Sri Lanka's cash-strapped national carrier said Wednesday it will pay a penalty for cancelling leases on four Airbus A350s, with official sources putting the figure at about $115 million. SriLankan Airlines chairman Ajith Dias said it cancelled four of the long-route planes from leasing giant AerCap that had been contracted by the former government.
Dias, who did not give a figure for the penalty, told reporters the planes were not required as the airline was focusing on more profitable short-haul flights. The move comes as the current government is in the process of finalising a partner to revive the loss-making carrier. Dias said the fate of another four A350s ordered for delivery after 2020 will have to be decided by the new investment partner, although the current government has said it wants the entire deal scrapped.
SriLankan pulled out of three leases on Tuesday after agreeing to pay $98 million, a government source involved in the transaction said. The airline also paid $17.7 million earlier this year to stop delivery of the fourth that had been due next year, the source said. "The penalty translates roughly to the lease rentals for 24 months for three aircraft that should have been delivered from this year," the source told AFP asking not to be named. "It was easier to cancel the fourth one because its delivery date was in late 2017."
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