Cost Cutting

SriLankan Airlines expects to sharply cut its losses during the current financial year but said the group will be in the black.
The national carrier said it expects losses of around US$ 10 mn to US$ 15 mn this year, sharply lower than the US$ 60 mn loss recorded during the last financial year.rn

rnAs a stand-alone entity SriLankan never made profit since it lost four aircrafts in a terrorist attack on the countrys only international airport in July 2001.rn

rnThe groups catering and ground handling operations however made profits.rn

rnA statement says the airline plans to add new routes, aircraft and frequencies during the year in a bid to optimize revenues.rn

rnHowever, the exclusive catering rights given to Sri Lankan Airlines under a five-year agreement, ends in December this year.rn

rnSriLankan Catering is the sole supplier of meals to all airlines landing in Colombo.rn

rnThe government is keen to open up airport and aviation services.rn

rnCatering services are also likely to being ope