Dimuthu Tennakoon, as Head of Commercial at Sri Lankan Airlines is already on a hot seat, but with tons of experience- three decades to be precise- in the Aviation Industry, he sits easy.
He didn’t show any uneasiness either when we seated him on the Sunday Observer Explorer HOTSEAT, especially at a time when the Aviation industry has been fired at with a thousand and one questions with every Airline suddenly under the radar and scrutiny by the people in general and the globe trotters in particular, on many fronts especially on safety measures.
Specialising in Airline sales, financial management, revenue management and commercial planning, he served the airline as the Head of Worldwide Sales and Distribution since 2017 and was promoted to the Head of Commercial early this year.
Since joining the Airline in 1992, he has served in multiple disciplines, including finance, revenue planning, network planning, route management and pricing. Furthermore, he has held the posts of Sales Manager Dubai, Canada, Manager Maharashtra and Gujarat, Regional Manager Asia Pacific and Australasia and Regional Manager Middle East.
Following his overseas stints, he worked as General Manager Commercial Operations, leading the departments of Regional Sales; Sales Development; Product Development; Customer Affairs; SriLankan Holidays; Industry Affairs; Customer Relations (including the Airline’s loyalty programme); E-commerce; the Global Call Centre; and Channel Management, demonstrating his solid expertise in Airline commercial operations.
In his Aviation career history he has had a great mix in experience. it’s not only at Sri Lankan he has served but got exposed to other Airlines too. Thus between his tenures at SriLankan Airlines, he worked for Oman Air as the Country Manager for North India, overseeing the operation of Bombay, Delhi, Lucknow and Jaipur.
A graduate of the University of Colombo, Faculty of Law, holding an International Master’s in Business Administration from Buckinghamshire New University, he also serves as the Chairman of Sri Lanka Board of Airline Representatives. Currently, Tennakoon leads the Airline’s worldwide passenger sales and distribution, revenue management & planning and marketing divisions. It was refreshing and a delight to find Dimuthu with his vibrant personality and good humour, eagerly and candidly and unwaveringly respond to our questions on our national Airline, seated this time on our HOTSEAT.
Q. Given the recent tragic incident, with the plane crash in India I’d like to address it first, as it understandably weighs heavily on the airline and its team. Since you’ve stepped into a critical role during such a challenging time, how would you like to approach this topic, and what message would you like to share with SriLankan travellers?
A. “Basically, what I want to emphasize is that it is absolutely essential for us to maintain strict adherence to safety protocols, as the authority on safety lies primarily with the engineering department within any airline. They do not make decisions independently; instead, they must coordinate closely with two key entities: the aircraft manufacturer, whether Airbus or Boeing and, in our case, Airbus specifically and the local regulatory body, which is the Civil Aviation Authority.”
“Safety remains our number one priority, and we will never take shortcuts in this regard. We ensure that all safety-related actions are taken only after thorough communication with both the manufacturer and the regulator.”
“I believe the important point to emphasize is that we work closely with the relevant authorities, the aircraft manufacturers, and the civil aviation authorities in every country where we operate. We adhere to their regulations and guidelines meticulously, following them to the letter. With that commitment in place, I think it’s appropriate to conclude on that note.”
Q. Having worked overseas with SriLankan Airlines and later with Oman Air, when you returned to SriLankan Airlines, what differences or gaps did you notice between the two airlines? Based on your experience, what key improvements or initiatives did you feel were necessary to introduce at SriLankan Airlines to help bridge those gaps?
A.“At that time, there were certainly areas for improvement. We were not utilizing as much new technology as some other airlines, and our percentage of online sales was relatively low. Many other airlines had already embraced direct sales channels and provided strong technology-driven support to their commercial teams. Since then, we have made significant progress and have started implementing advanced technologies, including sophisticated revenue management systems, to better support our operations”.
Q. With the impending new marketing campaign of Sri Lanka Tourism, how does that affect the Airline or does it affect the Airline? And how would you tune in SriLankan Airlines to that campaign?
A. “Yes, this will definitely have an impact on us. To put it in perspective, even before COVID, tourism contributed around $4.2 billion to Sri Lanka’s GDP, and approximately 50% of the tourists arriving in the country were brought in by SriLankan Airlines.”
“That translated into roughly $2 billion in revenue directly linked to our passengers.Looking at the numbers, pre-COVID, Sri Lanka welcomed about 2.3 million tourists, with India being the largest source market at around 450,000 visitors. We operated 125 flights per week to India, making us the primary carrier bringing those travelers in. Similarly, we brought in about 200,000 tourists from China, operating 15 flights per week, making us the largest operator on that route.”
“The UK was another key market where SriLankan Airlines was the only direct carrier. Clearly, our network has a direct and significant impact on tourist arrivals.That’s why I believe the upcoming tourism campaign will also positively influence SriLankan Airlines’ operations.”
Q. Sri Lanka Tourism has delayed the national branding and global campaign, does this delay have an impact on you?
“To answer your question directly, launching the campaign immediately after COVID would have been ideal. Nevertheless, SriLankan Airlines has been proactive throughout this period. We organized multiple campaigns to promote Sri Lanka as a safe and welcoming destination. Now, we believe the timing is right to strengthen this collaboration and maximize its impact.”
Q. What is your contribution to the concept of all-year-round tourism that the SLTDA is planning to attract?
“Beyond my role at SriLankan Airlines, I also serve as the chairman of the airline association. Together, all airlines bring in about 95% of tourists to Sri Lanka, with cruise liners accounting for 5% or less. Since Covid, airlines operating into Sri Lanka have not fully returned to their previous levels.
Currently, we operate around 90 flights per week from India, covering nine destinations. Indian tourists remain our largest group, but at SriLankan Airlines, we are also actively targeting other markets, adjusting for seasonality to ensure a steady flow of tourism throughout the year.”
Q. What is you primary focus when it comes to marketing?
A. Our primary focus is to promote Sri Lanka as a premier destination, alongside running various other targeted campaigns. For example, from Europe, we successfully attracted 200 to 300 French participants for an event we hosted called the Ride Sri Lanka Cycling Campaign, which took place over several days across the country. These campaigns have been very effective, as participants leave with positive experiences and share encouraging stories about Sri Lanka.
Q. Has SriLankan Airlines introduced any new or innovative concepts recently? Are there any fresh marketing strategies or initiatives that you’ve developed to enhance customer experience or expand your reach?
A. “Essentially, we’re actively promoting Sri Lanka as a destination alongside SriLankan Airlines. We have ongoing international campaigns, including the Ramayana campaign launched from India, which is a fresh initiative. While India remains a key market, we are also seeing strong demand from Africa, the UK, and the US. We’re focusing on these opportunities with targeted marketing efforts to attract more visitors to Sri Lanka.”
Q. How are we doing on the targets so far?
A. “April was good. May month was a little slow. However, June, July, and August are peak periods.We have a lot of good numbers.”
Q. What more can you say about the network strategy to target new markets?
A. “When we consider starting operations to a new market, we conduct a comprehensive analysis of its potential. This involves studying all relevant market segments and doing extensive research before making any decisions. We use a combination of our internal data and external market intelligence tools, such as DDS, which is widely used across the industry. Additionally, we consult forecasts and outlook reports from major organizations like Airbus, Boeing, and IATA that project trends over the next 5 to 10 years. By combining these insights, we identify promising markets and evaluate the revenue demand. It’s crucial for us to ensure there is a balanced mix of passenger segments—leisure travelers, the Sri Lankan diaspora, students, corporate business, and feeder traffic.“
Q. Let us say that this campaign works and then we have this influx. Are we ready?
A. “From an airline perspective, we are ready and eager to increase capacity whenever there is sufficient demand. It’s important for us to carefully identify seasonal trends and strategically deploy our aircraft during peak periods to maximize revenue and passenger numbers.”
Q. Are you currently prepared to meet the aircraft capacity requirements?
“As you know, we recently received our first wide-body aircraft in seven years. However, to fully meet our operational needs, we require additional aircraft. We are currently in discussions about acquiring two more, and if these are successful, we expect to have them within this financial year. “
Q. Our strongest inbound travellers are from India, are the flights sufficient to bring them in ?
A.“Currently, we operate about 90 flights a week across nine destinations. While this is a solid foundation, it’s not enough, and we aim to increase our capacity. Pre-Covid, we operated around 125 flights weekly. With increased competition, particularly from Indian carriers operating into Sri Lanka, we have aligned our product to better cater to leisure travelers from India.. We offer a variety of packages for travel within Sri Lanka and beyond. “
Q. What are the other adverse situations SriLankan is facing?
A. ”The primary challenge we face is in fact the shortage of aircraft. Until recently, it has been extremely difficult to acquire new aircraft. For any airline placing an order for brand-new aircraft today, the waiting period is typically five to six years.
Q. Why? So, this wasn’t foreseen earlier?
A. ”The post-Covid surge in demand took everyone by surprise. Airlines and leasing companies simply did not anticipate such a rapid rebound in air travel.”
Q. Isn’t a six years wait a bit of a long time in such a dynamic environment?
A. “Several airlines, having significantly reduced their capacity during the pandemic, found themselves ill-prepared to meet this sudden boom. They simply did not have enough aircraft in service. Now, acquiring new aircraft or even leasing them is not a straightforward process. It’s a highly complex and lengthy endeavor that involves coordination across multiple stakeholders: manufacturers, leasing companies, regulators, and more.
That’s why expecting the delivery of a brand-new aircraft within a short time frame, say, six years is often unrealistic. In fact, securing a brand-new aircraft in the current market environment would be nothing short of a miracle.
Of course, aircraft availability is just one challenge. The other significant factor is competition. As more players enter or expand within the market, the dynamics become increasingly demanding. So, for us, it’s about making smart, timely decisions balancing the reality of supply with the pressures of a highly competitive industry.”
Q. From where is the competition you are referring to?
A. “Prior to the Covid-19 pandemic, we held a dominant position at Colombo Airport, operating approximately 55 flights per day and commanding a 60% seat share, while other airlines accounted for the remaining 40%. Today, that dynamic has reversed and our share has declined to around 38%, while other carriers now account for 62% of the seat capacity. This shift is largely due to a significant increase in capacity by foreign airlines, particularly from India, the Middle East, and the Far East, with some Middle Eastern carriers now operating up to five or six flights daily into Sri Lanka.”
Q. We are desperately in need of more domestic flights. Sri Lankan Airlines was operating a domestic airline, what happened?
A. “Currently, there is one domestic aviation company operating in Sri Lanka. We initially started Sri Lankan Air Taxi, but after Cinnamon Air entered the market, we discontinued our own domestic operations. Although there was one aircraft branded with the SriLankan Airlines logo and a few docks that belonged to us, at present, we are not actively involved in domestic air transportation.”
Q. Why not?
A. “The reason is that domestic operations in Sri Lanka require different types of aircraft for viability. Currently, they are using amphibian/seaplane aircraft, which we do not have. We previously had two such aircraft, but those were taken over by the current operator. Even for routes like Jaffna, we lack suitable aircraft.”
Q. Do you not find that lacking when it comes to selling a trip to Jaffna?
A. Yes, it is. We have to combine it with Cinnamon Air as we don’t have any other airline but, we do have a lot of practical bottlenecks to promote this option.
Q. Other national airlines have connecting flights domestically, should we not take a leaf off them?
A. “India is a great example, given its vast size and extensive domestic flight network. For us, traveling from here to Jaffna takes at least seven hours by road, which makes it less appealing for leisure travellers unless they plan to stay for two to three weeks. This is definitely a challenge. At one point, we explored operating flights to Jaffna by acquiring a suitable aircraft. Currently, a feasibility study is underway to introduce ATR aircraft for this route. “
Q. How expensive will the fares be?
A. “The pricing also needs to be very competitive. You can’t expect passengers to pay $150. flying to Jaffna, because, when travelling by road takes 6 to 7 hours and costs less perhaps around 10,000 rupees for petrol and an additional Rs.20,000 for miscellaneous expenses. The cost difference is a big factor for travellers. What I’m emphasizing is that the airfare must be affordable and competitive.
Q. How do you deal with the complaints?
A. “The first step in our process is to acknowledge the complaint promptly. Once a complaint is received, we initiate an internal investigation involving the relevant departments to identify the root cause of the issue. Based on our findings, we then proceed with appropriate compensation or corrective action. According to industry standards, complaints should be acknowledged within 48 hours and responded to within 8 days.
Q. What is the system you have in managing complaints? has it been effective?
A. “We typically have a system in place to manage standard operations efficiently. However, last year was not a normal operational year. Due to several extraordinary circumstances, we experienced significant delays that made it difficult to maintain our usual service levels. It was an exceptional period that cannot be compared to regular operational challenges.”
Q. Are we going to have a major issue due to the situation in Iran?
A. Right now, I don’t think so. We can’t afford another issue, but we can see now that the fuel prices are also going up.
Q. How about the situation concerning overflying Iranian Airspace to Europe?
A. Previously, we used to overfly Iran, but due to current circumstances, we are now taking alternative flight paths. These new routes are longer and less direct, which naturally leads to increased operational costs. On top of that, rising fuel prices have added further pressure. We are monitoring it closely.
Q. Do you have a tagline ?
A. Our long-standing tagline, “You Are Our World,” has been in place for decades. While it has served us well, it may be time to revisit and refresh our brand identity with a new tagline that reflects the present and future of SriLankan Airlines.
Q. Can you tell us about Codesharing?
A. We currently have 18 codeshare agreements and over 75 interline partnerships with other airlines, which are crucial to extending our global reach. While our own fleet operates to just 34 destinations, there are nearly 9,000 commercial airports worldwide highlighting the vast potential beyond our physical network. These alliances enable us to offer fare availability and connectivity to passengers from virtually anywhere in the world through our partner airlines.
Q. How have we fared?
A. Our offline sales, which primarily come through interline and codeshare agreements, contribute close to 10% of our total revenue, a significant figure given the scale of our operations. To strengthen this further, we’re actively engaged in discussions with several major carriers, including Korean Air, Emirates, and FlyDubai.
Q. An industry expert in our Hotseat last Sunday Nilmin Nanayakkara says we need to have tie-ups with other airlines where SriLankan Airlines do not fly to. So, does that mean destination-wise, we are short on reaching certain important areas?
A. Interestingly, while Russian tourists currently rank among the top three sources of arrivals to Sri Lanka, we do not operate flights to Russia at the moment. We did in the past, but due to current constraints, we’ve had to suspend operations. The primary reason is that our fleet consists of leased aircraft, and many of the leasing companies primarily based in the U.S. and Europe have imposed restrictions on operating to Russia due to international sanctions.
Q. What would you say are the key strengths that SriLankan Airlines currently holds?
A. Beyond our strategic efforts to expand through codesharing, the true heartbeat of SriLankan Airlines is our people, the dedicated team that works tirelessly behind the scenes, especially our engineering and operational staff. Their unwavering commitment, attention to every detail, and deep sense of responsibility are what make everything we achieve possible. Our cabin crew, made up entirely of Sri Lankans, brings an authenticity and hospitality that cannot be taught or replicated. It’s not just a job for them, it’s a passion, a calling rooted in kindness and a natural friendliness that touches every passenger. This spirit is the soul of our airline and the foundation of our success.
Q. You recently advertised for cabin crew positions. How is your HR team managing the recruitment and sourcing of talent overall?
A. The hospitality training we provide is making a significant difference. While it’s true that there is a general shortage of fully trained professionals in the industry, we are fortunate to have the Sri Lankan Aviation College, which offers comprehensive training not only for our own team but also for others in the sector.
Q. Do we have a shortage in training institutes for this?
A. There are several training institutes available in Sri Lanka, including the Sri Lankan Aviation College, as well as various private entities offering aviation-related courses. The landscape today is quite different from 30 or 40 years ago, with air travel becoming more accessible and affordable, which may influence the appeal of the industry for some individuals.
Q. Do you think the training institutes are facing challenges with maintaining standards, or is there a broader shift happening in the talent culture within the industry?
A. It’s hard to say whether it’s a matter of training standards or simply that aviation may not be the preferred career path for some individuals. The industry is competing with many other opportunities, especially in the post-Covid environment.
Q. What is SriLankan Airlines’ vision regarding its financial performance and contribution to the country?
A. We are fully committed to ensuring that we are not a burden on the country. Our objective is to operate as a successful, profitable, and sustainable commercial airline. Despite facing both internal and external challenges, we remain steadfast on this path.
Pix by Shan Rambukwella
