SriLankan Airlines to get 4 wide-body aircraft on lease

 Cabinet Co-Spokesman and Minister Bandula Gunawardena

• Cabinet nod to get A330 wide-body aircraft on monitoring lease facilities, along with an additional aircraft
• Ireland-based ORIX Aviation to provide two aircraft on a monthly lease of 
• $ 360,000 for 6 years; Aergo Capital Ltd., will lease two aircraft for a monthly fee of $ 365,000 for 8 eight years
• Cabinet Co-Spokesman and Minister Bandula Gunawardena says sale of SriLankan Airlines is easier said than done

By Charumini De Silva

Up for sale national carrier, SriLankan Airlines will get four A330 wide-body aircraft from Ireland-based ORIX Aviation and Aergo Capital Ltd., on monitoring lease facilities, along with an additional aircraft. 

The move follows a decision by the Cabinet of Ministers at its meeting held on Monday based on the recommendations of the Technical Evaluation Committee (TEC) and the Standing Procurement Committee.

Cabinet Co-Spokesman and Minister Bandula Gunawardena told the media yesterday the approved contracts include the lease of two aircraft from ORIX Aviation and two aircraft from Aergo Capital Ltd. 

“Under these contracts, ORIX Aviation will provide two aircraft on a monthly lease of $ 360,000 for six years, whilst Aergo Capital Ltd., will lease two aircraft for a monthly fee of $ 365,000, spanning eight years,” he said at the post-Cabinet meeting media briefing held yesterday.

The proposal to this effect submitted by Ports, Shipping and Aviation Minister Nimal Siripala De Silva was approved by the Cabinet of Ministers at its meeting on Monday.

On 26 February, SriLankan Airlines Chairman Ashok Pathirage disclosed that the airline has contracted for three A320s, one of which is already received. Additionally, the airline has received offers for six A330s and hopes of finalising these acquisitions by the end of the year.

He said the fleet expansion of the national carrier remains an immediate focus as the current fleet consists of 17 aircraft, of which three are grounded.

Previously, the Cabinet of Ministers approved the acquisition of two aircraft for SriLankan Airlines under an operational lease scheme during their meeting held on 18 March.

Justifying the decision, Gunawardena said these aircraft leases expect to facilitate the seamless operation of services of the national carrier.

“The sale of SriLankan Airlines is easier said than done. It is an extremely complex procedure involved in selling it in actual terms. The deal must be viable for both the Government and the investor. None of the parties will agree if it is not beneficial for them. Thus, the lease will allow the airline to continue operations till a deal is reached in the interim,” he explained the rationale for leasing aircraft amid the Government extending the tender to sell the airline to investors.

On 5 March, Aviation Minister De Silva said the Treasury would absorb $ 512 million of debt owed by SriLankan Airlines to make the national carrier more attractive to prospective investors whilst extending the deadline for Express of Interest (EoIs) till 22 April 2024.