FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.
FINANCIAL CHRONICLE™

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka

Click Link to get instant AI answers to all business queries.
Click Link to find latest Economic Outlook of Sri Lanka
Click Link to view latest Research and Analysis of the key Sectors and Industries of Sri Lanka
Worried about Paying Taxes? Click Link to find answers to all your Tax related matters
Do you have a legal issues? Find instant answers to all Sri Lanka Legal queries. Click Link
Latest images

Latest topics

» Latest Financial Status and Future Outlook of SMB Finance PLC
by ChatGPT Yesterday at 11:15 pm

» Latest Financial Status and Future Outlook of Overseas Realty PLC
by ChatGPT Yesterday at 11:00 pm

» Latest Financial Status and Future Outlook of Merchant Bank of Sri Lanka & Finance PLC
by ChatGPT Yesterday at 10:55 pm

» McDonald’s අපේ නෙමෙයි අපේ බෝස්ගේ – අබාන්ස් කියයි
by ChooBoy Yesterday at 10:19 am

» AI Assistance for Stock Market Research and Analysis
by ChatGPT Yesterday at 7:12 am

» Comparative Analysis of the Insurance Sector
by God Father Tue Mar 26, 2024 11:46 pm

» Sri Lanka: Why Pay Exorbitant Taxes?
by ChatGPT Tue Mar 26, 2024 10:52 pm

» LANKA CREDIT AND BUSINESS FINANCE PLC (LCBF.N0000)
by K.R Tue Mar 26, 2024 3:15 pm

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by D.G.Dayaratne Tue Mar 26, 2024 9:11 am

» SIYAPATHA FINANACE PLC (SLFL.N0000)
by ChatGPT Tue Mar 26, 2024 7:58 am

» FINANCE AND LEASING SECTOR
by ChatGPT Mon Mar 25, 2024 6:45 am

» LOLC FINANCE PLC (LOFC.N0000)
by ChatGPT Mon Mar 25, 2024 6:36 am

» CIC HOLDINGS PLC (CIC.N0000)
by ChatGPT Mon Mar 25, 2024 6:18 am

» UNION ASSURANCE PLC (UAL.N0000)
by ChatGPT Mon Mar 25, 2024 6:15 am

» First Capital Holdings PLC: Current Financial performance and future outlook
by God Father Sun Mar 24, 2024 10:58 pm

» LankaBizz: Sri Lanka's First ever Artificially Intelligent (AI) Business and Research Assistant
by God Father Sun Mar 24, 2024 7:27 am

» HOTEL AND TRAVEL SECTOR
by ErangaDS Wed Mar 20, 2024 7:22 am

» CIC Holdings Good Times Ahead
by ashan silva Mon Mar 18, 2024 11:00 am

» EPF Fund keep eye on low P/E Shares
by K.R Mon Mar 18, 2024 8:45 am

» SINS - the Tailwind effects of a crisis hit Economy
by Hawk Eye Mon Mar 18, 2024 8:37 am

» Ceylon cold stores
by Hawk Eye Mon Mar 18, 2024 8:25 am

» Asha securities Provide buy signal for CIC
by ddrperera Fri Mar 15, 2024 1:10 am

» CSE ready for another Downtrend?
by D.G.Dayaratne Thu Mar 14, 2024 11:24 am

» LankaLAW Forum : Sri Lanka’s #1 Discussion Platform for Legal Questions and Answers
by blindhog Thu Mar 14, 2024 9:14 am

» Sri Lanka poised to benefit from demand surge for ‘non-China origin’ graphite
by samaritan Wed Mar 13, 2024 1:31 pm

LISTED COMPANIES

Submit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post


CONATCT US


Send your suggestions and comments

* - required fields

Read FINANCIAL CHRONICLE™ Disclaimer



EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)



CHRONICLE™ YouTube

Disclaimer
FINANCIAL CHRONICLE™ Disclaimer

The information contained in this FINANCIAL CHRONICLE™ have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever. Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, FINANCIAL CHRONICLE™ blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

Further the writers and users shall not induce or attempt to induce another person to trade in securities using this platform (a) by making or publishing any statement or by making any forecast that he knows to be misleading, false or deceptive; (b) by any dishonest concealment of material facts; (c) by the reckless making or publishing, dishonestly or otherwise of any statement or forecast that is misleading, false or deceptive; or (d) by recording or storing in, or by means of, any mechanical, electronic or other device, information that he knows to be false or misleading in a material particular. Any action writers and users take in respect of (a),(b),(c) and (d) above shall be their own responsibility, FINANCIAL CHRONICLE™ its blogs, forums, domains, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental violation of securities laws of any country, damages or loss arising out of the use of this information.


AI Live Chat

You are not connected. Please login or register

SriLankan Airlines to get 13 Airbus aircraft with 6 A350s

3 posters

Go down  Message [Page 1 of 1]

sriranga

sriranga
Co-Admin

Ten new aircraft for loss-making SriLankan Airlines, Boeing also seeks share in the pie

The Cabinet has approved a staggering more than two and half billion US dollars (over Rs. 315 billion) for a re-fleeting programme of SriLankan Airlines which is already saddled with severe losses.

The programme, approved on April 18, entails the purchase of six Airbus A 330-300 aircraft with Rolls Royce Trent engines at a cost of US$ 234,389,333 each (or over Rs. 29.5 billion). Also to be purchased are four state-of-the-art Airbus A 350-900 with Rolls Royce XWB engines each costing US 283,308.300 (or over Rs. 35.6 billion).

Besides the prices for the ten new aircraft, the Government will also pay millions of dollars (or billions of rupees) for several other accompanying costs, including purchase of spares for ten years.

On a recommendation made by the Minister of Civil Aviation, Priyankara Jayaratne, the Cabinet has approved an initial US$ 80 million (over Rs. 10 billion) for Sri Lankan Airlines for what is described as “wide-body re-fleeting” in 2013. No details of how this money would be disbursed are explained. It is also not clear how the Government proposes to raise funds for the purchase of the ten new aircraft.

Besides Airbus Industrie, the US-based Boeing also competed for the aircraft deal. The US firm was strongly backed by an important Government personality serving overseas. A Boeing team was also in Colombo to lobby for the purpose.

At present SriLankan Airlines has a fleet of 13 aircraft. Six of them are Airbus A 3240-300 and seven are A 330-200. Whilst the age of the A 340s is between 13 and 18 years, the A 330 fleet, according to Minister Jayaratne is nine to 13 years. According to the latest report of the Central Bank (2012), SriLankan Airlines suffered an operational loss of Rs 20.5 billion.
http://www.sundaytimes.lk/130428/news/govt-approves-rs-315-billion-deal-with-airbus-42571.html

http://sharemarket-srilanka.blogspot.co.uk/

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

Apr 28, 2013 (LBO) - State-run SriLankan Airlines will acquire six Airbus A350-900 and seven A330-300 aircraft to upgrade its product and cut costs starting from October 2014, chief executive Kapila Chandrasena said.

SriLankan will acquire 10 aircraft from Airbus through a mix of operating and finance leases in a deal which has a 'present value' of 1.2 billion US dollars and another three from an aircraft leasing firm, he said.

Cabinet approval has been given to sign a memorandum of understanding with Airbus for 10 purchase options and the first aircraft is expected to arrive starting from October 2014, he said.

The aircraft are to be delivered over 7 years.

In the first phase six Airbus A340 aircraft which are up to 18 to 16 years old will be replaced by A330-300 aircraft.

Seven A330-200 aircraft which are around 13 to 16 years old will be replaced starting from 2017 with A350-900 aircraft. Three will come from an aviation leasing firm as there were no manufacturing slots available at Airbus in that period.

The balance four A350s will be acquired from Airbus Industries starting from 2019.

SriLankan was aiming to maintain a fleet with an average age of about five years. SriLankan has already modernized its A320 narrow body fleet of eight aircraft.

With several very old aircraft in the fleet, the airline could not give the same level of service to all passengers and operating costs were also high.

"If you look at our configurations we could not standardize service," Chandrasena said.

"With the new aircraft everyone will get the same experience.

"Fuel is 50 percent of our operating costs. With newer aircraft fuel is about 40 percent. That is a huge quantum of savings."

Even after accounting for acquisition costs, a net gain of 7 to 10 percent could be made with new aircraft, he said.

The aircraft will be financed with a mixture of finance and operating leases. Industry practice was to have about 30 percent on finance leases, Chandrasena said.

Last year the airline made an operating loss of 20.5 billion rupees, according to published data.

The new aircraft would also be able to carry a full load of passengers without sacrificing cargo over long haul destinations, he said.

Airbus will also give 31 million US dollars worth tools, equipment and training to set up an aircraft maintenance and repair facility (MRO) for the new types.

"We are also targeting the regional airlines that will be an additional revenue stream for SriLankan as well."

Sri Lankan Engineering is already servicing A320 aircraft for a number of regional airlines at its facility in Katunayake. A second facility is to be set up in Mattala.
http://www.lankabusinessonline.com/news/SriLankan_Airlines_to_get_13_Airbus_aircraft_with_6_A350s/1532896203

UKboy

UKboy
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics

Besides Airbus Industrie, the US-based Boeing also competed for the aircraft deal. The US firm was strongly backed by an important Government personality serving overseas. A Boeing team was also in Colombo to lobby for the purpose.
It would have been a crazy idea if they had select boeing. We have a very small fleet & should not be using aircraft from two manufacturers.

Sri Lankan fleet badly need modernisation. But find money is the question.

Sponsored content



Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum