Jobs at SriLankan Airlines at risk if immediate restructuring measures not implemented: Minister

1 July 2023 12:55 pm - 26 - {{hitsCtrl.values.hits}}

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There is a potential loss of jobs for approximately 6,000 employees at SriLankan Airlines if immediate restructuring measures are not implemented, Ports and Civil Aviation Minister Nimal Siripala de Silva said.

Addressing a media briefing held at the Presidential Media Centre yesterday (30) he said the government cannot sustain the financial losses incurred by SriLankan Airlines and it will be unfair to continue using taxpayers' funds in this manner.

To address the situation, the government has already initiated efforts to engage the support of international financial experts, with the aim of conducting the restructuring process in a transparent manner, as part of their commitment to building a stable country.

“SriLankan Airlines, established as our national carrier many years ago, holds a unique position. While it managed to generate a profit of Rs. 30 million during the period it was under the control of Emirates Airlines, it has struggled to achieve profitability otherwise. The airline is primarily funded by the taxes of ordinary citizens, including those who have never experienced air travel. We take pride in having our own national airline, but we must question whether the cost associated with maintaining it is justified," the minister said.

"Presently, SriLankan Airlines carries a debt of USD 1.2 billion. Various organizations, including local state banks, have had to cover outstanding payments for international bonds and leased planes.

Additionally, we have accumulated unpaid fuel bills as well. Operating an airline under such immense debt is unsustainable. "Due to economic challenges, including foreign exchange difficulties, the government is unable to provide financial support for losses as it has done in the past. This approach is no longer equitable, which has led to the decision to restructure SriLankan Airlines.

The restructuring plan entails the government retaining a 51% share, with the remaining 49% to be offered to another investor.

"The proposal for the restructuring process of SriLankan Airlines was submitted to the Cabinet six months ago. Although some profits are generated through ground operations and the SriLankan Catering Company, they are insufficient to cover the airline's losses.

"Considering the need to sell shares separately and the memorandum presented to the Cabinet, a series of proposals have been forwarded to international financial experts through the Ministry of Finance. We are committed to transparently maximizing the benefits of this process. "The completion of the SriLankan Airlines restructuring is anticipated within the next six months. It will then be transferred to the identified investor under conditions that safeguard the rights of employees. Through this initiative, we aspire to enhance the performance of SriLankan Airlines. Failure to undertake this task promptly puts the jobs of approximately 6,000 employees at risk.

"The airline industry worldwide experienced a severe setback due to the COVID-19 pandemic. Tourists ceased to visit countries, and many nations had to ground their planes. In fact, even Qatar Airways had to lay off 72 pilots.

In contrast, our government ensured that our pilots received half their salaries, even when they were not flying actively. This gesture was driven by a humanitarian approach. "Following the COVID-19 pandemic, our country faced immense challenges, including a decline in tourist arrivals.

However, under the leadership of President Ranil Wickremesinghe, the government successfully navigated these difficulties and revitalized tourism through the efforts of SriLankan Airlines. As a result, tourists gradually began returning to our country," Minister de Silva added.

Comments - 26

Gaston Saturday, 01 July 2023 01:17 PM

Start with getting rid of the political appointees. For example, out of the 50 janitors, the janitors who do not clean the toilets

Ganesh Saturday, 01 July 2023 01:47 PM

Why should we start at the bottom, let’s start with the politically appointed chairman and board

People with small brains have small ideas Saturday, 01 July 2023 02:42 PM

Sri Lankan has many issues such as high debt and lack of planes and pilots. Is over-staffing an issues? Have you considered the facts or saying whatever that comes to your head?

Hard Truth Saturday, 01 July 2023 04:04 PM

These janitors expecting tip from the travelers who use toilet. Such a cheap Sri Lankan mentality. For anything and many things, certain Sri Lankans need things free.

Sivalingam Saturday, 01 July 2023 01:34 PM

Losses should be recovered from the leeches of Diyawannawa who filled unnecessary employees.

Ex- Pilot Saturday, 01 July 2023 01:46 PM

Retain the qualified staff, some of whom have not been appointed to jobs related to their qualifications which if corrected will be able to get the best output from them. Political appointments have been the issue throughout for the airline to incur losses. Take immediate steps to save the 6000 airline staff.

William Saturday, 01 July 2023 01:52 PM

Under Emirates our national airline was very successful he admits. But when locals took over, no doubt politicisation also entered. That's why it is a failure. Very transparent indeed.

demlight Saturday, 01 July 2023 02:02 PM

Sack the overpaid foreign ceo and their management team!!! They must be taking homing 80% of the salary.

Nimal Saturday, 01 July 2023 02:30 PM

This airline has been a heavy burden on the innocent people of Sri Lanka since its inception, incurring massive losses except during the period it was managed by Emirates. The higher management continues to enjoy all the perks while doing virtually nothing to make it break even. Close this altogether.

DJ Saturday, 01 July 2023 02:46 PM

Close Sri Lankan and start a new national airline like Swissair and Alitalia. Whic were far developed countries.

Ram Saturday, 01 July 2023 03:34 PM

We have had politically connected Chairmen in the past who ruined the carrier during their times and mismanagement all the time dwindled our Sri Lankan Airlines beyond repair

sugath Saturday, 01 July 2023 03:47 PM

The profitable joint venture with Emirates Airlines was destroyed by politicians of this country.

Javanika Saturday, 01 July 2023 04:10 PM

All the Ministers in whatever they say do not fail to do one thing i.e. to say something in praise of the President. They are so scared of losing their jobs !

Mohammed intiquab Ghouse Saturday, 01 July 2023 05:20 PM

Who should be answerable for Emirates departing, and the mess Tangalla is very famous for playing out foreigners.

Tissa Fernando Saturday, 01 July 2023 05:43 PM

This guy has been systematically creating the background for significant devaluation of the Sri Lankan Airlines, so a potential investor can buy the assets at throw away prices. On the side he can collect his hefty commission too.

VJ Saturday, 01 July 2023 06:45 PM

Not all countries have a national carrier. If we cannot afford it, we should close it and start again when we are financially able. If it is just for pride, the price we are paying is very high. All underperforming assets have to be liquidated and resources must be redeployed to other areas. The major problem faced by this country is accountability. Bad performers are allowed to continue year after year. The president has to accept command responsibility for all these shortcomings.

Gaston Saturday, 01 July 2023 08:54 PM

There is a staff so much in excess due to political appointments. They are mostly of the lower register. (Janitor was only an example.) The bottom-to-top cleaning up is to kick out the pesky union guys as well. Besides, sorts of K.Hashim, Nishantha Wickremasinghe, and Nidhikumbha Siripala have brought in a lot of unskilled smoke blowers into the organisation. When their appointees are sacked, they come back to the office on the following day with a letter from their master. Unless you are one of them, those are some facts FYI @ PSB Small i

Dilshan Perera Saturday, 01 July 2023 09:36 PM

Get rid of unwanted staff.. especially top management and excess cabin.. Indian domestic market is expected to explode in next few years.. SriLankan provides a better service than any Indian airline.. so can't that idiotic thief Softlogic Pathirana see an opportunity to tap the indian domestic market??

Binura Sunday, 02 July 2023 01:30 AM

This is all part of the game to sell the airlines to TATA, india Government under immense pressure from India to sell it

Jeanne Sunday, 02 July 2023 05:12 AM

I think it's the country's worst kept secret why Sri Lankan Airlines parted ways with Emirates. Yep another politically initiated vindictive and petty move. Much like cutting your nose to spite your face. SL Airlines has amazing Air Stewards and Stewardesses. The majority of them are polite and helpful and are almost embarrassed to serve on an airline that is doing the bare minimum so they meet safety regulations. Form an alliance with a professional airline, ditch the political involvements which usually end in corruption, and start paying our pilots and flying staff the wages they deserve. Like with every profession in this country, the best are leaving because of awful pays and working conditions. Wake up Sri Lankan Airlines or just sell this broken item while you still can.

DOT Sunday, 02 July 2023 05:35 AM

Their fate is written on the wall! They must pull ttheir soaks to see if any hopes!

Pina Sunday, 02 July 2023 08:47 AM

Didn't it run smoothly and profitably. Also deliver profits to SL government by Emirates airline. Who ruined it. Bring those culprits to answer. Do not let them go.

Six thousand staff for 20 planes??! Sunday, 02 July 2023 08:52 AM

This is not a business model but a welfare plan for 6000 clumsy lankans and cheap travel option for the world pubic with my tax money. CLOSE down the loss making company. People are suffering without medicine. No propper education for children. Siripala is dozing off every now and then. Wade sellers and chili powder dealers in the parliament running the bankrupt country. What are you waiting for??

Dinesh Sunday, 02 July 2023 10:39 AM

How many staff per working plane does that come to? And not even safe to fly on.

Take a lesson from GOTA Sunday, 02 July 2023 11:25 AM

Why are you talking so much? You were with MR and you knew the pathetic situation of Airline! You should have done the change immediately when you took over. There is no need to lay the foundation to make the change. We want people who work not the ones who talk. If you can't work go away! Allow some one who can work! Take a lesson from GOTA!

Take a lesson from GOTA Sunday, 02 July 2023 11:25 AM

Why are you talking so much? You were with MR and you knew the pathetic situation of Airline! You should have done the change immediately when you took over. There is no need to lay the foundation to make the change. We want people who work not the ones who talk. If you can't work go away! Allow some one who can work! Take a lesson from GOTA!

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Jobs at SriLankan Airlines at risk if immediate restructuring measures not implemented: Minister

Comments - 26

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