Information release in pages of the Nyras aviation consultant’s report last Tuesday (February 12th) by SriLankan Airlines to the Airline Pilots Guild before the Right to Information Commission (RTIC) show that British aviation consultant Nyras, hired by the Government at significant expense, had officially assessed the forecast profitability of the national carrier in 2016 as ‘weak’, pointing out that the ‘challenges facing the airline…’ are ‘…exacerbated by superfluous widebody aircraft orders and related engine contracts.’
According to information by insider sources in the aviation industry, the information released on a directive of the RTI Commission show that Nyras had advised a comprehensive ‘turn-around’ strategy, including recommending that Ceylon Petroleum Corporation charges for fuel for SriLankan Airlines should be the same as those charged in the region’s other airports. SriLankan had been forced to pay above market rates for CPC fuel.
The information release follows from an appeal filed to the Commission last year when SriLankan Airlines, after first refusing to release to the pilots, obeyed an order of the Commission to release details of salaries of its CEO and top executives. Also released were 2 wet lease agreements with PIA and termination agreements with AerCap along with Minutes of Board Meetings of SriLankan (including at then Speaker Chamal Rajapaksa’s residence) where the decision to purchase eight Airbus aircraft had been made. The entire Minutes released under RTI related to purchase of 4 A350 aircraft, lease of three A350 aircraft, cancellation of lease of 1 A350 aircraft and termination of lease of3 A350 aircraft with major losses to the State during both the Rajapaksas and the current Government.
The RTI Commission also ordered the release of reports of aviation consultants Nyras, Seabury and Seaworks on the restructuring of the bankrupt national carrier. While the reports of aviation consultants Seabury and Skyworks had been released with a few deletions, SriLankan was resisting the release of the highly awaited Nyras report citing commercial secrets. The appeal hearing is continuing with information being released in stages.
Sources in the pilots trade union meanwhile laughed at the recent media publicity over JVP MP Sunil Handuneththi’s statement in Parliament that a Board meeting had been held at the former Speaker’s residence leading to Mr Chamal Rajapaksa threatening to resign if that allegation was proved but then backtracking. It was pointed out that this information had already been publicly released last year through RTI but that neither the JVP or the media had taken the matter up. ‘All political dramas…’ said one trade unionist in the airline industry, ‘the pathetic state of the media is even worse, was the media clueless about the RTI information release last year?” he asked.
Presently another Government committee has been tasked with restructuring SriLankan Airlines headed by UNP MP Eran Wickramaratne but the public response to this has been cynical. Many recommendations in the Nyras report for ‘turning around’ the national carrier had been ignored thereafter by the Government. In 2017/18, SriLankan posted a $ 105 million loss and as at end year, cited Rs. 170 billion as accumulated losses. The Presidential Commission of Inquiry into Sri Lankan Airlines had also revealed shocking details of how politicians and their favorites had run the national carrier into the ground.
Steve / February 19, 2019
“In 2017/18, SriLankan posted a $ 105 million loss and as at end year, cited Rs. 170 billion as accumulated losses. The Presidential Commission of Inquiry into Sri Lankan Airlines had also revealed shocking details of how politicians and their favorites had run the national carrier into the ground.”
Tax payers have to bear these massive losses. If the Politicians have been identified then they should pay back the airline for the frauds and mismanagement. However, that will never happen, which ever party is in power.
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Dinuk / February 19, 2019
Eran whose salary is paid by MCC wanted to sell Sri Lankan to a dodgy American Hedge Fund – Texas Pacific Group. (TPG) because Washington wants access to and to control Lanka’s aviation and shipping infrastructure –to purse its Cold War with China in the India Ocean with navel and air bases in Lanka.
Eran continued the Mahinda Jarapassa tradition of looting Sri Lankan and asset stripping it in order to pass it on to Bondscam Ranil’s foreign Backers and funders.
Trumpland Helicopter operations and mobile landing pads in Lankan airspace are already a done deal.
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Kapila / February 20, 2019
Now Japan, Trampland’s Asia Proxy, is its launching “Nano satellites” from Sri Lanka! while fronting youth from the Arthur C Clark Institute as cover for Japan’s CHEAP and Free incursion into Lanka’s airspace and national security to advance Trumpalnd’s Indian Ocean Cold War and security project against China in Indian Ocean.
Japan has de-developed Sri Lanka’s transport and Fisheries sectors for decades, promising to build a light public rail system while flooding Lanka with Toyota and Honda SUVs. and should be asked to pay for using Sri Lankan airspace and do capacity building of marine engineering at University of Moratuwa
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Siri / February 19, 2019
Only way out of these miseries is for the state to take over the accumulated liabilities, else this would take the country deeper and deeper into the bottomless shit holes, and sell it off to local consortium for USD one, in order to give a break to the poor public who are holding the tub for it to stay afloat. It’s massively bloated with excessive over heads, new out fit should trim it to acceptable levels, in order to turn it around, make profit and become a tax payer. If it run and managed professionally on sound and accepted business principles and practices, if could bring in huge benefits to the country on many fronts. Vietnam’s airlines are making huge contributions to it’s economy, and it’s on the verge of starting the fifth airline, and already all it’s existing airlines have placed massive orders for new aircrafts. We are in a dynamic region, and airline travel in this region is booming at the rate of double digits. It’s well and clear that the politicians don’t have the will to let it go for they still want it be their taxi company for their jolly rides, else why they are shaming for years, and not letting it go off to put a full stop for this hermorrageing of people’s wealth.
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nimal fernando / February 20, 2019
You can’t depend on Sirisena with his silly hangman crap …….. he is just fishing for a second term. He is not going to do anything …….. if he wanted he had all the time; he is more of an hindrance to nail the corrupt than an anticorruption stalwart.
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But the biggest culprit here is Ranil …….. he is protecting all the crooks.
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6 months after coming to power Ranil went to Indonesia and away from the Lankan public gave an interview to an Indonesian TV channel ……… and there he was already making excuses not to prosecute any swindler ……… I wrote then here in the CT forum …….. don’t wait 5 years make up your minds now no one is going to be netted.
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Ranil is the slimiest conniving Machiavellian AH standing in the way of the country’s …………. but still he is the best out of the lot ………. because he has some inherited wealth …….. if not he would have his snout in the trough with the rest of them; it’s not morals/ethics or daily Buddhist-acting-classes that keeps him honest ……….
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mike / February 20, 2019
Nimal Fernando – Ranilpaksha hardly reads our comments. Maybe if one takes millions of copies of your versatile comment and start littering Temple Trees, this AH might open his eyes! Vasudeva was correct in calling this bugger a “puk….”.
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K.Anaga / February 19, 2019
The government may advance any amount of money to’ Fly A Kite’ and get nothing in return, but when it come to a question of the estate labour Not more than Rs. 50/= could be advanced, but get a return far above the advance.
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Sinhala_Man / February 19, 2019
Very true, K.Anaga.
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I think that we must demand action on Sri Lankan Airlines, the SLTB, and such like institutions.
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Actually, I’m quite happy to travel in “CTB” buses; but there really must be accountability.
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Sinhala_Man / February 19, 2019
Two quotes from the article:
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What this first quote means is that this airline, in which I “patriotically” flew twice last year, has employed guys who don’t know how to purchase even kerosene oil at the cheapest rate. I have no complaints about the service I received.
“SriLankan had been forced to pay above market rates for CPC fuel.”
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And what this next quote means that even with a government in office that I voted for, and with a President whom also I voted for, it is some other guys who are calling the shots.
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“revealed shocking details of how politicians and their favorites had run the national carrier into the ground.”
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What bloody “national carrier”? I’d like to see it sold off, so that these losses are borne by somebody else. As it is, I, and others like me, and also our progeny for many generations to come, have to foot the bill.
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I’m sure that some guy is going to smugly say that “tax-payers like me” have to foot the bill. I’ve paid almost no direct income tax in my life. However, I keep paying lots of indirect taxes – and my descendants also will be doing so for a century at least. We should be in control, but we’re not. We’ve all been impoverished by running all these ventures as “state institutions”.
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Why not put that famous Pakistani noose (did somebody earn commissions for that as well?) around the necks of whatever knaves are running this airline?.
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UKCitizen / February 19, 2019
A lot of people still do not understand the true state of SriLankan Airlines.
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Here you go:-
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New aircraft have been leased on 12 year leases at above market lease rates. These lease contracts have no termination clause. So SriLankan has to pay.
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There are still 4 A350 on order from airbus. These appear to have been bought at full list price instead of the normal 40-50% discount. They have been trying to cancel this order for the last 3+ years without success. The only logical conclusion is that once again there is no termination clause. U$800 Million still needs to be paid to airbus.
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Both of the above items represent several Billion USD in forward liabilities – this is why there are no buyers and there never will be.
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The high lease rates make it impossible to make money operating the present fleet. The high losses (out of all proportion to the size of the Airline) support this.
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Conclusion:- There is no way out of this mess. The best option is the shutdown of the Airline. Sadly SriLankan taxpayers will be on the hook for several Billion USD no matter what happens. Keeping the Airline running will only make things worse.
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It’s not all bad though – some people have pocketed over U$100 Million on all the Corrupt deals at SriLankan. This is what needs to be investigated.
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Sinhala_Man / February 19, 2019
Thanks, UKCitizen, (of obviously Sri Lankan origin), for giving us that succinct summary of how things stand.
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You say that for the four A 350 planes on order we have “paid the full price” although a 40% discount would have been ours just for the asking. It is obvious that at least 30% of that would have been pocketed by dishonest Sri Lankan citizens. The Pakistani noose must await them.
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The only things to be said for the Airline are a good safety record, acceptable passenger service (subisdised by us all), and good choice of aircraft. Can we agree on that, or have blunders been made in those areas as well?
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UKCitizen / February 20, 2019
@Sinhala_Man
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The Airline has been very lucky not to have had an accident.
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A lot of serious incidents have been covered up by the CAA.
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Mallaiyuran / February 20, 2019
UKCitizen,
So you say if Hangbangtota is only a White Elephant, Sri Lankan Airline is White Jumbo?
What about if we give the SRWD Airport (CMB) for 99 years lease for Airbus Consortium? Will that make them feel satisfied?
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K.Pillai / February 19, 2019
We, layLankans, have no other option but accept the culture of corruption/nepotism/impunity.
Do the PCoI leaks on SriLankan Airlines cause outrage and dismay?
The Right to Information Commission of SL release of other relevant reports will not and cannot make much difference. We are ruled by Colombo Elites without political frontiers and are resigned to “What the Elites want Elites get”
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Kugan / February 19, 2019
This institution is there to purely comfort for the elites while poor women has to leave children behind and go all the way to middle east in order to feed the family
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Eagle Eye / February 20, 2019
Kugan,
Worse thing is these ladies who go to Middle East work hard and earn foreign exchange. The ‘Awajathaka Para BPs’ in the management waste and pocket out that money. These ladies should go to Katharagama and pray to ‘Katharagama Deyyo’ to punish these ‘Awajathaka Para BPs’.
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Hand over Sri Lankan Airlines to Dudly Sirisena. He knows how to make it profitable.
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Douglas / February 19, 2019
At present a “Presidential Commission” on SriLankan Air is at sessions. Do the PEOPLE know what have been “Unearthed” to date? Recently, COPE report was tabled and a “Brief” discussion followed. That revelation about the “Board Meeting” held at ex Speakers residence, came as a result of MP Ranjabn Ramanayke mentioning it, where the COPE Chairman provided the information sought. True this “Meeting” affair was in the COPE Report. Besides that “confrontation” reported, no other “REPORTING” has been done by both the print and electronic media. The Media that publishes, findings of the Presidential Commission is “Island” and its sister paper “Divayena” (a Sinhala edition).. These “Findings” so far EXCEED the revelations of the “Bond Scam” and the losses, waste and mismanagement by successive “Boards” and their “Cronies” are mounting on a daily basis. The question is: Do the PEOPLE know what is going on and are they INTERESTED to FIND OUT what has happened and who and who are responsible? NO. The “Lotus Eaters” are now “Busy” in “Bringing Back” the same set of ROUGES who were responsible and accountable for the collapse of this National Venture. The “Media” too BUSY with that “THIRST” and make mockery of every thing. Nothing will come out of these FINDINGS>.
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Tamil from the north / February 20, 2019
It is sad that the airline crew does an amazing job and give people the best service one could hope for and assholes in the management and bastard politicians interfere and rob the airline and ruin it for all. I flew Sri Lankan few years ago and the crew were superb. Beautiful stewardesses with a huge smile and courteous stewards made that journey a flight to remember rest of my life. Beautiful experience and makes me so sad the a&holes on the ground are ruining it all.
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Banda / February 20, 2019
This airline had super aircrew in terms of pilots and cabin crew who did yeoman service over the years but the continuous politicization saw many riffraffs creeping into it over the last 15 years or more. Their safety record is still very good when compared to neighboring countries.
There’s been a spate of resignations by Pilots, including senior ones recently. Some are leaving due instability while others were involved in racketeering and trying to avoid being prosecuted. Some others are leaving just to collect their EPF/ETF !!
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Outsider / February 20, 2019
The only way for the Sri Lankan Airline to survive and at least break even is if it is transformed into a regional airline flying to Bangladesh, India, Malaysia, Singapore, China, India and the Middle East. They already have code share arrangement with several other airlines which could take passengers to other destinations. If ever there was one single disaster that defined the MR government which had some successes in other areas, it is how they ran Sri Lankan by giving it to a relative who had no clue about managing an airline or any enterprise with a capital probably of more than Rs 1000/=!
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UKCitizen / February 20, 2019
Just to add to my previous post:-
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The reason that the aircraft deals have no termination clause is to increase the value of these deals. It’s not incompetence – this was done deliberately!
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Since Commissions are paid as a % of the value of the deal this increases the amount paid as Commission.
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This is what these deals are really all about. Nothing to do with benefiting the Airline or the country – just putting money into the pockets of Corrupt Politicians, their family members and their cronies.
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As far as I can tell there has been no investigation into who received these Commission and how much was paid (5% would be a Commission of 170 Million USD).
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Even the most basic thing – looking to see who signed these contracts on behalf of the Airline – has not been done. The COI continues to turn up more and more Corruption – yet not a single person has been charged.
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Suren / February 20, 2019
UKCitizen are you pulling these allegations from your ass or do you have any evidence…even a small piece of evidence….if not just shut the f up without talking cock and bull.
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UKCitizen / February 21, 2019
@Suren
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These are not allegations – read the Weliamuna Commission Report.
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Don’t be naive – we all know how “Business” is done in Sri Lanka.
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The aircraft orders at SriLankan are just a large scale MiG deal – or do you deny that happened?
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These deals are all the same – port/highway/airport/powerplant/convention center/cricket ground/Airline- a few people make a lot of money at the expense of the entire country!
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chiv / February 20, 2019
Another commission and another report from the country like no other. Just an eye wash at the expense of tax payers money. Bull Shit. The report will end up in garbage .After elections there will be another commission with a different name and different people. In Lanka commissions are a way to provide employment to the retired. Jeyawewa.
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PARAMANATHAN K / February 20, 2019
So what is going to be the final verdict? Who will bell the cat to sell the airlines or to close it down for good? or appointing of another committee to continue to operate the airline. It needs more than 40 years to realize the fact that Sri Lanka government can’t run an airline profitably (from JRJ to Sirisena). Bureaucrats and corrupted politicians ruined this business which is a gold mine. Who is going to pay for the huge losses incurred in the past?
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Mano / February 20, 2019
UK citizen!
I express my sincere thanks for all the most valuable informations in your Comments. The frauds amounting to billions of USD, I see as the tip of the polar ice glacier and only an Honest Dictator can put an end to it. All the criminals should benetted in and publicly executed without mercy and without a Court Hearing.
But such a miracle can never happen in Sri Lanka with rogues in white and yellow dress are deciding the fate of all Sri lankans. This Mafia has already let the world wolves devouring greedily the entire land , people and resources. The country is going down an unfathomable abyss and none can stop it.
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Sinhala_Man / February 21, 2019
Mano,
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Yours is a decent enough comment – but who is the honest dictator?
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I’d like to see a swell of support for Nagananda Kodituwakku. I know that when he has only one (boring?) theme – stopping corruption – you may think that an inadequate plank.
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But this is what we need.
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chiv / February 20, 2019
In a GDP of $100 billion the srilankan airline debt alone is more than $ one billion. This was not good enough to our economic doctorate MR , who then decided to add Mihin and an empty airport. Jeyawewa.
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Sheriff / February 20, 2019
National Airline has to seek white man’s advice for simple modalities paying millions. When our own people try to put some sense it’s seen as black man should be “seen and not heard”. I agree with UK citizen, with a black bum. (Mind the pun). Even if the airline configure the seats 50 % business class and rest economy you will not recover the losses. Losses made by the corrupt senior management, Chairmans ,CEOs long gone laughing all the way to Australia. Appointments are given to friends and family associates, purely to pilfer and swindle the Airline. So disappointed with that man of God Eran who has to so conveniently pass the losses on to employees. Have the damn stomach like a true Royalist to campaign for rerun of that stolen money. Why didn’t you mention that in your futile eyewash restructuring plan to “hitan the man”. In 16 months this airline can be changed to a Proffessional international airline. Since you all have different agendas, this airline is going nose down. It’s now or never. Employees also are losing hope and vision for tomorrow with all this fruitless commissions and inquiries, wasting productive time. Our enemy is within and no one will bet a dollar till you do a real change. There are people who could change the hand, only if you ask.
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Ghost / February 24, 2019
Sheriff You the man who was promoting the current CEO and the CTO. Bum sucking them, hope you are happy dumbo? You should be jail with the current Chief officers for fraud. We know what you so lets wait for the elections.
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Kugan / February 20, 2019
K.pillai
Before it was Ellie was rulers but now the trend is changing into maffias.and GMOA is the frontier politics along with cleargies.and the minorities are pushed a side.
Now mandarin is emerging as another language.
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justice / February 20, 2019
Do we need a national airline which makes the citizens poorer each year?
Sell/transfer this white elephant.
Only a few have benefitted, and massive corruption has occurred.
The rot commenced when MR fired the Emirates management only because he and lackeys could not get a flight back from UK, quickly enough.
Other airlines which fly via Sri Lanka will provide enough flights.
For special occasions, hire charter flights from other airlines.
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Suranga Gunasekera / February 21, 2019
In 2017/18, SriLankan posted a $ 105 million loss and as at end year, cited Rs. 170 billion as accumulated losses. The Presidential Commission of Inquiry into Sri Lankan Airlines had also revealed shocking details of how politicians and their favorites had run the national carrier into the ground.
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I used to work with UL, when EK was managing it. The culture and the quality of the product was unimaginable compared to now.
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The deal made was a win win result for both Air lines. Political influence after chasing EK, is the key factor for the situation now.
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We used to receive a 13 month salary. Our training facility was second to none. The profits were out of the roof. We had the latest technology. Our fares were higher, but the flights were full. We operated to many destinations than now.
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Travel agents and travel insurance companies were thriving. The hotels survived even when the war was happening. The best were willing to work with UL, not because of the salary but because of the culture.
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Mano / February 24, 2019
Sinhal Man !
Thanks for your Compliment.The present day white and yellow clad Mafia Dictators will not make easy for a decent and honest Dictator. Even Silly promised to be one, but he has proved himself a wolf in sheep’s skin.
We have to look for a ‘Sinhala Man’ in the Vidyodaya and Vidylanka Campuses.
But the entire Land and the seas around do not belong to you ‘Sinhala Man and your people’. Not anymore a Paradise Island.
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