SriLankan
may pull out of Abu Dhabi
SriLankan Airlines is considering pulling out of Abu Dhabi after
having sharply cut its ticket prices on the route following increased
competition, The Sunday Times FT learns.
The
national carrier is also contemplating entering the United States
market through a code sharing arrangement with its partner Emirates
from London to USA. Currently SriLankan Airlines flies twice a week
to Abu Dhabi while Gulf Air has daily flights.
The
latest competitor is Abu Dhabi-based industry newcomer, Etihad Airways,
which is the national carrier of the UAE, flying thrice weekly.
Colombo is the fourth destination for Etihad and its first route
outside the Middle East.
Officials from the national airline said SriLankan was contemplating
withdrawing from the route, as there is now more supply than demand
on the Abu Dhabi route.
They said that there are not more than 300 passengers a week to
Abu Dhabi. Furthermore, authorities say that since the introduction
of business class, there has been very little to differentiate one
airline from another.
This concern has emanated from all airlines operating from Abu Dhabi
and now competing on pricing.
SriLankan Airlines last month brought down its prices to Rs. 10,000
from Rs. 15,000 one way on the Abu Dhabi sector. |
