Business Times

SriLankan wants autonomy to restructure


Picture of the new uniforms and (inset) the old uniform. Pix by Gemunu Wellage

The government is negotiating with Dubai-based Emirates to buy its stake in Sri Lankan Airlines, the state-run national carrier, in a bid to secure autonomy to restructure the airline, a SriLankan official said.

“The airline is now on a restructuring mode and with complete ownership they can do that, which is why the Treasury is trying to buy the Emirates’ 43.6% which is estimated to about Rs 1.5 billion,” he said. Emirates bought a 40% holding in SriLankan 12 years ago and increased it to 43.6%. The original stake was for US$ 70 million.

On Tuesday, the airline changed the uniforms of its front line staff - part of their restructuring drive. SriLankan had saved Rs. 6 billion through its restructuring and cost saving measures implemented last year while its Business Turnaround Plan saw the company taking many initiatives.

“The restructuring saw the passenger and cargo revenue generation, restructuring of route network, savings through increased fuel efficiency, reducing company fixed costs, renegotiating of contracts with service providers, optimizing of sales channels, careful targeting of publicity efforts, reduced IT and communication cost and increasing productivity while focusing on People, Processes, and Technology last year," the official said.

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