Sri
Lanka is set to re-fleet its loss-making national carrier with 10 new Airbus
aircraft in a deal that could be worth over $1.3 billion, CeyNews reported.
The national
carrier has signed a Provision Deal (Memorandum of
Understanding) with Airbus for six A330-300s and four A350-900s. The airline,
an all Airbus operator, has chosen the highly reliable A330 and the latest
generation A350 XWB aircraft as part of its long-haul fleet renewal. Sri Lankan
Airlines fly with a 22-aircraft fleet including seven A320-200s, seven
A330-300s, six A340-300s and two Twin Otters.
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| To become profitable within next five years |
The twin engine A330 is one of the most widely
used wide body aircraft in service today. Airbus has recorded more than 1,200
orders for the various versions of the aircraft and nearly 1,000 aircraft are
flying with nearly 100 operators worldwide. The A330-300 has
benefited from numerous product improvements and stands as the most
cost-efficient and capable aircraft in its class, which is achieving average
dispatch reliability by above 99 percent by Airbus International. The A350 XWB is the all-new mid-size long
range product line comprising three versions and seating between 270 and 350
passengers in spacious three-class layouts.
The new family will bring a step change in efficiency using 25 per cent less fuel and providing an equivalent reduction in CO2 emissions. To date the A350 XWB has already won 613 firm orders from 33 customers worldwide by Airbus International. Sri Lankan, which had been managed by Dubai’s Emirates Airline for a decade until 2008, aims to achieve a modern and fuel efficient twin-engine fleet. This was done by replacing all six A340-300s with A330-300 aircraft and all seven A330-300s with A350-900s. Sri Lankan Airlines management would be looking at a lease period of 10 to 15 years, with a shorter period for the A330-300s and a longer period for the A350-900s. The management is talking to various (leasing companies) right now about the sale and lease-back on the six 330-300s.
The new family will bring a step change in efficiency using 25 per cent less fuel and providing an equivalent reduction in CO2 emissions. To date the A350 XWB has already won 613 firm orders from 33 customers worldwide by Airbus International. Sri Lankan, which had been managed by Dubai’s Emirates Airline for a decade until 2008, aims to achieve a modern and fuel efficient twin-engine fleet. This was done by replacing all six A340-300s with A330-300 aircraft and all seven A330-300s with A350-900s. Sri Lankan Airlines management would be looking at a lease period of 10 to 15 years, with a shorter period for the A330-300s and a longer period for the A350-900s. The management is talking to various (leasing companies) right now about the sale and lease-back on the six 330-300s.
The airline operates about 253 flights a
week out of Colombo to European, Middle Eastern and Asian destinations. Sri
Lankan Airlines estimates that it incurred a loss of $ 134.8 million in the
2012/13 financial year and is finding it difficult to finance new aircraft
purchases. It has the extra burden of having to operate unprofitable
European routes, because the country’s economy, hard-hit by a 26-year war that
ended in 2009, relies heavily on tourism. The
government approved an initial payment of $80 million for the re-fleeting of
the carrier which made a loss of $164 million last year. Sri Lankan
Airlines ended its management contract with Emirates of Dubai in 2008 and since
then has been making substantial losses.
