Sri Lanka’s flag carrier, SriLankan Airlines expects a fleet replacement between 2031 and 2032, according to SriLankan Airlines CEO Vipul Misra, as global carriers such as Qatar Airways have retired the last of its A330 passenger jets ahead of schedule, due to rising fuel costs and reduced flight demand amidst the Middle East conflict.

“The fleet needs to be renewed. These aircrafts are not manufactured anymore, unfortunately. So you have to switch into newer aircrafts, going into the next decade in 2031–2032. We really need to act now, to ensure that we get aircrafts then.”

Misra, speaking to Ada Derana in a recent interview, commented on the schedule for fleet renewal in response to a question raised on the growing consensus of foreign passengers noting the timeworn nature of the passenger jets.

“On safety, considering that our fleet is ageing – out of all the airlines that you mentioned – we have a 100% safety record,” Misra said.

According to a Reuters report published in September, Qatar Airways’ decision to retire the last of its A330 fleet was an early sign of the impact of the doubling of jet fuel prices this year, on the aviation industry.

Misra, explaining the replacement of the fleet said that there is no need for significant capital injections, at present. He said that the carrier’s focus now is on orienting the Board of Directors, government, Civil Aviation Authority and Airport and Aviation Services on fleet renewal.

Expanding on the comment with regards to capital injections, Misra explained that SriLankan may not have to raise capital to purchase passenger jets, as it may only have to earn enough to cover the expense of the monthly lease, and other operational costs linked to each passenger jet.

“As far as the capital part is concerned, you don’t need that capital in the way the aircraft acquisition works with the airlines in the current scheme of things. We lease aircrafts, we don’t buy them. If your commercial strategy is solid enough to say: ‘Bring in an aircraft, it’ll earn more than its lease rental, and the direct operating cost on the aircraft which consists of maintenance costs, salaries, IT, infrastructure, and other operational costs on the aircrafts. As long as the aircraft is making more money than that, it is opening up new routes for us.’”

He further noted that SriLankan has placed procurement requests for two wide bodies; both of which are A330 passenger jets, although A350 passenger jets would have been more ideal for purchase.

“We have already put in a request for two wide bodies 330. So currently it’s 330 that is in discussion. [The] 350 would be an ideal world scenario for us as well. But yes, that’s a very touchy topic.”

With the State-owned-entity facing restructuring following the guidance and recommendations provided by a government appointed expert committee, the present administration has diverged from the previous administration’s proposed plan of selling a 51% controlling stake to a strategic private sector investor, and instead seeks to turn the loss-making State-owned-entity into a public-private-partnership (PPP) venture.

Misra further noted that the carrier has shelved other opportunities within the carrier’s business for later, citing the need to focus on defending its turf, as the aviation industry as a whole undergoes turbulence, due to the ongoing geopolitical conflict and subsequent increase in fuel prices.

“We were looking at certain projects which were very heavy on the IT side; renewing a lot of our ground services, renewing certain commercial softwares and certain commercial strategies. But not at this hour. At this hour we have to defend our fort. We have to defend our keeps.”

“All the non-essential projects are as we speak now being put on hold for now. We are trying to optimise whatever best we can do to ensure our network is protected, our passengers get safe travel across our network, and our revenues are at a point where we are sustainable enough.”

“It is just going back to the basics again and shelving things for the future at least a quarter down the line to ensure that when it is realistic – the fuel prices are good enough and the situation is realistic enough – to implement those projects.”