• Plans to increase fleet from 16 to 18 aircraft by July
• Leasing agreements with Orix Aviation and Aergo Capital part of expansion strategy
• Govt. seeks foreign investor to alleviate airline’s financial burden amidst operating profit

Amidst the ongoing restructuring drive, State-owned National Carrier SriLankan Airlines has revealed plans to expand its fleet of aircraft from the current figure of 16 to 21 by the end of the year. 

Speaking to The Sunday Morning Business, SriLankan Airlines Chairman Ashok Pathirage revealed that two aircraft would be added to the current fleet of 16 by the end of July, thereby increasing the total fleet to 18 aircraft.

“Currently we are operating with a fleet of 16 aircraft. We are looking to add more; it will be 18 by next month,” he stated.

Commenting further, he stated that the plan was to increase the total number of aircraft in its fleet to 21 by the end of 2024. In April, it was announced that SriLankan Airlines would be leasing four wide-body aircraft on operating leases from two suppliers from Ireland – Orix Aviation and Aergo Capital.

“Under these contracts, Orix Aviation will provide two aircraft on a monthly lease of $ 360,000 for six years, while Aergo Capital will lease two aircraft on a monthly fee of $ 365,000 for eight years,” Cabinet Spokesman Minister Dr. Bandula Gunawardana said after Cabinet approval was given for the move.

SriLankan Airlines announced in early 2022 that it had issued four Requests for Proposals (RFPs) to lease up to 21 aircraft to support its long-term business strategy. However, this decision was heavily criticised by the public in light of the economic crisis faced by the country. 

Thereafter, in December 2022, the Cabinet granted approval for SriLankan Airlines to lease 10 aircraft. Subsequently RFPs were called in December 2022 for five second-hand A320s and five second-hand A330s.

Currently, the Government is seeking an investor for the cash-strapped airline, which, though running at an operating profit, is saddled with a huge debt which the authorities hope to absorb with the entry of a foreign investor.

Accordingly, Requests for Qualifications (RFQs) have been received from AirAsia Consulting Sdn. Bhd, Dharshaan Elite Investment Holding Ltd., Fits Aviation Ltd., Sherisha Technologies Ltd., Treasure Republic Guardians Ltd., and Hayleys PLC to purchase the Treasury’s stake in the airline.