Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
SriLankan Airlines-model For Airline Privatization  
User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 30
Posted (12 years 2 weeks 6 days 15 hours ago) and read 5259 times:

SriLankan Airlines becomes a model for airline privatization in South Asia

SriLankan Airlines was used as a model for airline privatization in South Asia by the International Transport Federation, at a recent seminar on “Restructuring, Privatization and Globalization of Civil Aviation in South Asia”, in the capital of Bangladesh, Dhaka.

K.J.L. Perera, President of the Jathika Sevaka Sangamaya employees union of SriLankan Airlines made a presentation on the subject. The seminar was attended by union representatives of state-owned airlines in the South Asian region - Indian Airlines, Air India, Biman Bangladesh Airlines, Pakistan International Airlines, and SriLankan Airlines.

"SriLankan is the only privatized airline in South Asia, and other countries in the region are viewing us as a model because they are moving towards privatization themselves," said Perera. "The others had many questions about why SriLankan was privatized, how the partnership with Emirates works, how our union rights are protected, and the improvement of working conditions."

The manner in which SriLankan discloses information regarding its financial performance had impressed representatives of other airlines. "They had never seen such transparency from an airline's management," said Perera. SriLankan publishes its quarterly financial results in its staff newsletter, Monara.

SriLankan was privatized in April 1998, when the government of Sri Lanka sold a 40% shareholding to Emirates Airlines, which was also contracted to manage the company for a period of 10 years. Employees were gifted shares by the government in accordance with their service. The government of Sri Lanka retains the majority shareholding, while Emirates has increased its stake to 43%. The airline’s infrastructure underwent a thorough overhaul, which resulted in the adoption of a whole new approach to its operations. Cost-effective strategies were introduced; new pro-active management teams were put in place; computer technology became the basis of everyday activities; the airline’s network is constantly reappraised; and product enhancement has become a part of the airline’s philosophy. A key change was the acquisition of an all-Airbus fleet of A340, A330 and A320 aircraft, to replace the ageing Lockheed Tristars. The airline was also re-branded.

SriLankan Airlines presently flies to 42 destinations in 23 countries across Europe, the Middle East and Asia, and has been steadily expanding its services.

SriLankan's Voluntary Severance Schemes had been discussed in detail when participants queried whether privatization means having employees laid off. "I explained that our employees were given an excellent deal if they wanted to leave, and no-one was made redundant. They saw how SriLankan was able to survive the two crises of 2001 because we were already fit and trim as a company and were able to take the blows," said Perera. "They were particularly impressed that SriLankan is now recruiting more staff for its expansion, at a time when other airlines are trimming staff.”

Of particular interest had been SriLankan's strategy in the wake of the July 2001 airport attack and the September 11 attack which devastated airlines around the world. SriLankan's strategy of re-routing flights through Male after the airport attack, and the suspension of services to non-profitable destinations, also came in for much praise.

The contents of Collective Agreements signed by the airline with employee unions were also discussed. SriLankan’s collective agreements guarantee increments to employees, while other airlines have been unable to raise salaries for several years.

The many human resource development programmes that have been instituted since privatization to upgrade employees' skills were also discussed, as were its new grade structure and pay structure.

Media Relations Section
Corporate Communications Department
SriLankan Airlines Limited

May 12th , 2004

Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
2 replies: All unread, jump to last
User currently offlineSwissgabe From Switzerland, joined Jan 2000, 5266 posts, RR: 30
Reply 1, posted (12 years 2 weeks 6 days 15 hours ago) and read 5241 times:

Sorry, as you might have noticed, the full title to this post should be:
SriLankan Airlines becomes a model for airline privatization in South Asia

Smooth as silk - Royal Orchid Service /// Suid-Afrikaanse Lugdiens - Springbok
User currently offlineAF022 From France, joined Dec 2003, 2291 posts, RR: 1
Reply 2, posted (12 years 2 weeks 6 days 12 hours ago) and read 5212 times:

i think SH&E was involved as technical advisor. very few good privatizations anywhere in the world to get excited about .

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
SriLankan Airlines - Plans For Domestic Flights posted Tue Aug 19 2003 21:41:06 by Swissgabe
Future For SriLankan Airlines? posted Wed Dec 29 2004 17:46:18 by AirMale
Palestinian Airlines Slated For Privatization posted Tue Jul 29 2003 02:27:26 by EurostarVA
Business Class Travel For Airline Employees? posted Thu Nov 16 2006 21:00:21 by Paul
Yesterday(11/1) Marked 51yrs For Airline Bombing posted Thu Nov 2 2006 20:59:01 by Skyexramper
Porter Airlines Preps For Departure In Toronto:) posted Fri Oct 6 2006 07:09:10 by CF188A
What Do Airlines Look For In New Pilots? posted Fri Aug 4 2006 16:18:13 by BowflexBrennan
PC-12 For Airline Service posted Mon Jul 10 2006 23:34:01 by SBNair3022
Portugalia Airlines, Best Regional Airline Europe posted Thu Jun 29 2006 19:52:00 by WINGS
Websites For Airline Retirees posted Wed Apr 12 2006 04:15:44 by Mrmoose