Comments on: The re-nationalisation of SriLankan Airlines and the follies of State enterprise https://groundviews.org/2016/05/09/the-re-nationalisation-of-srilankan-airlines-and-the-follies-of-state-enterprise/?utm_source=rss&utm_medium=rss&utm_campaign=the-re-nationalisation-of-srilankan-airlines-and-the-follies-of-state-enterprise Journalism for Citizens Tue, 24 May 2016 16:45:00 +0000 hourly 1 https://wordpress.org/?v=6.4.1 By: PunaniDeSilva https://groundviews.org/2016/05/09/the-re-nationalisation-of-srilankan-airlines-and-the-follies-of-state-enterprise/#comment-60820 Tue, 24 May 2016 16:45:00 +0000 http://groundviews.org/?p=19551#comment-60820 In reply to Keynes!.

As long as it’s private capital and the taxpayers don’t have to pick up the tab, then it’s the problem of Kingfisher’s investors and stakeholders. Failure is an essential feature of a competitive free-market system.

]]> By: Keynes! https://groundviews.org/2016/05/09/the-re-nationalisation-of-srilankan-airlines-and-the-follies-of-state-enterprise/#comment-60797 Tue, 17 May 2016 09:37:00 +0000 http://groundviews.org/?p=19551#comment-60797 Ravi,

Advocata claims to be “dedicated to economic development through free-markets.” Is Advocata a libertarian free-market think tank?

Kingfisher Airlines was a private airline. They failed. What about the billions of public money burnt by such private sector ventures?

]]> By: Appu Dasa https://groundviews.org/2016/05/09/the-re-nationalisation-of-srilankan-airlines-and-the-follies-of-state-enterprise/#comment-60780 Wed, 11 May 2016 09:44:00 +0000 http://groundviews.org/?p=19551#comment-60780 If recession in Europe is the major cause, then how is it that Emirates their management partner from 1998 to 2008 has made over One Billion Dollars profit in 2015/16 while Sri Lankan Airlines has lost almost 8.9 Billion LKR as per the press reports. The fault as far as i can see is not in the market place but in the core of the airline of Revenue Management comprising pricing and seat management. Also if you look at Emirates, today bulk of their revenue comes from digital marketing and messaging marketing platforms. In Europe no longer are the Tour Operators able to control leisure market because today with smart phones and tabs one can buy a air ticket, buy the hotel accommodation and related transport. But if you continue to rely on the traditional model then you are doomed. With an ASK of almost 17 Billion, they could have bridged the $60 million gap easily. You need strategic direction change in the commercial operations where today airline do downward integration of the hospitality part to keep core control. Unless the airline change strategies, look to optimizing the ASK then no light at end of tunnel. Difficult to understand how UL lost so much money when from China where in 2011 only 13,000 tourists came, in 2015 over 215,000 came more than 1000% increase. As they say those who cannot dance blame to ground saying it is uneven. The truth is this airline can be turned around by 2016/17 provided the strategic directions in commercial change. There are some who say that the staff are too many, almost 360 per aircraft. But if if you look at the salaries of almost 80% of them then it is a lesser cost than say European airline having about 120 staff per aircraft. So the high number of staff is not an issue at all.

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