NICHOLAS IONIDES / SINGAPORE
Airline discusses Airbus A340 deal as traffic grows after last year's ceasefire deal between government and rebels
SriLankan Airlines is closing on a deal to take long-term leases on up to six ex-Singapore Airlines (SIA) Airbus A340-300s as part of a major growth plan.
Industry sources say the deal involves A340-300s that Boeing is acquiring from SIA. Boeing agreed in 1999 to buy all 17 of the Singaporean flag carrier's A340-300s - including two not built - in a controversial deal covering the purchase of 10 Boeing 777-200ERs.
Boeing has since had difficulty placing the A340s, although three were leased to Hong Kong's Cathay Pacific Airways and two to Algeria's Khalifa Airways, currently in trouble as a result of financial problems at its parent company's Khalifa Bank unit.
The sources say the deal being negotiated would see Lombard Aviation Capital buy the A340-300s from Boeing and lease them to SriLankan, possibly for up to 10 years. SriLankan would initially agree to lease four and take options to lease two more.
SriLankan chief executive Peter Hill confirms a deal on ex-SIA A340s could involve Lombard, although no proposal has yet been put to the carrier's board.
"Nothing has been signed...I don't think it is likely to be finalised before the end of next month," says Hill.
SriLankan, 43% Emirates-owned, has been recovering steadily since a 2001 rebel attack at Colombo Airport destroyed much of its fleet. The carrier operated 12 Airbus aircraft until the rebel attack on 24 July in which four aircraft were destroyed and two were damaged.
SriLankan has been performing exceptionally well since a ceasefire agreement was signed between the government and Tamil separatists early in 2002, ending more than 20 years of civil war.
Last year it leased an A320 from Orix to replace one that was destroyed and it has now agreed to take another A320 in April from the same lessor for use on services to India. It will join two A320s, four A330s and three A340s already in the fleet.
Source: Flight International
