Cabinet approves lease of cargo plane for SriLankan

Wednesday, 17 March 2021 00:22 - - {{hitsCtrl.values.hits}}

Green-lights strategic change to shift to more cargo routes from passenger flights

Cabinet has given approval for SriLankan Airlines to lease a new aircraft to expand its cargo operations and tap into new industry opportunities created by COVID-19. Cabinet Spokesman Minister Keheliya Rambukwella told reporters that Cabinet had approved a proposal submitted by Tourism Minister Prasanna Ranatunga to procure a new aircraft so the National Carrier could expand its cargo operations.

“SriLankan Airlines currently has freight operations to 26 destinations. Considering the present market changes, it has become a good opportunity for companies to enter the cargo transport industry,” Rambukwella said.

Paying attention to the growth potential for cargo, the SriLankan Airlines company structure is also to be strategically changed to take advantage of this opportunity, the Minister added.

The Cabinet of Ministers granted approval for SriLankan Airlines to obtain an aircraft for cargo transport on lease subject to international competitive procurement methodology.

The Cabinet paper had pointed out the fleet of SriLankan comprised a number of economical narrow body aircraft as before the pandemic its main task was passenger transport. However, this led to underutilisation of cargo transport potential due to lack of suitable aircraft.

The document also pointed out that due to the pandemic most airlines were diversifying heavily into cargo transport to reduce losses and remain competitive.

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