SriLankan Airlines is entering a major growth programme as peace holds in its home country, with an expansion of international operations and the launch of its first domestic flights.

The expansion includes the addition of seven aircraft to its fleet of 11. Two leased Airbus A340-300s have already been added, while two more Airbus A320s are due to arrive soon. The expansion also includes the induction of two float-equipped Cessna Caravan amphibious aircraft, as well as a second Antonov An-12 freighter.

SriLankan, which is 43%-owned by Emirates, was badly affected in 2001 after a rebel attack on Colombo airport destroyed four of its aircraft. Business has picked up steadily since early in 2002, however, when a ceasefire agreement was signed between the government and Tamil separatists after more than 20 years of civil war.

"The arrival of these aircraft signifies this airline's confidence in the future, and our faith that our new operating strategy will bring us every success," chief executive Peter Hill says of the expansion. SriLankan is using the additional A340s on routes to Europe and East Asia, while the extra A320s will be used for services within south Asia - both on existing as well as on new routes. Its second An-12F will be used to boost dedicated cargo services within south Asia, as well as allowing SriLankan Cargo to launch services to Bangkok in Thailand.

The Cessna floatplanes will be used to pioneer air taxi services within Sri Lanka, initially from Colombo to Koggala, Kandy, Nuwara Eliya and Dambulla, using inland waterways as landing strips. SriLankan says this will be the first commercial use of amphibious aircraft in the country.

Meanwhile, SriLankan is increasing services to India "consequent to the recent liberalisation of the bilateral air services agreement between India and Sri Lanka". During December it boosted frequencies on its existing Mumbai, Trichy, Bangalore and Chennai services.

The carrier had been seeking greater access to the important Indian market for some time and its move to boost services to the country comes as the New Delhi government is starting to open up its market to more services by foreign airlines.

SriLankan may face competition from Indian private carriers next year, although no firm plans have yet been announced. The Indian government has long barred Air Sahara and Jet Airways from operating international services but recently pledged to allow them to fly limited international services - initially to Sri Lanka.

NICHOLAS IONIDES SINGAPORE

Source: Airline Business