Financial Times

Rush for SriLankan's holiday packages, discounted tickets
Some of the holiday packages with low-priced fares offered by SriLankan Airlines have been sold out and flights are nearly full on certain routes. "The response has been really great," said Chandana de Silva, the airline's Head of Corporate Communications. "Many people have signed on."

Some 1,200 tickets had been sold up till the middle of last week on the special promotional package offered by the national carrier to mark its 25th anniversary. The Maldivian holiday packages offered by the airline at very attractive rates have been full booked while others are still open, de Silva said. Tickets will be available up to September 15.

The airline has also offered holiday packages to India, Malaysia, Thailand and England. The airline's loan package, which was officially launched last week in a tie-up with banks, enables travellers to buy holidays and pay over a period of time. The banks will give credit facilities to customers to buy tickets and they will be responsible for recovering the loans, de Silva said.

The banks involved are Commercial Bank, Hatton National Bank, HSBC, Nations Trust Bank, National Savings Bank, Sampath Bank and Seylan Bank. "Many Sri Lankans do not have that amount of disposable money to spend immediately. So we looked at that need and tied up with banks to allow them to travel," de Silva said.

He acknowledged that there was a "slight danger" that some people might not be able to repay their loans after going on holiday but said that as banks would evaluate the creditworthiness of their customers such risks would be minimised.

De Silva also dismissed concern that some of the packages had been sold in advance, saying that many customers were disappointed because they had been sold out fast or flights were full. "Flights are heavily booked because of our offer of 50 percent discounts. This month we might get an 80-percent seat factor."

De Silva also said SriLankan Airlines, backed by Emirates, which has a 40 percent stake in the national carrier, was considering a proposal to invest in building more hotel rooms in the island to cater to booming demand.

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