|
|
|
  |
| Sunday, 20 February 2005 |
 |
|
 |
Business |  |
| News Business Features Editorial
|
SriLankan reform pays dividends by Gamini Warushamana The country is now reaping the fruits of correct decisions it had taken in the past to reform state-owned enterprises, said Deputy Finance Minister Ranjith Siyambalapitiya, referring to the success achieved by the national carrier SriLankan Airlines. The Deputy Minister said that in 1998, the state airline Air Lanka was in a pathetic situation. It had only a few, over 20-year-old obsolete airbuses. Over 50% of the fleet was not in flying condition. AirLanka failed to extend its services to new profitable routes and cater to the increasing demand. The government was not in a position to invest a large sum of money to rectify this. The official airline of the country also needed a modern technology and management system to correct this situation. The decision taken to reform the national carrier was highly criticised by the then opposition. But today it has been proved that the decision to team up with Emirates was correct and today SriLankan Airlines is one of the most competitive airlines in the world. He said that today the fleet comprises A320, A330 and A340 airbuses with modern facilities. Profits are increasing annually. In 1998 the company earned Rs. 2,361.36 million profit, but after the terrorist attack in 2001 the company lost half of its fleet and recorded a loss of Rs. 6507.95 million. Despite the damage the company was able to earn a profit of Rs. 3,272.21 million in 2002. It recorded a profit of Rs. 2,326.38 million in 2003. By 2004 the profit doubled to Rs 4,555.14 million. Siyambalapitiya said that the assets of the company also increased after privatisation. By 1998 the assets of the company were valued at Rs. 9,224.3 million and by the end of 2004 the assets of the company had increased to Rs 1,9856.6 million. He said that this success was the result of improved management of the company after privatisation. In 1998 the revenue per flying km of SriLankan Airlines flights was Rs. 27.60 and by 2003, it increased to Rs.43. During the same period the revenue per passenger Km increased from Rs.2.80 to Rs. 4.30. In 1998 the national carrier carried 994,000 passengers and by 2003 it increased to 1,806,000. Today SriLankan Airlines is capable of competing with any international Airline. It provides the most friendly service to passengers. The airline won three global awards for excellence for inflight entertainment, at the World Airline Entertainment Association's Avion Awards 2004. The most prestigious prize was "Best Overall Inflight Entertainment," for
an airline with a fleet of 20 or less aircraft. SriLankan won this title for
the second year in succession from WAEA, the global airline entertainment
industry's premier organisation. |
|
| News | Business | Features
| Editorial | Security
| Produced by Lake House |
