SriLankan Airlines will make healthy profits this financial year, said CEO of the national carrier Richard Nuttall at an aviation workshop yesterday.
He said during the last financial year too, the airline was on its way to a breakeven point but missed it due to several issues beyond their control. “The airline had to face a huge fuel crisis due to the non availability of aviation fuel in Sri Lanka and had to fly to Indian airports for refuelling.”
In addition due to the economic crisis and street protests many airlines opted out of flying to Sri Lanka which hampered the other revenue generating business verticals like ground handling and catering.
There were many adverse travel advisories and resulted in reducing incoming passenger traffic to Sri Lanka. “These too had a dip on our profits.” High cost of aviation fuel during the last financial year also had a negative impact in profits. He said that during the current financial year most of the problems the airline faced have reduced. “We have fuel at a lower price and don’t have to fly to India to get them anymore. Tourism is picking up at a praiseworthy pace and we see more passenger movements.”
The CEO said that the most encouraging factor is the current high airfare the industry is facing which is certainly helping to increase revenue. “We have made more revenue quarter to quarter this financial year than the previous year and the positive trend will continue.”
He however said that with more airlines increasing their fleet, airfares may come down in the next two or three years and due to this they may not be able to post very healthy profits after two years. Asked to comment by Daily News Business on the current debt of the airline he said it was high. “However with the government we are addressing this issue and with regard to payments due to State banks and Ceylon Petroleum Corporation we are looking at a longer term to pay them back.”
The same model/wayforward would be adopted towards foreign debt as well. He said they are pleased with Indian traffic and for long haul flights like Australia 40% of traffic is fed by Indian passengers.
“If we have more aircraft we can get more profits but the overall industry is short of aircraft and also engines.”
Nod to recruit pilots from overseas
For the first time SriLankan Airlines has obtained approval to recruit pilots from overseas to fill the current vacancies.
“We hope to recruit around 30 pilots this year and next year we will enroll around 50 pilots from overseas,” he disclosed. Nuttall stressed that they will be given the same salary package as given to local pilots. However they will be provided housing. “I must say that the local pilots are not paid ‘badly’ but international airlines offer them more.”
“Last year SriLankan lost about 60 pilots due to various reasons including retirement and also for better salaries”, said Manager SriLankan Buddhika Hewawasam. SriLankan airlines currently has 143 pilots and several junior cadet pilots are being currently trained. The airline has around 25 to 30 female pilots including three female captains. (SS)
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