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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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U.S. Travel welcomes Bernhardt DOI confirmation

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U.S. Travel President and CEO Roger Dow issued the following statement on the Senate confirmation of David Bernhardt as secretary of the U.S. Department of the Interior (DOI):

“The travel industry welcomes the Senate’s confirmation of David Bernhardt as secretary of the Department of the Interior.

“As an experienced leader of the agency, Secretary Bernhardt has a deep appreciation for why national parks are often called ‘America’s best idea,’ and we applaud his recent support of the John D. Dingell Jr. Conservation, Management, and Recreation Act. We look forward to working with the secretary to advance the preservation of our public lands and to continue our collaboration with DOI to establish a dedicated source of funding to tackle the $12 billion deferred maintenance backlog in the parks.

“In 2018, 318 million visitors spent billions in gateway communities, supporting hundreds of thousands of jobs. Communities across the country rely on well-maintained parks and robust visitation, and it is critically important that our parks are equipped to handle the millions of visitors who come to enjoy America’s parks.

“U.S. Travel is grateful for all the Department of the Interior does to support and protect our public lands, and we look forward to a continuation of the travel industry’s positive relationship with the agency under Secretary Bernhardt’s leadership.”

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55.9 million travelers: Passenger traffic in Portuguese airports up 5.8%

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Portuguese airports traffic increased by 6.2% in the first quarter of the year to over 11 million passengers, compared to the same period of 2018.

According to figures by Vinci Airports, which owns ANA – Aeroportos de Portugal, passenger traffic in Portuguese airports rose 5.8% in the past 12 months to 55.9 million passengers.

“In Portugal, traffic growth was particularly sharp in Faro (+12.3%) and Porto (+9.5%), reflecting the country’s continuous popularity amongst foreign tourists”, Vinci Airport said in a statement.

“At the Lisbon hub, traffic grew by 4.2%, despite the high base for comparison and the current capacity constraints”, the statement added.

The company also pointed out that there had been solid traffic growth (+6.4%) at the airports managed by Vinci Airports in the first quarter of 2019.

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US Travel: Pulling CBP staff to US-Mexico border can hurt legitimate international travel

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U.S. Travel Association Executive Vice President for Public Affairs and Policy Tori Barnes issued the following statement on Customs and Border Protection’s announcement that it will reassign agents from airports and other entry points to the U.S.-Mexico border:

“The administration rightly points out the importance of security, but we believe security priorities and economic priorities go hand in hand.

“In pursuing its objectives on the southern border, we urge the administration to keep other entry points appropriately staffed and effectively secured. Aside from concerns about migration and border security, it is an immutable fact: travel is trade, and the U.S. economy and jobs base enjoy many billions of dollars in beneficial impact from legitimate international business and leisure visitors to the United States.

“Immigration and visitation are two separate points on the policy spectrum, each important in its own right. The American travel community stands ready to work with the administration to advance policies that are beneficial to both security and prosperity.”

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U.S. Travel applauds introduction of JOLT Act

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Have you heard of the JOLT Act? JOLT stands for Jobs Originated through Launching Travel.

The Executive Vice President of Public Affairs and Policy for the U.S. Travel Association, Tori Barnes  issued a statement on the introduction of the Jobs Originated through Launching Travel (JOLT) Act of 2019:

“International inbound travel is central to America’s job growth: in 2018, international travel spending directly supported 1.2 million American jobs and $33.4 billion in wages. The JOLT Act will do just as its name implies—provide a ‘jolt’ to the American economy and workforce with critical enhancements to inbound travel, including measures to increase both the security and efficiency of the U.S. visa process.

“The Visa Waiver Program—which the bill would re-designate as the Secure Travel Partnership—is one of the most important tools for increasing secure travel to the United States. Renaming the program will more precisely reflect its value as a national security instrument, and other provisions in the legislation will further strengthen the program while facilitating the arrival of qualified international visitors who bolster America’s economy.

“U.S. Travel applauds Representatives Quigley and Rice for recognizing the role that secure, robust international inbound visitation plays in America’s economic and jobs growth, and we are eager to work with Congress to advance this important bill.”

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Wynn Resorts ends takeover talks with Australia’s Crown Resorts

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Wynn Resorts released the following statement today:

“Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction.”

Shares of Melbourne-based Crown spiked 21% in Sydney, after the Las Vegas Wynn Resorts had approached Crown Resorts about a 10 billion Australian dollar takeover.

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What airport is now busier than mega-hubs Frankfurt and Dallas Fort Worth?

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This airport has now become the world’s 12th busiest airport, moving up four places from the 16th spot in 2017. According to the preliminary world airport traffic rankings for 2018 released by the Airports Council International (ACI), it over took mega-hubs like Frankfurt, Dallas Forth Worth, Guangzhou and Istanbul Ataturk airports.

The four airports above the IGI Airport are Amsterdam Schiphol, Paris-Charles de Gaulle, Shanghai Pudong and Hong Kong, managing over 46 lakh passengers more than IGIA. The airport ranked busier than all these might surprise – it’s New Delhi’s Indira Gandhi International Airport (IGIA).

“India became the world’s third-largest aviation market in terms of passenger throughput, behind the US and China, in 2018. India’s move towards a more liberalized aviation market and the nation’s strengthening economic fundamentals have helped it become one of the fastest-growing markets with its traffic growing rapidly in a relatively short time,” read the statement by ACI.

The ACI’s World Airport Traffic Forecasts also predicts the country will represent the third largest aviation market in terms of passenger throughput after the US and China by 2020.

As per the rankings released by the ACI, the GMR-group-run airport has solidified its status as one of the fastest growing airports in the world for passenger traffic. Only Seoul’s Incheon International with 10 percent point growth was close to Delhi in terms of passenger growth. The Incheon International airport has secured the 16th place in 2018.

The ACI report said the IGI airport saw 69 million domestic and international flyers in 2018, which is 10.2 percent points higher than the combined passengers of 2017. Passenger traffic in advanced economies grew 5.2 percent while in emerging economies it rose 10.3 percent in 2017.

ACI World Director General-Angela Gittens said while strong competitive forces continue to drive innovation and improvements in efficiency and service for passengers, airports face the challenges of meeting the continuing global growth in demand for air services.

The ACI, founded in 1991, is the trade association of the world’s airports, currently serving 641 members operating from 1,953 airports across 176 countries.

“It is expected that rising incomes in emerging markets will help propel global traffic to new heights in the coming decades as new aviation hubs begin to overtake the more mature markets of Western Europe and North America,” ACI said.

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U.S. Department of Homeland Security McAleenan appointment: U.S. Travel Association issues statement

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U.S. Travel Association President and CEO Roger Dow issued the following statement on the announced appointment of Kevin K. McAleenan as acting secretary of the Department of Homeland Security:

“In Mr. McAleenan we have an ally with a full and complete understanding of both national security and the importance of facilitating cross-border trade, which includes travel.

“U.S. Travel has had the pleasure of engagement with Mr. McAleenan for over a decade, given his immediate past roles with Customs and Border Protection. The American travel community’s experience with Mr. McAleenan gives us every confidence that he is the right choice to lead DHS through these challenging times.

“On behalf of America’s travel industry, I look forward to a continued positive relationship with Mr. McAleenan and DHS, and look forward to seeing this critically important role filled on a long-term basis.”

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Boeing CEO: Safety is our responsibility, and we own it

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Boeing CEO Dennis A. Muilenburg issued the following statement in response to its 737 Max software, production:

As we work closely with customers and global regulators to return the 737 MAX to service, we continue to be driven by our enduring values, with a focus on safety, integrity and quality in all we do.

We now know that the recent Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents were caused by a chain of events, with a common chain link being erroneous activation of the aircraft’s MCAS function. We have the responsibility to eliminate this risk, and we know how to do it. As part of this effort, we’re making progress on the 737 MAX software update that will prevent accidents like these from ever happening again. Teams are working tirelessly, advancing and testing the software, conducting non-advocate reviews, and engaging regulators and customers worldwide as we proceed to final certification. I recently had the opportunity to experience the software update performing safely in action during a 737 MAX 7 demo flight.  We’re also finalizing new pilot training courses and supplementary educational material for our global MAX customers. This progress is the result of our comprehensive, disciplined approach and taking the time necessary to get it right.

As we continue to work through these steps, we’re adjusting the 737 production system temporarily to accommodate the pause in MAX deliveries, allowing us to prioritize additional resources to focus on software certification and returning the MAX to flight. We have decided to temporarily move from a production rate of 52 airplanes per month to 42 airplanes per month starting in mid-April.

At a production rate of 42 airplanes per month, the 737 program and related production teams will maintain their current employment levels while we continue to invest in the broader health and quality of our production system and supply chain.

We are coordinating closely with our customers as we work through plans to mitigate the impact of this adjustment. We will also work directly with our suppliers on their production plans to minimize operational disruption and financial impact of the production rate change.

In light of our commitment to continuous improvement and our determination to always make a safe industry even safer, I’ve asked the Boeing Board of Directors to establish a committee to review our company-wide policies and processes for the design and development of the airplanes we build.  The committee will confirm the effectiveness of our policies and processes for assuring the highest level of safety on the 737-MAX program, as well as our other airplane programs, and recommend improvements to our policies and procedures.

The committee members will be Adm. Edmund P. Giambastiani, Jr., (Ret.), former vice chairman, U.S. Joint Chiefs of Staff, who will serve as the committee’s chair; Robert A. Bradway, chairman and CEO of Amgen, Inc.; Lynn J. Good, chairman, president and CEO of the Duke Energy Corporation; and Edward M. Liddy, former chairman and CEO of the Allstate Corporation, all members of the company’s board. These individuals have been selected to serve on this committee because of their collective and extensive experiences that include leadership roles in corporate, regulated industries and government entities where safety and the safety of lives is paramount.

Safety is our responsibility, and we own it. When the MAX returns to the skies, we’ve promised our airline customers and their passengers and crews that it will be as safe as any airplane ever to fly. Our continued disciplined approach is the right decision for our employees, customers, supplier partners and other stakeholders as we work with global regulators and customers to return the 737 MAX fleet to service and deliver on our commitments to all of our stakeholders.

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ADI statement on circus lion attack in Ukraine

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Animal Defenders International (ADI) has urged Ukraine and other countries without bans on the use of animals in circuses to stop circus suffering after a lion attacked a trainer during a circus performance in the city of Lugansk.

 

ADI President Jan Creamer said: “Exploited for entertainment, animals in circuses endure a lifetime of suffering and abuse. It’s time for countries without bans in place to step up and stop animals and people being put in harm’s way.”

 

The attack is one of a growing catalogue of incidents involving circus animals around the world, highlighting the inherent animal welfare and human safety issues.

 

Studies of the use of wild animals in traveling circuses show that circuses cannot meet their physical or behavioral needs. Animals are confined in small spaces, deprived of physical and social needs, spending excessive amounts of time shut in transporters. These animals are often seen behaving abnormally; rocking, swaying, and pacing, all indicating that they are in distress and not coping with their environment. ADI’s video evidence has shown how these animals are forced to perform tricks through physical violence, fear, and intimidation.

 

The animal protection organization is currently in Guatemala helping enforce a ban on the use of animals in circuses, as it has done in both Bolivia and Peru, and now has 21 lions and tigers at its temporary rescue center. Eighteen of the big cats will be going to the new ADI Wildlife Sanctuary in South Africa. To support the rescue mission, donate here: https://donate.adiusa.org/guatemala/

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