‘Frexit’ for SriLankan Airlines

  • National carrier suspends flights to French capital Paris and Germany’s Frankfurt in winter
  • Airline’s statement says Government has made it clear that it will no longer fund continuing losses

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SriLankan Airlines announced yesterday it would be suspending its operations to Paris and Frankfurt from winter 2016.

Accordingly, the last flights between Frankfurt and Colombo (UL 553/554) will be operated on 30 October, while UL 563/564 of 6 November will conclude operations between Paris and Colombo.

The National Carrier said the Government has made it clear that it will no longer fund continuing losses. Airline sources said that the route network is being continuously evaluated in the context of changing market dynamics in order to maximise on sustainable routes which bring in more contribution towards the bottom line.

While the drop in fuel prices has contributed to the airline’s improved performance, this benefit has been significantly eroded with the airline’s revenues declining for the F/Y ending 2015/16 compared to the previous year.

Addition of capacity to the Colombo market particularly by Middle Eastern carriers, accompanied by a drop in airfares in European markets has seen the contribution of the European network drop in comparison to the other routes. This has been further exacerbated by the depreciation of the euro against the dollar. Airline sources further stated that there were no short-term signs of recovery in yields.

SriLankan operates daily flights to both Doha and Abu Dhabi and has a strong code share relationship with Etihad and Qatar through which it will continue  to provide onward connectivity to the European destinations it has been serving via Paris and Frankfurt.

London will remain the airline’s gateway to Europe, where the Airline has deployed its state-of-the-art A330-300 fleet for daily non-stop operations, providing a greater comfort and an enhanced flying experience to its passengers.

The Indian Sub-continent, the Middle East and the Far East will remain SriLankan’s focal markets, where the Airline will continue to explore its potential for expansion.

Source : http://www.ft.lk/article/551361/%E2%80%98Frexit–for-SriLankan-Airlines#sthash.jvXwAxaj.dpuf

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