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SriLankan Airlines’ new plan to be like Emirates

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In a bid to turn the loss making airline into a profitable venture, SriLankan Airlines has come up with a five-year strategic plan. Part of the plan will see them emulating industry leader Emirates, with a new hub and spoke network model.

In a statement SriLankan Airlines said:

“SriLankan Airlines has formulated a new five-year Strategic Business Plan for the period 2019-24 with the objective of transforming itself into a financially viable organization airline group with high brand visibility and a global reputation for excellence,”

They went on to say that the national carrier had an ‘enormous contribution’ to make to the GDP of Sri Lanka, including import, export and tourism.

What is SriLankan Airlines planning?

Their latest five year strategic business plan includes major development of the Colombo hub to make it a key connecting point for a variety of markets. SriLankan are targeting passengers connecting through Africa, Asia and the Middle East, in a bid to grow as big as rival airline Emirates.

As a member of Oneworld, SriLankan are hoping to leverage their membership to develop their network for the future. In contrast to their current point to point model, they plan to work on more of a hub and spoke model to develop new opportunities.

The plan is to be presented to the Government of Sri Lanka for approval shortly.

New routes and fleet

Currently, SriLankan Airlines operate with a fleet of 27 Airbus aircraft. Specifically, these are 13 A320 family aircraft and 14 A330s. As part of the five year plan, the carrier intends to select new fleet inclusions which match the requirement of their developing route network. They have also said they want to reconfigure their existing fleet to offer an enhanced business class service.

Already, the airline has announced a fifth weekly service between Colombo and Tokyo from July onwards, using its Airbus A330-300s. If the plan is formalized by the government, we expect to see many more new route announcements over the coming weeks.

As well as routes and fleet, the plan specifies that it will:

  • Enhance the customer experience by improving customer-centricity throughout the airline
  • Adopt best practices to improve productivity
  • Grow online sales to reach a wider market in a more cost effective manner
  • Improve employee engagement
  • Implement a competitive cost structure through a greater cost consciousness throughout the company

The plan is being headed up by Group Chief Executive Officer Vipula Gunatilleka, who was appointed to the airline in mid-2018. Prior to joining SriLankan, Gunatilleka was a board member and CFO of TAAG Angola. There, he worked closely with Emirates while they were managing TAAG, so no doubt knows his hub and spoke business very well already.

A loss-making airline

The airline is undergoing a major shakeup with a view to turning a profit. Over the last nine months, the carrier’s net loss more than doubled to a total loss of $135m. It is hoped that the five year strategic plan being tabled today will transform the airline by 2024.

 

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Any WOW Air reservation may not materialize: Airline has major problems

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“Bummer that WOW Air is potentially going under – had a very flawless experience with them. But does this mean fewer tourists in Iceland?”, a disappointed passenger posted to twitter.

Icelandic tourism professionals did not yet comment on the hopeless sounding situation of Wow Air.  The airline was founded by an Icelandic entrepreneur, Skúli Mogensen. It first flew to Paris on 31 May 2012 and later that year took over an existing airline, Iceland Express.

WOW Air based in Iceland is fighting for survival. On Sunday evening rival IcelandAir, the potential rescuer announced  that Icelandair Group has decided that its possible involvement in WOW air’s operations, as announced on 20 March 2019, will not materialize. Therefore, all discussions between the parties have been canceled.

Today Indigo Partners Will Not be Investing in WOW Air According to a recent statement made by the company, Indigo will not be negotiating further with WOW Air and instead will be opening talks with Icelandair Group.

The 9:30am flight from London Gatwick to Reykjavik in Iceland was canceled this morning at short notice, with more flights canceled later in the day according to its website.

Wow Air then issued its own statement saying: A majority of WOW air Bond Holders and other creditors of WOW air are in advance discussions with the aim of reaching an agreement on a voluntary restructuring including an agreement of converting current debt into equity and fund the company towards long term sustainability. Further information will be given tomorrow.

Within hours, Wow Air started canceling flights – including the early morning trip from Reykjavik to Gatwick, due to leave at 6.20am on Monday. The return leg to the Icelandic capital, due to leave Gatwick at 9.30am, was also grounded.

Wow Air has also canceled trips from Reykjavik to Chicago and Pittsburgh on Monday, with links to Brussels and Barcelona grounded on Tuesday.

 

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Boeing 737 MAX’s disasters could impair global Artificial Intelligence development

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Two deadly crashes involving Boeing’s newest airplane in less than six months puts in jeopardy not only the credibility of the manufacturer, but also new technologies actively being pushed by the world’s top tech firms.

All Boeing 737 MAX 8 planes operated by global carriers were grounded earlier this month after an Ethiopian Airlines aircraft crashed shortly after take-off, taking a steep nosedive not far from Nairobi.

The fatal accident which claimed 157 lives followed a similar crash in Indonesia, which killed all 189 people on board in October.

The two crashes appear to have something in common. The crews of both aircraft reportedly struggled with the MAX 8 autopilot system which pointed the nose of the airplane down before the crash.

The implications of the deadly incidents are much bigger than aviation itself, according to Alessandro Bruno, an independent international affairs and aerospace industry analyst.

“I think this accident shows the limitations of artificial intelligence and it should convince Elon Musk and Tesla to slow down efforts to push down self-driving cars,” the expert said, highlighting that the latest crashes occurred due to software problems, not mechanical ones.

A recall of Boeing’s flagship planes, lawsuits from global air carriers and a fall in the manufacturer’s market value may undoubtedly result in the firm lagging behind Airbus, its key rival, according to international finance experts, who say that if this scandal is not ‘extinguished’ in time, it may trigger deep concerns over the entire sector of artificial intelligence and its credibility.

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Air crash experts: ‘Clear similarities’ between Ethiopian and Lion Air 737 MAX disasters

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French air crash investigators are saying that they have found “clear similarities” between last week’s Ethiopian Airlines crash and last October’s Lion Air disaster. Both 737 MAX aircraft plunged nose-first to their doom.

“During the verification process of the FDR (flight data recorder) data, clear similarities were noted by the investigation team between Ethiopian Airlines Flight 302 and Lion Air Flight 610, which will be the subject of further study during the investigation,” the BEA said in a statement.

Ethiopian Airlines Flight 302 nosedived into a field shortly after takeoff last Sunday, killing all 157 people on board. Lion Air Flight 610 plunged into the sea last October, killing all 189 passengers and crew.

In both cases, the 737 MAX’s MCAS system is suspected to be responsible. The system automatically makes adjustments to the tail angle to keep the plane level in flight. However, false sensor readings can repeatedly trigger the system, forcing the plane into a dive.

The BEA investigators found that the sensor readings in both flights were similar.

In the US, a group of engineers with the Federal Aviation Administration and Boeing claimed over the weekend that Boeing downplayed safety concerns surrounding the MCAS system in a bid to bring the 737 MAX to market before rival Airbus launched its own next-generation narrow body aircraft.

The engineers also claimed that the FAA delegated much of the 737 MAX’s safety testing to Boeing itself, and were content to trust the company’s conclusions. Other air safety regulators around the world then certified the MAX 8 based on the FAA’s thumbs up.

The US Department of Transportation is now investigating the FAA’s approval of the aircraft, the Wall Street Journal reported on Monday. Federal prosecutors have reportedly issued a subpoena to at least one person involved in the development of the 737 MAX.

The aircraft remains grounded worldwide after the Ethiopian Airlines disaster. The FAA has said it may take “months” for Boeing to apply the necessary software updates to rectify any problems with the MCAS system.

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Air crash experts: ‘Clear similarities’ between Ethiopian and Lion Air 737 MAX disasters

by

French air crash investigators are saying that they have found “clear similarities” between last week’s Ethiopian Airlines crash and last October’s Lion Air disaster. Both 737 MAX aircraft plunged nose-first to their doom.

“During the verification process of the FDR (flight data recorder) data, clear similarities were noted by the investigation team between Ethiopian Airlines Flight 302 and Lion Air Flight 610, which will be the subject of further study during the investigation,” the BEA said in a statement.

Ethiopian Airlines Flight 302 nosedived into a field shortly after takeoff last Sunday, killing all 157 people on board. Lion Air Flight 610 plunged into the sea last October, killing all 189 passengers and crew.

In both cases, the 737 MAX’s MCAS system is suspected to be responsible. The system automatically makes adjustments to the tail angle to keep the plane level in flight. However, false sensor readings can repeatedly trigger the system, forcing the plane into a dive.

The BEA investigators found that the sensor readings in both flights were similar.

In the US, a group of engineers with the Federal Aviation Administration and Boeing claimed over the weekend that Boeing downplayed safety concerns surrounding the MCAS system in a bid to bring the 737 MAX to market before rival Airbus launched its own next-generation narrow body aircraft.

The engineers also claimed that the FAA delegated much of the 737 MAX’s safety testing to Boeing itself, and were content to trust the company’s conclusions. Other air safety regulators around the world then certified the MAX 8 based on the FAA’s thumbs up.

The US Department of Transportation is now investigating the FAA’s approval of the aircraft, the Wall Street Journal reported on Monday. Federal prosecutors have reportedly issued a subpoena to at least one person involved in the development of the 737 MAX.

The aircraft remains grounded worldwide after the Ethiopian Airlines disaster. The FAA has said it may take “months” for Boeing to apply the necessary software updates to rectify any problems with the MCAS system.

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