SriLankan Airlines’ survives its toughest year
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Influences such as the dramatic downturn of visitor arrivals due to the country’s political unrest and the surge in fuel prices threatened the organisation’s efforts in making their operations and services profitable.
Tourist arrivals alarmingly decreased as foreign governments issued travel advisories against visiting Sri Lanka after hostilities in the country’s internal conflict made the country’s security unstable.
The other blow is the consistent rise of jet fuel prices that resulted in the company’s annual fuel bill increased to USD 224.9 million, up from USD 190.5 million in the previous year.
According to D.H.S. Jayawardena, Chairman, SriLankan Airlines their successful financial performance despite adversities, was made possible by the “tireless efforts of the management and staff of SriLankan Airlines and SriLankan Catering to mitigate the impact of adverse factors through innovative and efficient business strategies and stringent control of costs”.
SriLankan focused on its core competencies and used its position as the most frequent foreign carrier into India to provide service to global travellers to the Subcontinent via Colombo.
The National Carrier also committed itself generously as one of the strongest and active supporters of tourism into Sri Lanka and despite being cost conscious, they invested heavily in the country’s promotional campaigns.
It also did not let the adversaries dampen its set plans to expand and launch new services to Goa and Jeddah and double their frequencies to Dubai amongst other activities that contributed to its profit stability.
On the other hand, looming ahead on the horizon is the uncertainty surrounding the management of the airline which is said to be affecting its ability to implement future growth plans as well as casting a cloud over the job security of its staff.
How long the airline can sustain its growth and profitability after Emirates’ ten year management contract ends on 31 March 2008, will surely be anticipated by the industry.
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