South India is an extended home base for Sri Lankan Airlines, the national carrier of Sri Lanka, which is all set to expand its operations in metros and tier-two cities in the region. As part of a move to accord thrust to the Asian market, the airline would increase both frequencies of operations and choices of destinations in India.
In an exclusive interview with The Hindu , Kapila Chandrasena, Director and Chief Executive Officer, Sri Lankan Airlines, said increasingly liberal aviation policies and opening of secondary cities was a welcome sign for the industry in India. “India is important due to the sheer scale of operations it offers our network, and the market is big enough to sustain any number of airlines.”
The airline despite incurring losses and curtailing frequency of operations in the European sector would increase frequencies to Delhi and Chennai while exploring the possibility of operations in tier-two cities, including Madurai. Mr. Chandrasena was here en route to Madurai to hold talks with stakeholders in exploring the potential of the temple city .
“Sizing up the Madurai market, we feel that the city has the right mix of passenger segments,” he said adding that the airline might look at operating turbo aircrafts with limited seating capacity at the initial stage. Responding to a query on how the operations would affect Tiruchi, the closest destination for travellers in south, he was optimistic that markets were big enough for unexplored segment.
With increased competition, low yield and poor capacity issues in European sector, the thrust of the aviation industry has now shifted to Asia in the form of new destinations, the CEO said. Noting that it was not a good time for the airline or any other airline he said the upward spiral of aviation fuel costs that comprised nearly 55 per cent of operating cost were to blame. Though times were tough for the aviation industry worldwide, Sri Lankan Airlines was keen on expansion plans as the carrier was pivotal to the country's development in the post-war scenario.
By increasing investment in the national carrier, President Mahinda Rajapaksa had envisaged a prominent role for aviation industry instrumental in targeting tourism growth, Mr.Chandrasena said.
Remarking that product differentiation and upgrade was the key to meeting competitions, he said upgrading aircraft, refurbishing interiors, and a la carte meals would be introduced to woo customers.
