The Turnaround of Srilankan Airlines
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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BSTR196 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra
ThemesCorporate Turnaround |
| Case Length |
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17 Pages |
| Period |
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1980-2005 |
| Organization |
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SriLankan Airlines |
| Pub Date |
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2006 |
| Teaching Note |
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Available |
| Countries
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Sri Lanka |
| Industry |
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Aviation |
Abstract:
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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.
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Issues:
» Appreciate the challenges faced by an airliner operating in a
politically unstable environment
» Understand the methods used by the management of SLA to turn around
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
Contents:
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
The Turnaround of Srilankan Airlines
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