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Sri Lankan aviation: A review of 2009 and outlook for 2010

19th February, 2010

Sri Lanka’s aviation industry has suffered on several fronts in recent years, with its hub role to India diminished by that country's liberalisation of airline market access with its key trading partners, coupled with a major downturn in international tourism. Major policy and strategic changes in the aviation sector are now occurring, spearheaded by the impending full renationalisation of SriLankan Airlines, and development of a second international airport. Both these developments reflect Sri Lankan aviation's streamlined future role: supporting the national tourism industry, which has improved prospects thanks to the cessation of the long-running civil war in mid-2009. [3426 words]

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This report contains the following subheadings:

  • Scarred SriLankan back into the government's arms
  • Dawn of peace should translate into higher growth
  • Recovery of Sri Lankan tourism industry central for growth of SriLankan Airlines
  • SriLankan cutting costs
  • In first phase of fleet modernisation programme
  • Codeshare and interline partners assisted growth in 2009
  • Mihin Lanka still to overcome its challenges
  • Foreign carriers slowly return to Sri Lanka
  • Colombo Airport outlook improves on peace
  • Construction of Sri Lanka‚Äôs 2nd international airport commenced
  • Outlook: 2010 a stabilisation year, but no time for complacency

This report contains the following charts and tables:

  • SriLankan Airlines net profit/loss (USD, mill): 1QFY2008/09 to 4QFY2008/09
  • Key Sri Lanka data: 2008 World Bank Data
  • Sri Lanka tourist arrivals: Dec-2008 to Dec-2009
  • SriLankan Airlines fleet: Week commencing 18-Jan-2010
  • SriLankan Airlines route changes: Winter Programme 2009/10
  • SriLankan Airlines route map: Jan-2010
  • Mihin Lanka route map: Jan-2010
  • Capacity breakdown (seats per week as % of total) from Sri Lanka by market
  • Colombo Bandaranaike International Airport passenger numbers and passenger numbers growth: Sep-2008 to Sep-2009
  • Top nine cargo volumes at Colombo Bandaranaike International Airport by carrier: Dec-2009
  • Map of upcoming Hambantota International Airport