Financial Daily from THE HINDU group of publications
Sunday, Dec 22, 2002
Financial Daily from THE HINDU group of publications Sunday, Dec 22, 2002 |
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Industry & Economy
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Tourism Logistics - Interview `Peace may help Sri Lankan spread wings' Nina Varghese
Mr Daya Pelpola, Chairman
CHENNAI, Dec. 21 SRI Lanka is using the peace process to kick-start the economy and these initiatives are helping to attract investors especially in the infrastructure sector , according to Mr Daya Pelpola, Chairman Sri Lankan Airlines. He was here to attend the Chennai Fest and give the Sri Lankan perspective on tourism at the two-day exposition and debate. In an interview to Business Line, Mr Pelpola said that (because of ethnic strife) in the past there had been negative or no growth in the economy and tourism was seen as the quickest way to grow. In tourism, Sri Lanka has the infrastructure in place, which has not been used to its maximum capacity. What was lacking was the air links and being an island nation, these links were crucial. The Chairman said that once the peace process started his mandate was to fly to as many new destinations as possible. Sri Lanka now flies direct to Frankfurt and has plans to connect Rome and China. Once the European hubs are connected, the airline plans to sign interline agreements with carriers in Europe to connect the Sri Lankan flight. In India, the airline recently started three services to Bangalore and one flight to Bodh Gaya besides the existing services to Chennai, Mumbai and Delhi. The airline hopes to fly to Kochi in August 2003. The airline has been spreading its wings quickly. Mr Pelpola said that there was an urgent requirement to bring in the tourists and thereby provide employment for the Sri Lankan people. The airline has used up all bilateral seat allocation and taken more seats from Indian Airlines on a premium, Mr Pelpola said. The traffic between the island nation and India has grown tremendously over the past year. Sri Lankans come to Chennai for medical treatment and wedding shopping, he said. There is also a large contingent of Sri Lankan students in India, he added. A large number of Indian tourists have also started visiting Sri Lanka. Security has been a high priority in the organisation. Though the peace process is on it is not safe to lower the guard, Mr Pelpola said. Most of the airline's advertising is destination and people-oriented and it spends around four per cent of its turnover on advertising and promotions, Mr Pelpola said. When asked how the bombing of Colombo airport and the aircraft last year has affected the airline, the Chairman said that after the bombing, "we did not just sit back and expect the Government to help us out. We took a relook at our core business (of air services) and built on it". Sri Lankan Airlines has a fleet strength of nine Airbus aircraft. Mr Pelpola said the airline hopes to take delivery of two A 320s by February or March and two A 340 in May and June 2003. Emirates holds about 40 per cent of the equity of Sri Lankan Airlines. On the air cargo front, Mr Pelpola said that Colombo airport would be promoted as a transhipment hub. The airport, he said, was just 20 km from the port and shippers will be able to utilise a mix of sea-air connectivity to reach consignments to markets in Europe and the US.
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