Quest for permanent leadership in national carrier

At a time when the global aviation industry is facing a storm due to the war in the Middle East region, SriLankan Airlines (SLA) has been further stifled by the absence of permanent leadership.

The national carrier has been without a full-time CEO for almost a year, while its post of Chairmanship too has become vacant with the resignation of Sarath Ganegoda last month. The resignation came hot on the heels of exits by those heading the Board of Investment, the Ceylon Electricity Board, Airport and Aviation Services Ltd., and the Sri Lanka Transport Board, among others.

Due to the conflict in Iran, the aviation industry is facing its worst crisis since COVID-19. The crisis, resulting in airspace closures and threats to energy supplies in the Strait of Hormuz, has caused jet fuel prices to soar by up to 195%. As a result, airlines worldwide are facing soaring operational costs, and the SLA too has not been spared from the calamity. Navigating such a turbulent environment requires decisive and firm leadership at the top, which the crisis-ridden state entity has been deprived of.

The Government is in the process of finalising the selection of a CEO, and the final selection is expected to be presented for Cabinet approval. It is reported that after receiving over 200 applications, the Government has narrowed the final shortlist to four applicants – three foreigners and one local candidate.

The previous CEO of the airline was Richard Nuttall – a British national who steered the airline from 2022 before stepping down last year to assume the role of President of Philippine Airlines. Nuttall played a key role in managing the operations of the national airline amidst serious operational and financial challenges, coinciding with the COVID-19 pandemic as well as the 2022 economic crisis. Experts in the aviation industry criticised the Government for not renewing the contract of Nuttall, as his presence would have been hugely beneficial during the anticipated transformation and reform of the airline.

The circumstances that led to the exit of Ganegoda from the Chairmanship of the airline have not been officially disclosed. It was reported that he stepped down having completed his assigned responsibilities, including performance improvements. A key achievement was securing a 16% haircut in the restructuring of SLA Bonds. However, during his tenure, Ganegoda was subject to allegations of conflict of interest because of his employment as Executive Director with diversified blue chip Hayleys PLC, which has extensive interests in aviation.

There was also an incident of the newly acquired Airbus A330-200 aircraft being showcased via a low-altitude flyover from Colombo Port City to Panadura in 2025, with the objective of creating a feel-good cheer among gullible islanders as well as a grandiose media hype.

With regard to filling the vacant Chairmanship, reports have indicated that the Government is considering 84-year-old Peter Hill – who served as CEO of the SLA when it was under the control of Emirates. Whoever the eventual appointee may be, the interest of the national carrier would be best served by appointing a commercial administrator with proven credentials instead of appointing pilots, as some ignorant administrations did in the past.

The next SLA Chairman does not necessarily need to have prior experience in the aviation industry; however, he or she should ideally be an upright individual who exercises a firm and fair leadership style.