new aircraft at all”, but added that they had “no choice” but to accept it.
According to the latest 2015/16 annual report, the rental cost on all leased aircraft was Rs.20,129.91 million, up by 23.4 per cent from the previous accounting year.
The total of six aircraft, he explained “is priced dear for our revenues” and the order book goes until mid next year.
Mr. Ratwatte noted that the airline’s present management had already been engaged in cancelling four of A350-900 aircraft that were also pre-ordered and stated that they could not be involved in getting anymore cancellations on the new aircraft as well. As a result the airline has been compelled to take delivery of the neo aircraft.
The new A320neo and the A321neo aircraft the first of which was delivered last month represent an increase in capacity and which are configured for 150 passengers in a two-class cabin layout with 12 business class seats and 138 economy class seats.
The aircraft in addition to the others that would be delivered over the course of this year will ensure that SriLankan Airlines could increase its frequencies to Delhi, Mumbai, Kuala Lumpur and Bangkok in addition to a few new destinations to be announced soon, Mr. Ratwatte said.
The airline will see the addition of two A320neo and four A321 neo aircraft joining the fleet in a little over a year. The second A320neo will arrive in April 2017 followed by the first and second A321neo aircraft in the second quarter. The third A321neo is to arrive before the end of 2017, with the fourth A321neo due in the first quarter of 2018.
SriLankan Airlines had taken delivery of seven A330 – 300 aircraft in January last year replacing their A340-300 aircraft after a period of 21 years also based on a previous order.