Loss-making national carrier Sri Lankan Airlines has signed a provisional deal with Airbus worth $1.3 billion to buy six A330-300 and four A350-900 aircraft between 2014 and 2023 to replace ageing aircraft, the state-run firm's CEO told Reuters. The airline, seeking to modernise its fleet to cut fuel costs, will opt for Rolls-Royce Plc engines and use a lease-back arrangement to conserve cash, Chief Executive Officer Kapila Chandrasena said in an interview.
"The total cost altogether is going to be around $1.3 billion. But deliveries are progressively from 2014 to 2023 on a staggered basis," he said. The carrier signed a memorandum of understanding on the purchase with Airbus last Friday, he said. Sri Lankan Airlines now operates with a 22-aircraft fleet including seven A320-200s, seven A330-300s, six A340-300s and two Twin Otters.
Chandrasena said the national carrier needs to replace all six A340-300s with A330-300 aircraft and all seven A330-300s with A350-900s. Sri Lankan, which had been managed by Dubai's Emirates Airline for a decade until 2008, aims to achieve a modern and fuel efficient twin-engine fleet by 2023.
The A340 has lost favour with airlines due to the cost of running four engines in an era of high fuel prices. Airlines are switching to lightweight new-technology airplanes such as the carbon-fibre A350 and Boeing Co's 787 Dreamliner, but sales of the older A330 have held up better than expected due to its availability and competitive pricing, aerospace analysts say. Chandrasena said the airlines considered offers by both Airbus and Boeing.
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