Annual Report 2010 - Ministry of Finance and Planning

4 | State Owned Enterprises (SOE)Sri Lankan Airlines Ltd(SLA)In 2010 SLA showed signs of recoveryfrom financial downturn despitethe Airline carrying only 2.6 millionpassengers in 2009/10, a reductionof 6 percent in comparison to theprevious year. Passenger revenue ofthe SLA also decreased by 15 percentduring the year, due to the reductionin capacity. However SLA was ableearn a gross profit of Rs. 320 millionin 2010 as against the gross loss ofRs. 3,308 million incurred in 2009 dueto the rationalization of operatingexpenditure.SLA presently flies to 30 destinationsin 20 countries across Asia, the MiddleEast and Europe. SLA continued tomodernize and expand its fleet ofaircrafts with the introduction of oneAirbus A320-200 narrow-body aircraftin July 2009 and one wide-body A320-200 Air craft in the second quarter of2010. SLA completed the modernizationof its narrow-body fleet with thedelivery of the narrow-body aircraftduring the year. At the end of the yearSri Lankan had a fleet of 12 Aircrafts.The corporate strategy of the airline isto expand the operational fleet with 30modern aircrafts by 2020 to expand itsnetwork to 50 destinations globally.As per the 5 year businessPlan of SLA(2010/11 – 2014/15)strategic business units, Sri LankanEngineering & Maintenance andSri Lankan Airport Services willbe converted to fully ownedsubsidiaries of the SLA enablingthe two businesses to raise capitaland to realize their full potential,while being service partners tothe airline. A MOU also will besigned between AASL and SLA inthe first quarter of 2011 grantingsole and exclusive rights forGround Handling and Catering atthe Bandaranayake InternationalAirport for a period of five yearsto SLA.During the second quarter of theyear the Government acquired 43.63percent of Sri Lankan shares fromEmirates increasing the governmentstake at SLA up to 94.6 percent.Table 4.23 > Key Performance Indicators of Sri Lankan Airlines LtdUnits 2005/06 2006/07 2007/08 2008/09 2009/10Revenue Rs.Mn 61,160 67,964 79,128 73,298 62,364Total Expenditure Rs.Mn 61,955 67,280 74,631 76,606 62,044Gross profit Rs.Mn 1,173 7,652 7,009 (3,308) 320Net profit before Tax Rs.Mn 795 684 4,497 (9,269) (2,674)Cost of Employment Rs.Mn 9,370 7,867 11,425 10,135 9,168Capital Expenditure Rs.Mn 5,893 6,305 11,025 7,913 3,977Non Current Assets Rs.Mn 16,137 16,509 15,730 19,333 28,532Current Assets Rs.Mn 21,867 21,347 32,210 15,008 15,911Non Current Liabilities Rs.Mn 1,407 1,801 3,269 3,099 12,444Current Liabilities Rs.Mn 25,485 25,006 29,135 25,012 28,400Equity as at the end of the year Rs.Mn 11,111 11,108 15,536 6,230 3,598No of Employees Nos 5,395 5,272 5,113 4,837 4,614Employment Cost per employee Rs.Mn 1.74 1.49 2.23 2.10 1.97Source: Sri Lankan Airlines Ltd226