SriLankan hoping to reduce excess staff

Srilankan Airlines

The government is considering retrenching the excess staff of SriLankan airlines by measures such as Voluntary Retirement Schemes, a report says.

The airline will appoint a task force for the implementation of a proposal made by the committee appointed to look into the financial situation of the national career. The airline is estimated to have an excess staff of 2,000 and that some 1,000 employees are between the ages of 50 and 55.

By March 31, 2018, the national career had incurred a loss of US$107 million. The committee, in its report submitted to Public Enterprise Development Minister Lakshman Kiriella, said the airline is hopeful of reducing the losses and had recommended that legacy liabilities should be removed from the balance sheet as early as possible. Otherwise, it says the interest payable on loans would add up to the total loss incurred by the airline.

As for fleet rationalization, the report says the airline has started negotiations with AIRBUS for the cancellation of the orders placed for four new 350 NEO-300. The company has agreed to eight NEO 320 aircraft instead of the current order. It will be deliverable after 2023.

The committee has also recommended the curtailment of expenditure by 15 per cent for the next financial year.

(Source: Daily Mirror – By Kelum Bandara)