SriLankan Airlines to be given to India’s TATA? ~ Lanka Hot News Latest Hot News From Sri Lanka
The heads of the government are discussing the possibility of transferring SriLankan Airlines, which has recorded a net profit of USD 3 million in the financial year 2022-23, to India’s ‘TATA Company’.
TATA, one of India’s largest business groups, already operates several airlines including Air India.
The government said that SriLankan Airlines is at the forefront of loss-making companies in Sri Lanka, and therefore it should be restructured.
Meanwhile, Aviation Voice has reported that SriLankan made a net profit of USD 3 million in the 2022-23 financial year for the first time after Emirates exited from management in 2008.
During a Committee on Public Enterprises (COPE) meeting held recently, the Srilankan Airlines said that it has earned USD 104 million as operating profit. As a result, it has earned a net profit of USD 3 million once the interest expenses of USD 101 million are excluded.
However, the airline recorded a loss of Rs.69 billion mainly due to the exchange losses (exchange loss of Rs.63 billion), but this is said to be a decrease from the loss of Rs.163 billion recorded in the year 2021-22.
During the COPE hearing, SriLankan Airlines Chief Executive Officer Richard Nuttall said that for the 2023-24 financial year, SriLankan Airlines has set a revenue target of over USD 1 billion, with USD 60 million from ground handling and USD 40 million from catering services.
He said the airline saved USD 80 million in 2022 as it was the only state-owned enterprise to cut wages for employees due to the Covid-19 pandemic.