16 May, 2022

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SriLankan Airlines Issues RFP For Lease Of Up To 42 Aircraft; Where Has Rationality In Governance Gone?

By Chandra Jayaratne

Chandra Jayaratne

Ch-Aviation, an influential airline intelligence provider, founded in 1998 in Chur in Switzerland, maintains a new portal providing decision-makers around the globe with relevant and up to date airline intelligence and insightful news on the industry. It carries a new item date lined 11th April 2022, titled SriLankan Airlines issues RFP for lease of up to 42 aircraft”[1] and extract of which is quoted below:

SriLankan Airlines (UL, Colombo Int’l) has issued a wide-ranging Request for Proposals for the dry lease of up to 42 aircraft covering all segments of jet aircraft.

The RFP is split into four separate calls, of which two concern current – generation Airbus narrow – and widebody aircraft, and the other two new-generation regional and long-haul aircraft.

The current-generation narrowbody request seeks the lease of up to eleven aircraft, which can be A320-200s, A320-200Ns, A321-200s, or A321-200Ns. Deliveries are tentatively scheduled between December 2022 and April 2025, although the carrier said it is willing to renegotiate this timeline with the selected lessor. The airline is also seeking up to ten A330s, either A330-200s or A330-300s. Deliveries are expected to commence in December 2022 and continue through October 2025. SriLankan Airlines intends to lease all of the current-generation aircraft for 4-6 years each and requires that the aircraft be less than 15 years old at the time of delivery. They can be delivered in pre-existing cabin configuration with an option of reconfiguration.

The new-generation RFP for regional jets concerns the dry lease of up to eleven aircraft, which can be A220-100s, A220-300s, E190-E2s, or E195-E2s. Deliveries are tentatively planned between December 2022 and April 2025. The lease duration will be six years or more. SriLankan Airlines said the aircraft have to be less than 15 years old at the time of delivery, although the requirement is moot as all four types have not been in production for that long.

Finally, SriLankan Airlines is seeking ten new-generation widebody aircraft with deliveries starting in December 2022 and continuing through October 2025 for leases lasting at least six years. The carrier identified the A330-800, the A330-900, the A350-900, the B787-9, and the B787-10 as preferred types.”

The above call for Requests for Proposals comes in the backdrop of the serious macro-economic, external debt and foreign currency illiquidity seriously impacting on lives, livelihoods of citizens and the solvency of Sri Lanka, a country then rated as ‘CC’ (A credit rating given to a prospective borrower that’s not of investment grade and implies a very high degree of risk). On 12th April 2022, the Governor of the Central Bank of Sri Lanka (CBSL) Dr. Nandalal Weerasinghe said that Sri Lanka will suspend Normal Debt Servicing and start negotiating debt restructuring with the CBSL deciding to resort to a Pre-emptive Negotiated Default of the Foreign Debt. The Central Bank Governor further pointed out that the scarce foreign currency reserve should NOT be used to service debt, adding that it should instead be used to purchase other essential items; and further that urgent arrangements are necessary to approach the International Monetary Fund, other Multilateral agencies and friendly nations for interim support, pending debt restructure and having in place an IMF Fund Facility support.

Following this announcement rating agencies dropped Sri Lanka’s sovereign rating to ‘C’ stating “Sri Lanka was downgraded deeper into junk by Fitch Ratings, which said the nation’s decision to suspend payments on its foreign debt has kicked off a sovereign default process. Fitch Ratings had earlier downgraded the nation’s long-term foreign currency to CC, one step above default. The decisions come amid widespread social and political unrest, which led the government on Tuesday to announce it will no longer service its external debts to conserve foreign currency for crucial imports, such as food and fuel”.

In the light of above it is obvious that those in governance have lost capability to make rational, sensible, strategic and prioritized best risk managed decisions in the interests of the nation and its citizens, in managing a multitude of crises the nation is facing at present. Those in governance and in charge of the affairs of SriLankan airlines have also become impacted by dissociative amnesia” in that they have forgotten the end results from the last re-fleeting initiative and losses inflicted on the nation and the associated serious economic crimes that were reported. Finally, those in governance and in charge of the affairs of SriLankan airlines appear to be “Living in Cuckoo Land” to expect that leading airline manufacturers, traders and lessors will respond with competitive normal best offers in response to the RFP’s in the current context.

[1] https://www.ch-aviation.com/portal/news/114486-srilankan-airlines-issues-rfp-for-lease-of-up-to-42-aircraft

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Latest comments

  • 17
    1

    It is very rational, if it is commissions you want.

  • 14
    1

    For Sri Lankan Airlines it has always been, “Nava Gilunoth Ban Choon.” These guys are so divorced from reality, that it takes my breath away!

  • 13
    2

    The Rajapaksas have run this country to the ground. They have ruined this country, taken bad situations and made it worse because of their disastrous policies, and high level of corruption. Their main intent was to line their deep pockets first, and throw a few crumbs to the people who voted for them. We are broke, hopeless, helpless, and our national assets have been abused by them, to their advantage, leaving us with nothing. People are suffering, but they don’t have the conscience, or the compassion to care. Damn them all.

  • 11
    2

    Oh come on, Mr. CJ, have some pity on those like Ashok Pathirage, Chairman of the airline and a leading light of Viyathmaga. How will they get their commissions when the IMF soon demands that the airline be terminated, in view of the fact that it loses 15 billion rupees a year? It’s cheaper to simply provide free tickets to all passengers on foreign airlines.
    The deal has to be done before the IMF finds out.

  • 7
    1

    What Sri Lanka needs most now, are new aircraft, new super highways, grand tall buildings, international airports and shipping ports in the village but not essential medicines, basic food or fuel for transport or cooking etc. Honorable Basil Rajapakse (kaput kark) Mr Ajith Nivard Cabraal (a sinister Mr Bean), doctor Punchi Banda Jayasundera (pending SC cases)and others should be invited to the Hague to hear charges of crimes against humanity…Because his excellency is holed up at Shangri-La overlooking GotaGoHomagama he should be excused until the heat becomes unbearable..

  • 2
    1

    CJ,
    If you do not do this now, you will deprive livelihood of very important patriotic (New definition of acronym VIP) people (VIPP – if you so desire) of this country!
    The interest of the VIPP is the important element!
    MARA would not care and he will do a SWAP of 100 times SLRs. 15 Billion from “Uganda – preferred destination, beyond once elitist ‘land of Seychelles’ – to achieve this goal!!

  • 1
    1

    This comment was removed by a moderator because it didn’t abide by our Comment policy.

    For more detail see our Comment policy https://www.colombotelegraph.com/index.php/comments-policy-2

  • 6
    2

    Is it a coincidence that ‘Ceylon’ sounds like ‘See Loan’ ?
    This island seems to be all about loans!

  • 6
    1

    Yet another bloody blunder from a set of clueless pigs.
    They say “when tbe gods want to kill you, they make you mad first”.
    Is that what is not what is happening with the Mara Clan?
    .
    How could you pile more debt on a failed airline? Since the day Sri Lankan and Emirates went their ways, Sri Lankan has been a burden.
    .
    It seems, these guys want to really mess up the entire country further before leaving.
    .
    I wish the military would have the sense to arrest these traitors and start asking them to cough out the stolen loot very soon.

  • 3
    1

    This is bizzare, stupid, and warrants laughter. This burden needs to go ASAP. This country has suffered enough bailing out this national disaster. Apologies to the employees. But folks you need to find new jobs. At least the qualified ones should. Mahinda and Namal’s girls from Hambantot can go back home. In fact you should have seen the writing on the wall unless you are smoking a hallucinogen.

  • 6
    5

    About 2019 a Malaysian Airlines senior pilot told me in KL that because of upkeep maintenance concerns sinhala land airlines was barred from Code Sharing by IATA.

    In addition I just watched an internet news item that sinhala land airlines was involved in transporting billions of dollars from sinhala land treasury to Uganda!! Mark my words like I fortold that the sinhala land will become beggar land the RATPACKses will seek refuge in Uganda after they have further SKIMMED the aid coming from the world bank, IMF and the dumb sinhalas who contribute to GO FUND ME and other projects to help the sinhalas.

    There is a saying that the peoples deserve their leaders! How true of sinhala land! They deserve their current leaders as the aided and abetted including by omission the rapes murders arson looting of ceylon tamils!

  • 6
    2

    Maybe the buggers want to loot more money through kickbacks and maybe use the same planes to fly out of the island. There are so many rogues in the Rajapaksa clan and they may need 42 planes to escape.

  • 3
    4

    Have you never heard of Thirukumar Nadesan, to name just one?

    • 3
      3

      Svenson, another mutt

    • 3
      1

      Sevson rename yourself as Banda Arachige Appuhamy Athulathmudali Saparamadu aka village idiot!!!! :)

  • 5
    1

    Svenson, pull your nose out of Mahinda’s pukka and smell the fresh air idiot. What about Nadesan? Yes, what about Nadesan, why do you think we Tamils think there are only crooks among the Sinhalese? Foolish fellow, crooks are everywhere.

  • 2
    1

    This was what was happening all these years and the people of this country were audacious enough to simply dismiss, any and all criticism of malpractice as LTTE influenced, Diaspora Influenced or ISIS influenced gobbledygook!!!
    There were stories that investors having dinner at the Taj, Hilton, Cinnamon grand getting phone calls to the HOTEL PHONE AND THE STAFF SO OBEDIENTLY BRING THE PHONE TO THE IDENTIFIED GUEST TO SPEAK TO AN IMPORTANT PERSON IN GOVERNMENT – WHO WERE THEN IDENTIFIED BY THE PROSPECTIVE INVESTOR AS THE SECRETARY, DEFENCE AT THAT TIME OR MR 10%.
    Of course the 10% has become 35% now to compensate for depreciation!!!
    Many are the foreign investment opportunities, SL has lost, due to these rascally detestable citizens!
    People take to deep thinking matters which they would have normally dismissed as ‘hearsay’ and/or ‘malicious gibberish’, until the PAIN HITS THE STOMACH!!
    Suppose until that time the stomach overrides the mental capacity of the mind to think rationally!

    • 2
      0

      Mahila, if you look Mahinda and clan fashioned their life style how Prabaharan lived…………….rob, launder and murder everyone who opposed them. There are huge LTTE supporters in Canada talking trash every day how tough they are and all. None of these buggers will go back and fight for the rights of the Tamils. It makes me sick to see these buggers sitting here in Canada deciding what the Tamils want in Sri Lanka while all their families are flourishing in Canada. I have had heated arguments with these fellows and all the time I feel I am talking to a brick wall, it just bounces back and hits me in the face. Then again I cannot keep my mouth shut. :(

  • 3
    0

    Glad some of you see what is going on. This has nothing whatsover to do with SriLankan Airlines.
    @
    It’s simply a way for the Politicians and their cronies to pocket Millions in commissions on the lease deals.
    @
    This was the case with the previous aircraft order. Additionally these aircraft were leased at above market rates for 12 years. This has been openly admitted to by the former CEO.
    @
    These lease contracts also had no termination clause – so the Airline has had to pay. They’ve repeatedly tried to renegotiate but without success.
    @
    Bottom line – it is impossible for the Airline to make money.
    @
    There was a one year investigation into all of this – still has not been made public.
    @
    As far as I am aware not a single person has been prosecuted over these crimes.

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