Tata Group’s Air India acquisition opens door for collaboration, says Minister de Silva

Nimal Siripala de Silva 

The acquisition of Air India by Tata Group and their order for 250 Boeing 777 aircraft present the national carrier SriLankan Airlines with the opportunities for collaboration, Sri Lanka’s Ports, Shipping and Aviation Minister Nimal Siripala de Silva yesterday said. 

“These collaborations, possibly with regional airlines, offer the potential to secure the future prospects and rights of the 6,000 employees of the SriLankan company, thereby fortifying the industry’s position,” de Silva told a press briefing held at the President’s Media Centre, yesterday.

Indian conglomerate Tata Sons has been touted in Indian media reports at least a couple of times as a possible investor in SriLankan Airlines.
The Sri Lankan government has announced the plans for the restructuring of the debt-ridden airline and de Silva said an international consultant has been appointed to facilitate this.

“The Cabinet has recently granted approval for a comprehensive restructuring plan for SriLankan Airlines. Following the submission of this proposal to the Treasury, constructive discussions have taken place in collaboration with the World Bank. In an effort to ensure transparency in the restructuring process, it was recommended to enlist the assistance of an international consultant,” de Silva said. 
“Consequently, a qualified consultant has been appointed and crucial steps are actively being taken to expedite the restructuring of SriLankan Airlines. If progress aligns with the planned timeline, the anticipated benefits should be realised by February of the forthcoming year,” he added.

Meanwhile, de Silva said SriLankan currently doesn’t own any aircraft and all available aircraft are leased. He said the existing fleet primarily comprises of A320 aircraft, which are unsuitable for long-haul flights.
As a result, he said the airline faces limitations in offering services to destinations such as England, France and Australia.

“… the restructuring of the airline is imperative to address these challenges effectively,” he stressed.
Meanwhile, commenting on the recent flight delays and cancellations, the minister said such operational setbacks have cost the airline of about US $ 6 million.
“While unions have attributed these delays to technical faults in the aircraft, it’s important to emphasise that pilots must possess certification from a qualified aeronautical engineer before they can undertake flight operations. 

Moreover, a noteworthy contrast exists in the monthly flight hours flown by our pilots compared to those from other airlines. The majority of our pilots have averaged only 63 flight hours per month, whereas their counterparts in other airlines often accumulate hundred flight hours. 

In light of this, a plea is made to our aviation professionals to demonstrate unwavering commitment to institutional success, fostering a culture of responsibility and accountability,” he said.
De Silva also said despite the demands by SriLankan pilots for higher salaries, citing comparisons with the salaries offered by global aviation giants, such demands cannot be met at this moment under the current circumstances. 
He said a SriLankan pilot is drawing a salary of Rs.4 million a month.