Board meeting Thursday, new UL directors yet to be appointed
While the next board of directors meeting at SriLankan Airlines is scheduled for Thursday January 25, the current directors are still awaiting the appointment of a new board or board of management, as stated by the Government.
On January 5, Public Enterprises Minister Minister Kabir Hashim said the Government had accepted the resignations of the board of directors led by Ajith Dias (chairman). However by Friday, board members remained in their positions with one member saying they haven’t received letters, as yet, from the Government acknowledging the resignations, which is the due process prior to new appointments.
On Wednesday, Mr. Dias told the Business Times that till somebody is appointed by the government the existing board would continue to function, adding that there were cheques to sign and letters to write which require the management’s presence.
He said he hoped that the new restructuring board would be left to deal with the work without much sensationalising of the goings on in the media.
Mr. Dias said that the restructuring work initiated by Nyras Consultants had already commenced at SriLankan Airlines. However, he noted that it was not possible to detail all the areas that are being worked out at present.
The Public Private Partnership unit and the management are consultants and were meeting daily and they would take into consideration a look at the routes and “right-sizing” of the company among a host of other matters.
He said that right-sizing would mean there would be a cut down on staff that could impact all levels of the company.
In the meantime, the national carrier stated in a media release on Friday that it had recorded its highest ever monthly revenue in Company history in December 2017.
The air-transport operation of the Company recorded a stand-alone revenue of US$ 100.1 million – the first instance in the 38-year history of the airline where monthly operating revenue reached this landmark figure, the release said.
The airline attributed the increase in revenue to its expanded network and continuous improvement in revenue management processes. A total of 566,627 passengers were carried during the month, a 27 per cent increase over December 2016 and recorded a Passenger Load Factor of 85.9 per cent – above that of most major airlines in the world. Cargo carriage too witnessed a significant growth, rising 23 per cent year-over-year to 12,016 metric tonnes.
The airline’s newly launched route to Melbourne, Australia, had achieved a Passenger Load Factor of 92.4 per cent making Melbourne the first long-haul route launch of the airline in recent years to reach profitability in such a short period, the airline said.
The company recorded a net positive result for the month even after interest costs, with an un-audited net profit of $3 million. However, the management stresses that this positive result is only a beginning, especially considering the fact that oil prices have increased by over 25 per cent compared to December 2016. The fuel cost which accounted for 25 per cent of the total operating expenditure a year ago, has risen to 31 per cent whilst the ticket price (yield) has barely increased due to fierce competition and persistent over capacity, ills which are affecting most airlines.
The airline’s strategy of re-fleeting with fuel-efficient “single aisle” aircraft paid off, with its five-strong fleet of Airbus A320neo family aircraft helping to combat rising fuel costs. Two days of un-forecast fog in the Gulf were the only blight on the month, leading to several delays due to aircraft diversions, the release stated.