Pilots Cry Foul On Unfair Business

by Nirmala Kannangara-Monday, July 25, 2016

The Airline Pilots Guild of Sri Lanka (APGSL) will take stern action against the management of SriLankan Airlines if they fail to accord them the use of business class lounge facilities and its privileges both at Colombo and overseas airports which the employees had

enjoyed from the very inception.

The management of SriLankan Airlines has come under severe criticism for their unilateral decision to stop business class lounge facilities and other privileges given to eligible employees and their eligible dependents on seat availability basis from July 1, 2016. However, to the utter dismay of staff, the Chairman, the Board of Directors, the Chief Executive Officer and Chief Commercial Officer have been exempted from this restriction.

“We were told that this decision was taken as a cost-cutting measure. If the Board of Directors is so keen to generate income, then it is they who should set the example from the front by refusing all the facilities given to them. By stripping us, the permanent employees, of what we were accorded from the beginning but giving the facility to political appointees is questionable. As employees in the permanent grade, we want to see the airline thrive but the political appointees do not have such a vision but are using whatever facility they are entitled to and enjoying the perks to the maximum without caring whether their action is detrimental to the institution or not,” reliable APGSL sources said.

Minister of Public Enterprise Development Kabir Hashim, who is the Subject Minister of SriLankan Airlines, recently travelled in economy class with his wife and although the airline crew had repeatedly wanted to upgrade him to business class, Hashim had gracefully declined to accept.

“This is a good example for the Sri Lankan management. Why cannot they follow their minister and save millions every month by travelling in economy class?” sources queried.

The sources on condition of anonymity accused the good governance administration of appointing people who are not qualified in the airline field to the board of directors.

“Not all those who have been appointed are unqualified to hold a director post at an airline; there are one or two who, despite not having the qualifications nevertheless have knowledge of how to lessen the debt. But most of those in the director board only have knowledge in incurring more losses to the company than generating profits. To our knowledge the only chairman SriLankan Airlines ever had with a vision to generate profits was Harry Jayawardena. He was strict to his fingertips but he also ensured that all his staff members were well looked after. He took to task employees who were not performing well and did not leave any stone unturned to make this airline a profitable venture. As pilots we have to be on board one hour before the passengers board but as a habit we did not comply with this regulation. But during Harry Jayawardena’s tenure no one could play out as he knew what was going on. He did not work for the airline to get a better vehicle, regular free tickets or any other perks; instead, his was an honorary service. If he was there on the board now, he would have got all perks given to the board members curtailed and given the facilities to the employees,” sources claimed.

The sources further said how a former SriLankan employee, who later worked for many foreign airlines where some had to be closed down due to his ‘efficiency’ and is now back at SriLankan, is taking decisions detrimental to the almost cash-strapped national carrier.

“When there are many eligible in-house officials who could have easily been promoted to the post of Chief Commercial Officer (CCO), it is alleged that on the recommendation of R. Paskaralingam, 61-year-old Siva Ramacahndran was recruited. This in itself is against company regulations. Other than a few senior pilots, none of the other employees can work after the age of 60. However the present management recruited a person above 61 years to the post of CCO who was instrumental in closing down the Frankfurt and Paris flights a few weeks earlier. To our knowledge the London flight incurs more losses than the Paris and Frankfurt flights. Despite this, the present management and the CCO in particular do not want to stop the London flight as they will miss their regular free rides to London,” sources added.

According to the sources, it is alleged that it was the CCO that brought up the idea to stop the business class lounge facility given to all managerial level employees.

The sources further accused the government of appointing Captain Suren Ratwatte as Chief Executive Officer (CEO) after the regime changed and queried how many years of experience Capt. Ratwatte has as a CEO in any large business organisation.

“Just because he is the brother of Charitha Ratwatte, who is a buddy of Prime Minister Ranil Wickremesinghe, he was appointed as the CEO of SriLankan Airlines. He has no experience as a CEO in running an establishment before. We too are pilots. Can we also get CEO posts? To hold such a responsible post the person should have a good knowledge in managing the organisation and not using abusive language on the pilots,” sources claimed.

The circular dated June 30, 2016 curtailing the use of business class lounge facilities for employees and their eligible dependents who possess AD/ID tickets states, ‘This is to inform you that with effect from July 1, 2016, the following policy guideline shall be implemented in connection with providing lounge facility for passengers holding AD/ID tickets at system-wide airports. All passengers holding AD/ID tickets will not be entitled to lounge facility at the Colombo and overseas airports. The affected categories are – all SriLankan airline staff and their dependents (active staff and ex-UL staff) travelling on duty or vacation excluding Chairman/ Board of Directors and their eligible dependents travelling on duty or vacation will be entitled to lounge facilities at Colombo and overseas airports, Chief Officers travelling on official duty will be entitled to lounge facilities at Colombo airport only and all other staff members entitled to business class firm tickets travelling on official duty will be entitled to lounge facilities only at the Colombo airport.’

Accusing the management, the sources said that the policy decision was taken without consulting the employees and accused the Board of Directors of not keeping the APGSL members informed until their members were barred from entering the business class lounge. The sources further accused the management of curtailing the privileges given to its employees due to lack of funds.

“We understand the restrictions we have to face due to the airline’s financial situation. If it is so what made the SriLankan management book a hospitality box at Lord’s cricket grounds in London during Sri Lanka-England final test match and spend a few millions on food and drinks? In addition the Chairman, the Chief Executive Officer and the CCO too travelled to London for this occasion. What made them spend money on unnecessary events when the airline is suffering? There are so many other events this airline has sponsored without taking into consideration that we are running at a loss,” sources added.

According to the sources, although the policy decision taken states that the Chairman and the Board of Directors and their eligible dependents can use the lounge facility and Chief Officers and other staff who are entitled to business class firm tickets are entitled to use the lounge facility only at the Colombo airport and their eligible dependents are not entitled, any exceptions to the policy stipulated above could be authorised only by the CEO or the CCO, questions have been raised as to how certain it is that these two officials would not authorise their kith and kin to use the lounge facility not only at Colombo but also overseas airports as well.

“We know what they are up to. They drafted the policy decision just to show us that only the Chairman and the Board of Directors together with their families can enjoy the lounge facility but not even the CEO and CCO. But in reality they all are in one boat and enjoy all the perks,” sources said.

Although the sources said that APGSL wrote to Chairman Ajith Dias seeking his clarification as to why a new policy was introduced on the use of the business class lounge only for the staff but not for the management, for the past three weeks neither the Chairman nor the CEO or CCO have replied clarifying their stance.

Speaking further, the sources explained how the airline will suffer more strife due to the cancellation of one A350 aircraft and added that if the government wants to cancel the order for the other seven aircraft as well, it would be a huge loss to the already suffering airline.

“Although the Prime Minister said that the government has to pay US $ 12 million to cancel one aircraft and it had been done, we understand that to cancel one aircraft order we have to pay nearly US$ 16 million. Unless they are bought and could be leased out to break even, the country in general and the airline in particular are going to suffer immensely,” sources added.

Chief Executive Officer, SriLankan Airlines Captain Suren Ratwatte was uncontactable for a comment. Although a text message was forwarded seeking a comment from him on the allegations levelled against the management, Ratwatte had not responded at the time of going to press.