What will be the future of Sri Lankan Airlines?

(Lanka-e-News- 12.Jan.2015, 11.30PM) The national airline beefed up with political and “Nil Balakaya” friends during the past ten years will now face a very decisive juncture, if the airline is to push forward with its planned Best Airline in South Asia dream a reality or even merely to survive.

With the current political change, taking place the airline will have an opportunity to run as a proper business establishment, if it is allowed to function away from political interference, using the professional, capable senior managers kept away during these recent years. The airline was run by people close to Family and their interested friends, cherry picking the “yes men” to run the critical areas of the airline. From Marketing, advertising Commercial and Revenue Management inexperience people were put in to test run and only to agree to the demands of people appointed by the family.

All these managers happily bowed and agree whenever Mahinda wanted an aircraft with 300 plus seats, for his many trips. They did not consider nor had the courage to discuss, challenge the loss of face and revenue losses to the company by displacing thousands of paying passengers, from many countries and the cost of providing them hotels, transfers and other facilities.

The Katunayake insiders say that a security firm owned and run by a family member was deployed in all areas in addition to Sri Lankan security staff including a retired Maj Gen. to head the division overall.

Promotions, especially Grade 9/10, those were strictly adhered and controlled by high standards even prior to Emirates involvement, were violated when the management started just distributing promotions G10 and G11 to people with no experience but to whom they knew.

If a team of professional consultants have a one on one with these managers the glaring truth will be exposed. The HR division also is run by politically appointed lot with new faces with fast promotions, only follow orders and nothing done with their own accord. Large numbers of persons were newly recruited during these few years, in every division, adding to the colossal cost. People ask why the airline is making losses when most of the routes/flights are operated with very high passenger numbers.

A Gen. Manager was appointed for Training, who worked directly for “Nil Balakaya” promoting charity with company money. This is the same Primal De Silva (cabin crew union leader) who walked away with his cabin crew calling for an industrial dispute leaving the aircraft in Zurich airport, during the Emirates time.

In Commercial division too a string of Gen. Managers were appointed, just before the election, with the intention of taking the complete control of the revenues and processes under the CEO. Most of these General Managers were the same lot who left Sri Lankan and followed then CEO, Peter Hill to Oman Air when the Rajapakse regime took over Sri Lankan, and left Oman Air too when Peter Hill was asked to leave that airline.

Also a woman, who was asked to leave the company due to an illicit relationship, in the past and a close relation of the Chairman Nishantha Wickremasinge, was called in as a senior consultant. The same Ms. Gunesekera is now influencing the senior management to promote and protect, only her close friends and her boys.

With an excellent IT team in house, the CEO decided to hand over the credit card sales division (internet bookings) to an outside party, on commission basis to share a fat Rs.6-8 million a month. No one was allowed to differ or question this decision. In a similar deal, all cargo space in Mihin Air was given to one freight agent on a profit share basis by this CEO. These are just a few things that need to be seriously looked at and investigated.

The Company’s Head of World Sales is the same person who headed the election campaign on paid leave for Mr. Sajin Vass Gunawarden in Ambalangoda.

According to the cargo trade information the cargo division is in total disarray, unable to distribute the transit cargo loads brought in from rest of the countries. The Head of cargo is recruited secretly and politically from a Sales Agent, with no real airline operation experience. Along with the old run-down cargo aero-plane registered in Colombo also with a profit share of the family and senior management.

The on board duty free with a USD 70 million turn over annually, was given out to a Canadian party by the Chairman, on a profit share basis. It is also known the Chairman is paid a huge house rental by the company, and recently bought himself the second official vehicle at the cost of the company.

A large number of new recruits in all departments for non-essential areas in the company has a staggering cost attached. These are some of the reasons why the National carrier is making such a huge loss and with unprofessional approach at the top in dealing on day to day matters, the airline is not only losing revenue but the esteem and the respect had since Air Lanka days. This down fall is only due to the mismanagement of the ruling family, their friends, their appointees and not the fault of the airline or its hard working dedicated people.