Jacqueline-the new face for SriLankan
• Award-winning Sri Lankan carrier Srilankan Airlines, yesterday signed on board Bollywood actress Jacqueline Fernandez, as their brand ambassador, Indian media reported.
• The letter of agreement was exchanged between Srilankan Airlines Chairman Ajit Dias and Jacqueline Fernandez, at St. Regis Hotel, in Mumbai.
With this collaboration, the Srilankan Airlines brand continues to strengthen its presence in India, the agencies reported.
Commenting on the association, Jacqueline Fernandez had said it was an honour to be part of Srilankan Airlines:
“The brands heritage and ideology are depicted in its service and strong reputation, carried for many years.”
“Ever since I was a kid I had great memories travelling with this airline. I am quite excited about this opportunity to represent the brand from my country origin.”
OSL Take:
In 2008, when Emirates pulled out, the accumulated profit of SriLankan was Rs. 9.288 billion in that financial year.
From 2008 to 2015, when the Rajapaksa administration ran it, the loss for the seven years was Rs. 128.238 billion.
Shareholders equity which stood at Rs. 15.5 billion was Rs. 74.1 billion from 2008 to 2015.
Interest Bearing Liabilities (Bank and Financial Owings) which stood at Rs. 953.57 million was Rs 76,065.63 million.
Current assets of SriLankan (inventories, trade and other receivables, aircraft maintenance reserve, cash and bank balances) as at January 31, 2016 total US$ 368.58 million.
The current liabilities during the same period (trade and other payables, income tax payable, interest paying liabilities) total US$ 937.47 million.
In simple terms, the national carrier owes more than it owns. Its cash requirement from now till October is placed at US$ 187.47 million or Rs. 26,995.68 million.
Bank Loans
SriLankan Airlines has obtained facilities from a number of local banks and foreign concerns.
This includes the Bank of Ceylon, the People’s Bank, Standard Chartered Bank, Commercial Bank, Amana Bank, Air Lease Corporation and the Ceylon Petroleum Corporation (for fuel).
The total amount involved is US$ 518.35 million of which US$ 272.79 million still remains to be paid.
The Treasury has now agreed to issue letters of Comfort to Bank of Ceylon and the People’s Bank calling upon them to extend beyond March 31 the payment date as the equity required to repay these loans is not forthcoming.
The bleak mismanagement tale can take up valuable reader time hence, in short the unity government is trying to save the national carrier from “extinction” and the introduction of Jacqueline Fernandez as the brand ambassador for SriLankan Airlines is a valiant move to save what’s left.
OSL still believes that over the long haul, the national carrier will come back to profit, if proper management is given freedom to run its course with stringent controls and monitoring.
| Article Code : | VBS/AT/01082016/Z-5 |