SriLankan Airlines to boost cargo, cut costs with new Airbus aircraft

Apr 29, 2013 (LBO) – State-run SriLankan Airlines expects to boost freight volumes especially on long haul flights as well as cut running costs, with the acquisition of 13 wide-body Airbus aircraft, chief executive Kapila Chandrasena said. In the year to March 2012, SriLankan’s passenger factor rose to 79.1 percent from 76.7 percent a year earlier, according to its annual report.

In calendar year 2012, according to the central bank data its passenger factor had risen further to 81 percent, but cargo factor had fallen to 53 percent from 55 percent.

Chandrasena said in some parts of the network the airline was seeing passenger factors of 95 percent and they had also been able to increase yield.

Last year yields rose 12 percent, he said but costs were higher compared to competition.

The new aircraft will also standardize the service across different aircraft, Chandrasena said.

Pricing can be improved with a better product.

The A330s will be deployed on medium haul destinations such as the Middle East Thailand and China, which are high passenger volume destinations, he said.

Sri Lankan has newer fleet of eight A320s which are deployed on short-haul routes.

Sri Lankan made operating losses of 20.5 bill