SriLankan Airlines hosts largest GSA conference
SriLankan Airlines, the national carrier in an attempt to increase arrivals to the country, organised a conference of foreign General Sales Agents and travel and tour operators this month, while struggling under an unsustainable debt burden.
The airline held a Global Sales Conference this month during a four-day programme that saw the largest contingent of 170 from the travel industry to Sri Lanka and were taken on tours around the country with the aim of clearing the wrong perceptions about the current status of the country.
SriLankan Airlines CEO Richard Nuttall told a media briefing in Colombo at the airline’s Colombo office that the main concern that Sri Lanka is facing now is the bad press in other countries that is showcasing the country as an unsafe destination and which is the main reason that travellers are shying away from Sri Lanka.
He pointed out that the challenge is not so much in marketing the destination as much as it is a concern that the foreign media highlights Sri Lanka as an unsafe location.
“We brought all agents here and none has seen a fuel queue,” Mr. Nuttall explained adding that following this visit the tour operators were not simply interested in selling the destination but also in bringing their own families to holiday in Sri Lanka.
The conference held several interactive sessions with experts from the industry with sessions focusing on the airline’s history; Sri Lanka’s status as a destination for transformative travel; and the premiere of the destination video “Around the Island.”
Meanwhile, the airline hopes to increase its fleet of aircraft having about 19 flying out of 24 with about two under heavy maintenance and three on the ground for engine replacements.
At the moment they want to ensure they can replace at least 10 aircraft for which they will be seeking cabinet approval to lease out aircraft, Mr. Nuttall said.
Further the carrier has plans to increase frequencies to London with double daily flights and also to Singapore, Thailand, Malaysia, Sydney, Korea and India. The airline wants to focus on Korea as a new tourism destination.
The airline is currently operating on funds generated from its own operations with no funding from the government since March/April 2021, the CEO said.
The airline’s costs have increased as a result of the growing increases in prices like the fuel bill that was at US$20 million in January and by August had increased to around $40 million.
Further the carrier has to generate funds to servicing its debt of the year that is currently at around $100 million.
“We can’t shrink. So we need to at least maintain to look favourable to an investor,” he explained responding to a query on the need to increase its fleet.
SriLankan Airlines looks to three sources of revenue generation from the diaspora, general tourism traffic and the East and South Indian traffic.
In the meantime, the carrier is also seeing an exodus of airline staff as a result of the current situation in the country, Mr. Nuttall said.
He noted that with the restrictions placed on hiring by the state they are now beginning to face some concerns in this area as a lack of pilots is a cause for concern.
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