No challenge is greater than the collective determination to overcome it, said SriLankan Airlines CEO, Richard Nuttall in an exclusive interview with Vishal Kashyap, Managing Editor, Aviation World. The airline has managed to recover with strong demand despite of the ongoing economic crisis at a time when the government is exploring options for disinvestment of the airlines as well its subsidiaries. Richard shares his thoughts on the challenges, economic crisis, policies and disinvestment issues which need to be addressed shortly for smooth functioning of the airline.

Post-pandemic recovery: How the airline is hoping to ride the recovery wave? what is the most important lesson the airline has learnt through the pandemic?
On a positive note, SriLankan Airlines has recorded a strong recovery in demand over the recent months, irrespective of ongoing challenges. We believe that demand will continue to further normalize in the months ahead as global travel bounces back.

The most important lesson that we learnt in combating the pandemic is, perhaps, honing the ability to evolve and adapt to make the best out of any situation, be it an opportunity or challenge. As a result, since the pandemic, we have been paying special attention to building agility into our plans.

Being the national airline of Sri Lanka, what are your priorities amidst the ongoing economic crisis?
SriLankan Airlines is essentially the glue that holds SriLanka’s connectedness to the world, and this is never more apparent than in times of adversity. SriLankan will have a significant role to play as the country gears up for a revival in tourism. Currently, SriLankan accounts for a large share of the seat capacity into SriLanka and is a leading carrier in most of the traditionally strong markets for tourism to SriLanka. We are also the only carrier whose primary marketing goal is to increase traffic to SriLanka. For e very other carrier, Sri Lanka is just a part of a network.

Our in-market expertise and knowledge is a vital part of the ecosystem that drives tourism to the country. In addition to tourism, we are a major facilitator in SriLanka’s global business network, whether this be carrying businessmen and workers or as the largest carrier of air cargo between SriLanka and the world. Our priorities therefore are to reinforce our presence in the key markets and to return to medium-term growth both to be a catalyst for and to support the needs of the SriLankan economy.

With no further funding support from govt. what are the revival plans of the airlines.
SriLankan has received no funding from the Government of Sri Lanka since early 2021 – at a time in which nearly all airlines needed some form of assistance due to COVID-19.Since then, we have achieved a considerable financial turnaround and recorded an operating profit, year to date for the current fiscal year.

We have, however, faced some financial headwinds as a result of the jet fuel shortage in Sri Lanka this past summer. There was no fuel in the country for two months and we incurred considerable costs maintaining connectivity for the country through technical stops, fuel tankering and payload restrictions. As a result, expected profits that were to be used to maintain and grow the fleet did not materialize.

We have shown that the airline can make money, but we need to maintain and grow our fleet to deliver economies of scale and raise the funds necessary to pay past debts that have nothing to do with the running of the airline today.We are in discussions with our many stakeholders exploring different ways forward.

The Govt. has decided to gradually privatize SriLankan Airlines subsidiaries? How do you see the turnaround factors and execution timings?
We support the Government’s decision to privatize the business. This will allow us to raise capital and make the investments in aircraft, equipment and expertise that we need to grow the business to the benefit of the SriLankan economy.

SriLankan Airlines business model is much based on code sharing, which gives it an edge to serve more pax. Are you looking at more such arrangements in future?
Definitely, as codesharing enables us to expand our network and reach without investing in new routes; and in turn to expand our customer base at a lower cost. SriLankan Airlines, as a medium-sized carrier operating to regional hubs in the Far East, Middle East and Europe, has been successful in elevating its network to another level through codeshare collaboration. We are a member of the Oneworld Alliance and we work with both Alliance carriers and a number of other major airlines.

Tourism is the biggest source for Sri Lanka? What steps are being taken to encourage more tourist inflow in the country?
Tourism is recognized as a sector that is capable of making a relatively quick turnaround and bringing in much needed foreign currency to Sri Lanka, in light of the economic crisis in the country. Progress in political stability and the efforts of Sri Lankan diplomatic missions have given rise to many countries pledging their support and relaxing their travel advisories to Sri Lanka. Such conditions are undoubtedly conducive toward restoring traveller confidence to visit the island. Local industry stakeholders have also taken strong steps to promote and help Sri Lanka reclaim its position as one of the most desirable holiday destinations in the world, including undertaking promotional campaigns and facility refurbishments to welcome tourists during the upcoming winter season.

India is big market for you? What are current operational details in terms of number of flights, airports and seat allocations?
India has been Sri Lanka’s primary inbound tourism market for many years and is therefore of the very highest priority. SriLanka is also a preferred transit point for Indian travellers, especially those hailing from the South, due the wide-ranging connectivity offered by SriLankan Airlines from Colombo to the Far East; Europe; the Middle East; and Europe.

At present, SriLankan Airlines flies fromChennai; Mumbai; Tiruchirappalli; Madurai; Kochi; Trivandrum; Hyderabad; Delhi; and Bangalore with 90 weekly flights to Colombo and beyond. Traffic is still subdued in much of Asia as we all return from the Pandemic, and Indian traffic to SriLanka has been affected by highly dramatized media reports of the country’s recent difficulties. However, as these events are now largely behind us, we expect Indian traffic and flights to grow strongly in the near future.

There are many turnaround stories in global aviation. What is your biggest asset that motivates you to take up the ongoing challenges?
Every turnaround story is different and shaped by its own unique set of circumstances. In my opinion, SriLankan Airlines’ most prized asset is its people. Here we have a group of professionals whose skills and backgrounds may vastly vary, but share a common commitment, resilience and optimism to keep going despite setbacks, of which there have been many in the history of the airline and Sri Lanka. I have every confidence that our team has what it takes to weather the current storm and help the airline reach greater heights in the future.

Anything specific if you would like to share with the industry?
No challenge is greater than the collective determination to overcome it. The past two years have proven just that for the people of SriLankan Airlines, by agilely shifting gears to cargo operations when passenger demand was nil to refueling aircraft through tech stops in foreign airports when the local supply of jet fuel ran dry. Resilience is one of the most under-estimated attributes in the corporate world. But for SriLankan it is part of our DNA. We are looking forward to a strong future.