You are on page 1of 29



V Vision & Mission
V Introduction
V Ten Year Review
V Key Performance Indicators
V The Business Turnaround Plan
V Challenges Faced
V Worldǯs Successful Airlines and Strategies
V Factors Influencing Success
V Vision
î DzTo be the most preferred airline in Asia dz

V Mission
î O














V Srilankan Airlines began operations in 1979 as the National Carrier
of Sri Lanka
V Serves 45 destinations in 25 countries in Europe, the Middle
East, South Asia, Southeast Asia, and the Far East.
V Codeshare partnerships with bmi (formerly British Midland), Etihad
Airways and Malaysian Airlines
V Shareholders
î Ñ

î & 
î &

V Subsidiary - SriLankan Catering (Pvt) Ltd. is a fully owned
subsidiary of SriLankan Airlines.
V Workforce - More than 5000 employees in Sri Lanka and overseas
V In-flight comforts Ȃ Business and Economy Class Seats
V FlySmiles Flyer Program
V Srilankan Cargo
V Srilankan Engineering Ȃ Technical Arm
V Ground Services
*$$$ *$$# *$$* *$$( *$$' *$$" *$$) *$$+ *$$, *$$-

  / 0


î Arising global fuel costs

î Struggle of the national tourism industry to survive in a

wartime scenario

î High interest rates

î Major transition in management

î Increased competition from subsidised airlines

Î å 

Estimated Loss  2 


"$$$ Challenges Business
Faced Turnaround Plan
'$$$ & Restructuring


#$$$ Crisis

# 1
* 1
( 1
' 1

V Fuel Surcharges by Competitors
V Global Economy
V Passenger Revenues (decreased by 5%)
V Cargo Revenues (decreased by 8.5%)
V Overall Passenger Capacity (decreased from 12,599 million to
11,731 million)
V Unit Costs (increased from Rs. 46.48 - 50.71 per Tonne
V Average Staff Strength (significant decrease)
V i
  3Earn more, spend less and waste not3
î Restructuring of passenger and cargo revenue generation

î Restructuring of route network

î Savings through increased fuel efficiency

î Reducing companyǯs fixed costs

î Renegotiating of contracts with service providers

î Optimising of sales channels

î Reduced IT and Communication costs

î Increase Productivity by focusing on People, Process and

V Optimising Revenue
V Improving Service Delivery
V Enhancing Srilankan Engineering
V Increasing Fuel efficiency
V Increasing Productivity
V Technology Requirements
V New services to Rome utilizing the market opportunities in Italy
V Temporary Suspension of Loss-Making Sectors
î ‰

V Increasing operations to key destinations

î 2 


&   & m 

î å





5i  6
î &   




V Increasing bookings through its Internet Booking Engine

V Customer Loyalty Programme Ȃ FlySmiles
V DzSrilankan Holidaysdz teamed up with Singapore , Thailand and Malaysia
î !



î &

V Introduction of new products Ȃ eg. HOTSEATS

î ` 

V SkyChain Cargo Handling System for customer convenience and

operational efficiency
î 2 


V Emphasis on Inflight Service

î `    
      ' *$

î &      


V Improvement in Meal Services


î 0


Î Renegotiation of contracts with overseas caterers resulting in significant savings

V Enhancement to inflight entertainment

V Duty free sales on new range of 180 products including worldǯs
leading brands and Srilankan items
V Heart-start machines for medical emergencies
V Recruitment of new Chinese passenger assistants for Beijing service
V SMS alerts on flight service
V Uplifting the service standards of ground handling services for other
V Training of new airport staff and sky marshals
V Innovation and cost control
î 2  






V Marketing programmes to increase awareness of SriLankan
Engineeringǯs capabilities as an MRO, in order to attract new
customers and enhance revenue
V Major Contract with Indian Carrier IndiGoue to carry out maintenance
V Training more aircraft engineers for Airblue, and to carry out
maintenance checks for the Pakistani carrier
V Continued emphasis on key areas like fuel efficiency and punctuality
V Structural modifications to the fleet in-house resulting in cost-savings
V Use of diesel-operated Ground Power Units to power internal
systems and air-conditioning on aircraft parked at BIA, instead of
using Auxiliary Power Units of the aircraft
V Reduce fuel burn while landing
V Flying shorter routes whenever possible.
V Re-evaluation of the choice of alternate airports
V Stopping of over-fuelling of aircraft, to reduce weight
V Focusing on having Ǯcleanǯ aircraft to reduce drag while in flight
V Tankering more fuel than required from cheaper points
V Continuing to review company structure for greater effectiveness and
V Customising development intervention programmes to the
requirements of user departments and business demands
V No-Pay Schemes, to reduce staff costs
V Continuous improvement of welfare facilities
V Engaging employee unions in the decision-making process
V Enhancement of recruitment processes for the future
V Consolidation of Data centers in Colombo and Katunayake
V Maximizing the utilisation of existing systems to user
V Creating a common customer database to integrate different sub
business units which interacts with customer profiles
V Revamping the Corporate website
î 2 




î 0 


V Introduction of a CRM system

V In-house developments of new systems for cost saving
V Minimise IT risks through IT security audits
V Singapore Airlines
V Cathay-Pacific Airways
V Qatar Airways
V Thai Airways
V Asiana Airlines
V Malaysian Airlines
V Emirates Airways
V Etihad Airways



î First to introduce hot meals, free alcoholic and non-alcoholic
beverages, personal entertainment systems, and video-on-demand
in all cabins.

î Maintains the youngest fleet of aircraft among all major air carriers


î New aircrafts are sub-branded further to distinguish from others

î Invests heavily in R&D, innovation and technology as an integrated

part of the business strategy
V The famous Singapore Girl
V Rigorous training programs for the cabin
and flight crew
V Strong Financial and cash position to
internally fund purchases and limit interest costs



V SIA carefully hedge up to 50 % of its fuel contracts 2 years in

advance to avoid cyclical and often large volatility in fuel prices
V Operates wide-body aircraft and flies mostly long haul



V Newer fleets resulting in low maintenance and replacement costs

î m   



V Distinctively uses Asian elements to create a premium product that

appeals not only in its home markets but also to a Western audience.
V High-level services provided especially for 1st class section
V Latest technologies used to enable faster and more efficient handling
of functions such as ticketing, baggage and cargo handling
V Sporting event sponsorships for promoting brand awareness
î 8 


V Recruitment from over 100 countries around the world and

provide training to them to the highest standards
V Invest millions of dollars to provide advanced engineering support
V Huge investments on promotion campaigns
V User-friendly website to book and confirm flight reservations
V Development of catering service
V In the process of implementing e-ticketing to save time and
reduces the need for check-in personnel
V Established a Tourism Alliance to promote Thailand tourism and
travel industry
V Increased cooperation at the domestic and
regional levels as well as with other global alliances
to strengthen the airlineǯs competitive edge and
expand market share
V Implementation of the Customer Relationship Management
V Automated Self Service System for domestic travel only to
facilitate passengersǯ demand in areas of reservations and check-in
V Frequent Flyer Programs
V Promotions through media, co-marketing efforts with hotel chains
and credit card companies and travel agents
V Maintaining high safety standards - Compliance with ISO 9000
V People
V Service Product/Promotions
V Route System
V Fleet Management
V Revenue/Cost Control
V Financial Management
V    m 
m 0
/ /   :m 
:m :0
V 9//   
; : <*$-
V 9// 

 /*/:$#--)+*$#,+/m&` å& 20m`&
V 9// 

 /. %*$å
/   /å
 /m  / :"*'*,(-: 

V 9// 

V 9//
/ :"*'*,(-: