SriLankan Airlines is poised to expand its presence in the Middle East, with plans to add new routes and increase flight frequencies after acquiring more aircraft this year, according to Richard Nuttall, CEO of SriLankan Airlines.
Fleet Expansion and Modernization
Nuttall highlighted that fleet modernization is crucial for the airline’s turnaround and catering to the growing passenger demand in the region. The airline, which currently operates 21 aircraft, plans to increase its fleet to 22 in July and add three more aircraft within the next three months, bringing the total to 25 by the end of the year. “We aim to boost SriLankan Airlines’ fleet with more leased aircraft that will help increase frequency on existing routes as well as add two or three new routes,” Nuttall said during his visit to Dubai.
Strategic Initiatives and Global Reach
Nuttall attended the International Air Transport Association’s 80th annual general meeting and World Air Transport Summit in Dubai. He has a wealth of airline industry experience spanning three decades and five continents, having held multiple chief officer and board positions in aviation companies across the globe. His previous roles include positions at Saudia, Bahrain Air, Royal Jordanian, Kenyan Airways, and Philippine Airlines.
Despite a challenging environment, Nuttall expressed confidence in the airline’s outlook, citing strategic initiatives to improve operations, enhance customer experience, and expand global reach. “We’ve been focusing on strategic initiatives to improve the airline’s operations, enhance customer experience, and expand its global reach with the addition of new aircraft this year,” he said.
Privatization and Financial Performance
Regarding the airline’s privatization, Nuttall mentioned it is part of Sri Lanka’s IMF programme, which aims to improve the airline’s balance sheet through debt restructuring. The government is working on a comprehensive strategy to support the airline and find a suitable buyer. “The government has shortlisted three potential investors out of six candidates who submitted their expressions of interest in April,” he said, adding that one consortium involves Qatari and Indian investors keen to buy a majority stake in SriLankan Airlines.
Nuttall also highlighted the airline’s improving financial performance. “We just need $150-$200 million to strengthen the fleet, expand our flight operations, and sustain robust profits in the coming years. We carried about 3.65 million passengers in 2023 and 1.15 million passengers during the first four months of 2024,” he said. The airline recorded a profit of LKR8.72 billion from April 2023 to March 2024, a significant turnaround from the LKR73.62 billion loss in the corresponding period the previous year.
Codeshare Agreements and Middle East Operations
SriLankan Airlines has codeshare agreements with several major airlines in the region, including Etihad Airways, Qatar Airways, Kuwait Airways, Oman Air, and Gulf Air. “We have strong ties with all major airlines in the GCC region. SriLankan currently operates daily flights to Colombo from the Gulf cities of Abu Dhabi, Dubai, Doha, Riyadh, and Kuwait. We also operate five times a week to Colombo from Dammam and three times a week from Jeddah,” Nuttall explained.
Future Prospects and Competition
Addressing the rising competition, Nuttall stated that SriLankan competes with eight foreign airlines on one of its strongest routes (Colombo-Maldives) but remains confident in the quality of its service. “We are confident of increasing our market share from 40 per cent to more than 50 per cent once we operate with our full fleet of 25-27 aircraft. The airline will gain more passengers on its flights to GCC, Indian, and Far East route networks,” he concluded.
With its strategic expansion plans and strong financial recovery, SriLankan Airlines is set to enhance its presence in the Middle East, offering more connectivity and improved services to its passengers.
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