Abstract

The case is about SriLankan Airlines (SLA), Sri Lanka's national carrier. It highlights the highs and lows faced by the airline since its inception. In an effort to improve SLA's performance and infuse management expertise, the Sri Lankan Government sold 40% of its stake to Emirates Airlines in 1998. After a devastating attack on its fleet, SLA undertook a series of initiatives which were responsible for its turnaround by the year 2003-04. The case describes initiatives taken by SLA to help build its business and encourage tourism after the tsunami disaster in 2004. The case also explains the challenges SLA is likely to face in the future due to rising jet fuel prices and competition from domestic low cost carriers and other international airlines.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Appreciate the challenges faced by an
• airliner operating in a politically unstable environment
• Understand the methods used by the management of SLA to turnaround the airline
• Understand the impact of privatization of government-owned entities in developing economies
• Understand the symbiotic relationship between the Government and a national carrier, especially in times of crisis.

Keywords

SriLankan Airlines (SLA), sla, wttc, Bounce Back Sri Lanka, Privatization, Turnaround, Restructuring, Emirates Airlines, Skywards Frequent Flier Program, Tsunami disaster, World Tourism and Travel Council (WTTC), Economic risks, Fuel price hedging, Hurricane Katrina and Rita, Political risks, Codesharing, Colombo