Globally, the airline industry faces its gravest crisis in the modern times, due to COVID-19 pandemic, and some airlines are grounding their fleet either partially or completely, discontinuing all non-essential business operations and sending staff on compulsory unpaid leave or imposing salary cuts to minimize costs and maintain their position as viable business entities. This is a situation that the air transport industry has never faced before and is placing unprecedented stress on the financial viability of many airlines and the economies of the countries in general.
For this reason, the management of SriLankan Airlines has already taken measures to preserve the liquidity of the National Carrier by negotiating deferred payment plans and deductions with Airline’s key suppliers. Whilst doing so, the Airline is continuously looking at creating new business opportunities whilst focusing on cost saving measures to improve liquidity.
These measures include mandatory salary reductions from the staff starting from 2.5% to 25% for a period of three months, freezing all the salary increments to be implemented in the year 2020, and other initiatives including temporarily terminating operations from 8th to 21st April, 2020 with the exception of cargo services which have a direct impact in saving costs.
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