SriLankan Airlines cuts flights to Mattala; saves US$18 mn
COLOMBO (EconomyNext) – SriLankan Airlines said will save 18 million dollars by cutting flights to unprofitable routes like Mattala and Moscow and re-deploying aicraft on more profitable routes.
The change was effected on the direction of new State Minister of Aviation Faizer Mustapha, the national carrier said in a statement.
The statement indicated the airline will cut flights to the Mattala airport in southern Sri Lanka which has been criticisd as not being commercially viable by the opposition which won power in last week’s presidential poll.
"The immediate schedule changes which will see the airline rationalising its scheduled operations to and via (Mattala) and enhancing capacity to other high demand Middle East destinations, while reducing capacity to underperforming routes such as Moscow," the statement said.
"This translates to an annual bottom line improvement of approximately 18 million US dollars."
In the medium term, the airline is also "critically reviewing its entire route network, again with a view to being more commercially and bottom-line focused," the statement said.
The airline said it has already achieved a "significant improvement" in its financial performance for the current financial year. The airline had been losing about 200 million US dollars a year and was expected to make losses until
"These commercially driven initiatives will help the airline to further improve the financial performance in the near term while continuing to deliver affordable travel options to its customers."