Air Lanka has placed orders for six Airbus A330-200s, after Emirates Airlines agreed to take a 40% stake in the Sri Lankan flag carrier.
The Dubai based airline will manage Air Lanka for 10 years, says the Sri Lankan Public Enterprises Reform Commission (PERC). Emirates has also agreed to maintain a minimum holding of 30% for the whole period.
Deliveries of the 281-seat Rolls-Royce Trent 700-powered A330s will start in October 1999. They will replace Air Lanka's two Airbus A320s and two Lockheed L-1011 TriStar 500s. The airline also plans to refurbish the three Airbus A340-300s which are up to four years old.
The A330 was chosen over the Boeing 777 because it offers performance enhancements and fleet commonality with Air Lanka's existing A340s. The A330s will also have engine commonality with the 16 Trent-powered A330-200s Emirates has on order - and a similar cabin layout - but Air Lanka will maintain its own identity.
Air Lanka now has carried forward a loss of R2.7billion ($43 million), says PERC. Emirates' $70 million investment allowed Air Lanka to conclude its Airbus order without usual government guarantees. PERC says the restructuring of the previously state owned carrier has taken three years to produce a "$550 million re-fleeting programme on very favourable financial terms". These include a 25% discount from Airbus, a guarantee that "Air Lanka will be compensated if any other buyer receives better terms for a similar order", and a guarantee concerning residual values of the A330s.
The General Electric CF6-powered Airbus A330-200 received simultaneous certification from the European Joint Aviation Authorities, Transport Canada and the US Federal Aviation Administration on 31 March after 380h of flight testing. Canada 3000 will operate the new model in April.
Source: Flight International
