Reply To:
Name - Reply Comment
SriLankan Airlines could generate US $ 1bn in 3 months with strategic overhaul: Ex-CAA chief
 |
| Upul Dharmadasa |
By Nishel Fernando
SriLankan Airlines could generate US $ 1 billion in revenue within three months, if the right leadership and policies are in place, said former Civil Aviation Authority (CAA) Chairman Upul Dharmadasa.
Speaking to Mirror Business, Dharmadasa outlined a strategy for the loss-making national carrier’s revival, emphasising the need for skilled professionals who have left the country, expanded international routes and digital innovations to boost efficiency and revenue.
“SriLankan Airlines is an airline that can make over US $ 1 billion in three months. We need the right aviation professionals and policy continuity to achieve this,” Dharmadasa said.
Dharmadasa pointed out that expanding the key routes and improving asset utilisation could significantly benefit the airline. He specifically highlighted the opportunity to tap into the global Sri Lankan diaspora by operating flights to underserved destinations in North America.
“We can easily operate flights to destinations to these destinations that cater to expats and potential tourists. If we establish the right connections and scheduling, this will create a strong revenue stream,” he added.
Further, he pointed out that SriLankan Airlines could also explore opportunities in Caribbean countries where expat communities struggle to find air connectivity at a fair price. The reason is that a large number of expats are employed in the hospitality sector and air connectivity remains challenging for them.
Therefore, he suggested a Miami-Colombo route to serve these expats in the Caribbean as well as Sri Lankan expats in the United States.
Similar to the Fly America Act in the United States, Dharmadasa proposed that the Cabinet of Ministers adopt a policy requiring government officials, including diplomats, to prioritise the national airline when traveling abroad. In the United States, a federal law adopted by Congress requires government-funded travel, including that of government employees, contractors and grant recipients, to use U.S. air carriers whenever available.
He also criticised the decisions made by authorities on granting fifth freedom rights to foreign airlines, particularly in 2024 and those benefiting the Middle Eastern carriers. Dharmadasa argued that these policies cost SriLankan Airlines around US $ 500 million on the Colombo-Male route.
“The previous government granted fifth freedom rights to the UAE and as a result, SriLankan Airlines lost around US $ 500 million,” he said.
Policy consistency was another key concern for Dharmadasa, who emphasised that frequent changes in regulations and leadership have hindered the airline’s ability to execute long-term strategies.
A key part of Dharmadasa’s proposal is transitioning to New Distribution Capability (NDC), a digital framework that allows airlines to sell tickets directly, bypassing traditional third-party booking systems.
“If SriLankan Airlines had fully implemented NDC, we wouldn’t be paying millions in commissions to foreign ticketing platforms,” he said, stressing that modernising sales channels could significantly reduce costs and increase direct revenue.
Dharmadasa also pointed out inefficiencies in the airline’s credit card payment systems, suggesting that a localised payment processing system would help minimise the currency exchange losses. According to him, the government should absorb the legacy debt of SriLankan Airlines, as announced by the new government.
Dharmadasa took over as the CAA Chairman in 2020 during one of the most challenging periods in global and Sri Lankan aviation industry history and provided the leadership to successfully navigate the multiple crises, including repatriation of 138,000 stranded Sri Lankans across the globe at the height of the pandemic.
Dharmadasa is regarded as the most senior aviation professional in Sri Lanka with roots stemming from the national carrier, with extensive over 45 years of experience in the aviation and hospitality sectors. He commenced his aviation career at Air Ceylon as a cabin crew member in 1975. Later, he founded several travel and hospitality ventures in the United States and has been promoting Sri Lanka among potential U.S. tourists across all 50 states.
Comments - 24
Recommended
You May Also Like
Trending
