NICHOLAS IONIDES / SINGAPORE
SriLankan Airlines, already suffering from a decline in business over the past year, is working to rebuild its operation after the rebel attack on Colombo airport that destroyed or damaged half its fleet.
The 24 July battle at Colombo's Bandaranaike International Airport took out six of the carrier's 12 Airbus aircraft. Four were damaged beyond repair, one requires major work and one returned to service on 1 September.
SriLankan was forced to reduce its route network radically because of the attack but says it will not seek to replace all lost aircraft for up to a year. "Obviously, in the aftermath of all this, there's a question of how the loads will stand up," says SriLankan chief executive Peter Hill. "I think it's prudent to stick with the aircraft we have for the time being. We're downsizing routes and staff to match six aircraft. I think that's where we'll stay for the next year."
SriLankan, 40%-owned and managed by Emirates, had already offered voluntary retirement to many staff early in July as it sought to downsize its operation. It relaunched the voluntary retirement scheme soon after the rebel attack.
The attack also forced other airlines to suspend services to Colombo after insurance companies slapped huge premiums on flights into the Sri Lankan capital. Hong Kong's Cathay Pacific Airways suspended Colombo services hours after the attack and said it had no immediate plans to resume them because of the "security situation".
Thai Airways International said it would be considering the fate of Colombo services, in part because of rising insurance premiums. Full-fare ticket prices shot up about 10% on most airlines after the attack when insurance companies began imposing surcharges of more than $100,000 per flight in some cases.
SriLankan says it will meanwhile continue working with partner Emirates to rebuild its route network. The carrier will be operating a skeleton service focusing on Europe for the near future while relying on Emirates to carry passengers on other suspended services.
Source: Airline Business
