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Sri Lanka state carrier may acquire six Boeing-777s
Sri Lankan Airlines now operates a fleet of 19 aircraft made up of 6 Airbus A320s, 5 A330s, 6 A340s and 2 De Havilland Twin Otter floatplanes.
Aug 20, 2011 (LBO) - State-run Sri Lankan Airlines will boost its fleet to 28 aircraft over the next four years, which may also include up to six Boeing 777 long haul jets, officials said, as tourist arrivals soar after the end of a civil war.
Two more A320s have been ordered on operating leases which would be delivered this year, head of Commercial G T Jeyaseelan said. Two older A320 will also be phased out at the same time keeping the fleet at 19.
Boeing Option
SriLankan is evaluating offers from Boeing and Airbus to modernize its long haul fleet. Both manufacturers have been asked for proposals involving leases of new aircraft combined with a plan to take back or re-sell three ageing A340 aircraft.
Chairman Nishantha Wickremasinghe said quotes from both firms are being evaluated and a decision may be announced as early as in two months.
"If are going for Boeing we like to have adequate numbers to service it," Wickremasinghe said. "You can't have one or two. (It will be) either four or six."
SriLankan Airline aircrew is now trained for Airbus aircraft.
A new type means fresh training for flight crews, technicians and investments in spares.
The state has committed 500 million dollars in taxpayer money as equity to fix the airline over the next five years for the airline which has posted a string of losses. The government will also give sovereign guarantees for the airline to borrow.
The first 100 million dollars cash injection is expected in 2012 after next year's budget is passed by parliament.
Critical Mass
The airline plans to boost its fleet to 28 over the next four years, as part of a five year strategy started in 2010 to double its fleet while keeping is fixed overheads and support facilities the same.
"We have to re-align our costs," Jeyaseelan said. "We do not have the critical mass. So we have to grow."
But prospects are now brighter with tourist arrivals picking up after a civil war ended in May 2009.
Tourist arrivals to Sri Lanka rose 36 percent to 465,000 in the seven month to July after rising 40 percent in 2010 after a war ended in 2009.
SriLankan is also carrying traffic to and from India and Maldives. China is also a key part of the airlines' future strategy.