New Board for SriLankan this week | Sunday Observer

New Board for SriLankan this week

A new board and a chairman for SriLankan Airlines will be appointed this week, to carry out the proposed restructuring plan of the airline, Minister of Public Enterprise Development Kabir Hashim told Sunday Observer Business.

He said the Prime Minister had accepted the resignation of the current board and the Ministry will appoint a new board this week. The new board will work with the official restructuring committee headed by Treasury Secretary and look for a partner for the airline.

“The Prime Minister at a meeting with the restructuring committee last week promised to revive the airline that has incurred major losses due to mismanagement by the former regime,” the Minister said.

SriLankan Airlines suffered a loss of Rs.14.1 billion in 2016 and incurred a total loss of Rs.169 billion over the past nine years.

SriLankan Airlines in 2013 decided to purchase four A350-900 aircraft and to lease three more aircraft of the same model. The orders for the transaction were cancelled by the current government when it came into power and as a result the airline had to pay a fine of around US$ 154 million to the company.

Minister of Megapolis and Western Development, Patali Champika Ranawaka had said that SriLankan Airline’s loss was greater than the Rs.15 billion spent to build the Aruwakkaru sanitary land fill to address the garbage problem in the city.

SriLankan Airlines Chairman Ajith Dias and the five directors offered to resign from their posts through a collective letter recently, to support the restructuring plan of the government.

The ministerial committee appointed to look into the restructuring of the airline held discussions last week with regard to the restructuring plan presented by the international consultant.

SriLankan Airlines is the flag carrier of Sri Lanka and a member of the ‘Oneworld’ alliance. The airline was launched in 1979 as Air Lanka following the termination of operations of the original Sri Lankan flag carrier Air Ceylon.

Following its partial acquisition in 1998 by Emirates, it was re-branded and introduced the current livery. After ending the Emirates partnership, it has continued using its re-branded name and logo.

The airline operates flights to 105 destinations from its main hub at the Bandaranaike International Airport.

SriLankan Airlines joined the Oneworld airline alliance on May 1, 2014.