IT, airport, cargo and catering divisions all set for growth

Dubai, 19th October 2004:  Following the announcement of a near doubling of profits for the year 2003/2004, SriLankan Airlines is continuing its staged growth in all areas. Airline management has revealed plans to expand IT capabilities, airport facilities and catering and cargo divisions, as well as bringing in additional capacity in its fleet and adding new destinations.

A net profit after tax of Rs. 4,555.14 million (US$44 million) was reported by the airline and its SriLankan Catering Services subsidiary, an increase of 94.97 per cent over the previous financial year. This increase was attributed in part to SriLankan's dynamic expansion on Indian routes.

Total operating revenue rose 24.6 per cent, while passenger numbers increased by 14.3 per cent to 2.06 million. Meanwhile, the airline fleet expanded to 17 with the acquisition of two A340s, two A320s, another Antonov AN12F freighter and a Cessna Caravan floatplane.

According to CEO Peter Hill, while the airline had achieved many of its goals during the past year, there was more to come in 2004/5 to meet a projected 28 per cent revenue growth.

He said: "The addition of China to our network will be a landmark, while we will continue expansion in to India with the launch of our eleventh destination, Ahmedabad.

"The successful launch of our domestic air taxi service will be followed up with more destinations and the acquisition of two more amphibious aircraft, while we will also add to our Airbus fleet in the coming year."

On the ground, Hill said the final touches were being made to a new business class lounge at Colombo airport, scheduled to open by year end, while a new US$25 million flight kitchen will be launched in September 2005, quadrupling current capacity.

The cargo centre will also double capacity in the coming year - while a new all-freight service to China will begin this winter.

"Equally exciting are the developments by our IT division, which is fine-tuning every aspect of a project to introduce e-ticketing with a fully automated Internet booking engine for SriLankan Airlines," he said.

"Our website at www.srilankan.aero is constantly being updated, and customers can already pre-order duty-free items or meals in business class, while additional features in the coming year will include a new generation cargo system."

Meanwhile, in the Middle East, Hill said the airline was committed to widening its network to offer convenient links between the region and south Asia, as well as farther afield.

"We are now offering daily connections to 10 destinations in India via Colombo, as well as providing a gateway in to the Maldives for leisure travellers - while the promotion of Sri Lanka itself as a holiday destination is reaping rewards with both expatriates and Arabs discovering the wide range of attractions on the island."

-Ends-

Editors' notes
SriLankan Airlines was created in April 1998 when Air Lanka, was privatised following the establishment of a strategic partnership with Dubai-based Emirates Airline. The agreement saw Emirates take a 40 per cent shareholding in the company and undertake a 10-year management agreement, during which time SriLankan has been established as southern Asia's preferred international carrier.

Following its transformation, SriLankan has won a string of international aviation awards including Best Airline in Central Asia from UK's Skytrax Research for four years in a row, (2001, 2002, 2003 and 2004), underlining its new reputation as a world-class carrier.

In 2003, SriLankan was voted as having the friendliest cabin crew by Skytrax, and also won the award for Best In-flight Entertainment (for a fleet size of 20 or less) at the annual World Airline Entertainment Association's Avion awards in the USA. 

For further information:
For media enquiries:
Kirstie Hepburn / Fiona Swaffield
Strategic Solutions for SriLankan Airlines in Arabia
Tel: +971 4 3915390,
email media@strategicsolutionsonline.com
 
For airline information: www.srilankan.aero
 
Holiday information: www.srilankan-holidays.com

© Press Release 2004