Wickremesinghe: The government will absorb the airline’s losses and debts

THE Sri Lankan government is looking for suitable partners to manage its ailing national carrier, SriLankan Airlines, which has an accumulated debt of US$3.5 billion.

A top government source told TTG Asia e-Daily that expressions of interest from interested investors will be called in two weeks. Further details were not given at press time.

Earlier on Tuesday this week, prime minister Ranil Wickremesinghe told reporters that the government would absorb the airline’s losses and debts. Promising to retain the airline’s 7,800 workforce, the government has also said that it will finance and manage the airline until October this year when a viable partner is found.

He said: “If we don’t solve the issue of debt in SriLankan Airlines now, the airline will go bankrupt and our tourism sector will also collapse. This should not be allowed to happen.”

Wickremesinghe added that an order for four new A350 aircraft has also been cancelled in the first cost-cutting step, halting its fleet renewal plans announced earlier this year.

The cabinet of ministers have also agreed to enter into a partnership to manage the airline. This is similar to an earlier arrangement with Emirates, before the Dubai-based carrier exited in 2008, which had a 43.6 per cent stake plus management.

A meeting between Qatar Airways’ CEO Akbar Al Baker and Sri Lankan prime minister Ranil Wickremesinghe in Colombo in January 2016 had triggered speculation that the Doha-based carrier may be eyeing SriLankan Airlines.

According to its last 2014/15 annual report, SriLankan Airlines suffered a loss of 16.3 billion rupees (US$111.8 million), while assets stood at 78.2 billion rupees.

The airline has been struggling since 2008 due to political interference in operations, mismanagement, previously high oil prices and competition, particularly from the Gulf carriers on the lucrative Middle Eastern routes.

Paul Richardson, newly-appointed executive vice president and COO of the Outrigger Enterprises group

OUTRIGGER Enterprises group has appointed Paul Richardson as its executive vice president and COO.

Based in Hawaii, Richardson will be responsible for the company’s global operations spanning the Asia-Pacific, Oceania and Indian Ocean regions, provide guidance on key topics and issues affecting the company, and oversee and direct strategic operational leadership.

Prior to joining Outrigger, he was based in Shanghai as COO Greater China for AccorHotels. Richardson had also held senior management positions with Starwood Hotels and Resorts over the 10 years that he was with them.

Wai Mun Wong is the new vice president, global supplier management, Asia-Pacific of Carlson Wagonlit Travel

CARLSON Wagonlit Travel (CWT) has appointed Wai Mun Wong as vice president, global supplier management, Asia-Pacific. She was formerly its interim head.

Based in Singapore, Wong will be responsible for developing partnerships with suppliers, and supervising airline, hotel, car rental and global distribution system agreements in Asia-Pacific.

She has been a key member of CWT’s global supplier management team since 2012 and has over 22 years of experience in the travel industry.

Wong will report to Scott Brennan, executive vice president and head, global supplier management.

THAI AirAsia (TAA) will commence daily flights between Bangkok and Vientiane on July 1, 2016, making it the first budget airline to connect Thailand to the Lao capital.

The new service will leave Bangkok’s Don Mueang International Airport at 12.05 daily, arriving at Wattay International Airport in Vientiane at 13.25. The return flight will depart Vientiane at 14.15 and arrive at Bangkok at 15.35.

The launch of the new route comes on the back of “very strong feedback” for TAA’s first connection between the two countries on the Bangkok-Luang Prabang route, which achieved an average load factor of 80–85 per cent after its inauguration on March 24, 2016, said Santisuk Klongchaiya, director of commercial.

TAA also hopes the new direct route would enhance business and tourism flow between both countries, he added.

Until TAA recently gained air traffic rights to Luang Prabang, LCCs were not allowed to fly to Luang Prabang or Vientiane.

Bookings for the new flight are available at a promotional fare from 990 baht (US$28.30) per way. The promotion is valid until May 8, 2016 for travel from July 1, 2016 to May 22, 2017.