UL struggles with unusable aircraft leased from Aercap

• A330-200 aircraft leased as part of Airbus cancellation deal in 2016 
• SriLankan says aircraft not suitable for current business model
• A330-200 was leased to European airline but payments defaulted 
• After aircraft returned to UL its engine fixed to another plane    
• Management denies responsibility, says working towards minimizing carrier losses

SriLankan Airlines yesterday said an Airbus A330-200 that was acquired in 2016 was grounded and its engine fixed to another aircraft after it was found that the aircraft did not fit the current business model of the National Carrier. 

The aircraft bears the serial number MSN-1008 and CAASL registration number 4R ALS and was leased by the airline in 2016 after the Government cancelled the leases for four new Airbus A350-900 aircraft by paying leasing company Aercap $98 million. As part of the cancellation the Government had also signed a lease for the A330-200 aircraft.   

“This aircraft was acquired in 2017 as part of the conditions agreed to between the previous management of the airline and aircraft lessor Aercap, as a settlement against the cancellation of the order of four new Airbus A350-900 aircraft.

However, the cabin configuration of this aircraft, which was manufactured in 2009, is not suitable for SriLankan Airlines’ operations, having many seats and minimum space between seats in its Business Class cabin. All other aircraft in the SriLankan Airlines fleet operate a two-class configuration of Business and Economy classes, with a particular standard of comfort in seating,” the airline said in a statement. 

The previous management therefore took a decision to lease this aircraft to a European airline. However, after some time, this European airline violated the lease agreement by defaulting on the lease payments. 

The lessee also did not fulfil its obligations under the lease contract to prepare the aircraft for the handover. The engineering team at SriLankan performed the required maintenance checks to make the aircraft ready to fly. 

The management is also exploring the possibility of sub-leasing this aircraft to a charter operator or to another airline. Until such time, the aircraft remains at BIA as part of the SriLankan fleet, although it is not in use due to the above-mentioned reasons, the statement added.  

“It is a standard practice in most airlines that various interchangeable parts or components such as the engines that are urgently required for an operational aircraft are taken out of aircraft that are not in immediate use, if such parts are not at the time in stock in the airline’s spare parts stores. SriLankan has removed one of the engines from this aircraft and fitted it to another aircraft as one of its engines is undergoing some maintenance work. These parts would be replaced prior to the aircraft being leased to another airline, once such a lease agreement is signed for the use of this aircraft.”

Issuing the statement the present management of SriLankan Airlines stressed that it was not involved in the decisions with regard to the ordering of the A350-900 aircraft, which took place in 2013; or the cancellation of the order in 2016; or of the acquisition of the A330-200 aircraft 4R ALS which is unsuitable for the airline’s present business model. 

“The management is attempting to optimise the usage and return on investment on this aircraft, as with any other asset of the airline. Management is also taking the necessary steps to recover the losses to the airline from the relevant parties.”