By Duruthu Edirimuni Chandrasekera
In a bid to beat the rising fuel prices, the national carrier SriLankan Airlines has executed two fuel hedging contracts last month, according to a top official.
"These contracts were for 50,000 oil barrels, which is about 20 percent of our consumption, which we executed through two international banks that are present locally," Manoj Gunawardena, CEO SriLankan Airlines told The Sunday Times FT.
He said the airline can make gains from all its expenditure items such as fuel. "Hedging is one way. This provides stability for the future. As we go, we will look at all sorts of financial instruments, which will ensure predictability," he noted.
Mr. Gunawardena added that the national carrier has undertaken a Fuel Efficiency Gap Analysis (FIGA), which helps save fuel through operating methods, etc. "FIGA has shown us that a mere three percent entry of fuel will come to US$ 15 million. The Fuel Management Committee at the airline will implement recommendations of FIGA and other such measures to minimise the losses on fuel," he added.
On a separate issue, asked about the five vacant positions which currently are manned by acting SriLankan Airlines’ staff, Mr. Gunawardena said that by end June they will be advertised. The advertisements will be for Head of Service Delivery, Head of Commercial, Head of Flight Operations, Head of Corporate Affairs and Head of Engineering. “By June 30 we will be closing the applications and by August 1, we will make these appointments,” he said.