Sri Lanka’s National Carrier — Some Reflections
It was revealed that much damage had caused to the National Carrier due to mismanagement including bad financial management. Thus Air Lanka too ended in failure.
( March 10, 2018, Colombo, Sri Lanka Guardian) Much has been written about the loss making National Carrier for some time in the media and now the President has already appointed a Commission to investigate and inquire into alleged irregularities committed in connection with Sri Lankan Airlines, Sri Lankan Catering and Mihin Airline. This is a welcome sign but such an endeavour should not be another waste of tax payers’ money at the end. Sri Lankan Airline’s Board does not seem to have followed the recommendations made by the previous Commission on Air Lanka wittingly or unwittingly. Sri Lankan Airlines faltered because of capricious decisions of politicians as usual and nepotism. However I thought of putting down my views after having read many such opinions.
AIR CEYLON & AIR LANKA
Air Ceylon had at that time the advantage of having top class Captains most of whom were trained by foreign carriers to operate the aircraft that kept the national carrier within the safety standards and flying quality. During those days reputed International Airlines such as BOAC/ UTA/KLM/QANTAS among others had afforded facilities for training of staff in key spheres of the Airline that helped Air Ceylon move ahead. Passengers normally enjoyed the flights.
President Jayewardene’s decision to start Air Lanka at that time with the assistance of the Premier of Singapore Mr. Lee Kuan Yew who made the most-prosperous country in Southeast Asia was a wise and strategic move as the Singapore Airlines that was profit making and made available to the newly formed national carrier skilled staff and know-how. Thus advent of Air Lanka in spite of rising costs of operation was another right step in the aviation history of this country. The then President hardly ever interfered with the affairs of the airline until malpractices and irregularities came to light that led to appoint a Presidential Commission of Inquiry. The President appointed Captain R Wickamanayake as the Chairman and Managing Director who was a senior Captain when Air Ceylon was wound up to make way for Air Lanka in association with Singapore Airlines but finally he had to leave on the recommendation of the Commission of Inquiry that was appointed subsequently by the same President that conducted an inquiry into the alleged irregularities and maladministration. An Interim Report was submitted to the President after preliminary investigations upon which the Board was asked to resign. Malpractices by an experienced Captain as Chairperson/MD could be many if that person lacks knowledge and practical experience in administration, procedures and other rules and practices. The Chairman/MD acted reportedly on his whims and had been authoritarian. However a bit of credit should go to the then Chairman/MD who trained, disciplined and instilled flying qualities of pilots and cabin crew using his flying experience despite of his failures in administrative and other vital spheres that caused crash. As a result of which Customer Services also were commended and the catch phrase: “Taste of Paradise” was closer though elusive. In this context taking a lesson Sri Lankan Airlines need to revive customer services once again. Later Airline lost its footing once again when the “Emirates” was made to leave due to awful political pronouncement.
The Commission of Inquiry of 1986 advised to keep the two positions of Chairperson and MD separately perhaps because it was found that a combined post of that type could be disastrous as the findings revealed how authoritarian the former Chairman/MD had been. Theoretical knowledge alone will not do in any field that needs practical and proven experience. Findings of the Commission disclosed how a senior Captain sans administrative knowledge acted contrary to established rules and procedures ignoring good practices in making decisions which were found to be arbitrary and authoritarian. It was revealed that much damage had caused to the National Carrier due to mismanagement including bad financial management. Thus Air Lanka too ended in failure.
It was suggested that a Senior Captain could be considered for appointment as Chairperson or CEO. It may be helpful to have an experienced Captain also as a member of the Board but not necessarily as CEO or Chairperson. The reason is that a senior Captain is always available as Head of Operations who could be consulted by the Board when required. A Pilot who is flying needs full time attention to the job in view of the level of responsibility expected of a Pilot.
The Commission of Inquiry advised to keep the two positions of Chairperson and MD separately perhaps because it was found that a combined post of that type could be disastrous as the findings revealed how authoritarian the former Chairman/MD had been. Theoretical knowledge alone will not do in any field that needs practical experience. Findings of the Commission disclosed how a senior Captain sans administrative knowledge acted contrary to established rules and procedures ignoring good practices in making decisions which were found to be arbitrary and authoritarian. It was revealed that much damage had caused to the National Carrier due to mismanagement including bad financial management. Thus Air Lanka too ended in failure.
Therefore a CEO or Chairperson should be competent person familiar with relevant areas of the airline business, and procedures. Interested Politician or nitwit may contradict this position for obvious reasons. The writer reminisces with great delight how Air Ceylon was pronounced as the Safest Airline in the world- of course a national pride- although some financial and other issues were reported. It is sad to note that undue interference by relevant politicians in the public service and similar other public institutions caused misery in many fields in this country since the enactment of Constitution of 1972. The situation was further deteriorated with the promulgation of the Constitution of 1978 that introduced the Executive Presidency. Maladies still continue unabatedly though the status quo may hopefully change for better with the “good governance” policy of this government.
TO BE A NATIONAL PRIDE
Truly an Airline will be a national pride to a country if it is well managed. Losses of Sri Lankan Airlines as reported amounting to billions certainly could be attributed to many factors. It is clear that so called “businessmen” have failed so far in this business of running an airline for the simple fact that a successful businessman in any other business may be out of place in the matters of business of an Airline especially with political interference. Therefore a competent leader as Chairperson who is knowledgeable of laws and procedures is sine qua non. A Board should be given free hand to show results without unnecessary interference. Also a Board must consist of competent professionals with experience in aviation business, administration and finance and needs restructuring efforts looking into all divisions to eradicate waste and corrupt practices to save the Sri Lankan Airlines. Whoever who is appointed to a Board is expected to be familiar with rules and procedures, if not that person must be a person with common sense to consult the relevant authorities and act sensibly. Authoritarian attitudes and disregard for due process especially not being accountable and responsible for the decisions do much harm to the Institution and then to the country. Despite the free hand given by the relevant Minister to the Board under the present government, the Board still failed to perform and presumably mismanaged the airline without much consideration being given to strategic restructuring/turnaround management, cost cutting exercise at the right time. Negotiations when purchasing/leasing aircraft should be handled by ‘professionals’ who are knowledgeable and experienced. Evaluation of route structure is mandatory to identify routes that are profitable.
Major decisions should be taken with the approval of the Board and such decisions have to be taken in the best interest of the airline. Well considered, carefully assessed and defensible decision making is vital instead of arbitrary decision making. Any adverse or arbitrary decision means disaster for the airline and that was well observed in the past decade as never seen before in the aviation history of Sri Lanka. No corrective action appears to have been taken. A political appointee tends to be authoritarian that does more harm to the institution as observed in the past. Appointments made based solely on political patronage ignore or side-line the competent professionals for political expediency whilst the ignorant in most cases are generally given exalted positions who becomes square pegs in round holes much to the destruction of the economy and development which should be stopped for the benefit of the country.
There are sons of the soil who are competent in airline operations whose talents are not made use of and persons of such calibre do not go behind politicians and their henchmen canvassing for posts. Those at the top management of any airline are expected to be familiar with and understand the issues of aviation business in order to make effective decisions and help maintain a sustained business development. The Board must be able to ensure the right balance of skills, experience and acumen in all matters. Studies with regard to route network, pricing, sales, promotion strategy and forecast, market analysis and strategy and implementation, market fluctuations of fares and rates of cargo should be continuously undertaken. Bilateral Air Services Agreements should be entered after carefully considering favourable route structures. In the event of selecting an International Air Carrier to back up the national carrier needs overall analysis of its viability with complementary route structures before embarking on such a venture. Purchasing or leasing aircrafts when the situation permits should be minutely considered and vetted before reaching a final decision.
LESSONS FOR REFORM
One lesson learnt from the past is to keep the Airline free from political interference once a Board with capable and experienced persons is appointed. If the management of the Airline is left in the hands of competent persons without undue political interference allowing a rightsizing exercise the Airline would show profits gradually by bringing in revenue. To enhance and maintain the prestige of any airline flying qualities of its pilots, cabin staff, quality of engineering in the maintenance of its aircraft, proper maintenance of safety standards and competitive and successful commercial operations with workable extension strategy should be in place. Standards should remain high at all times. Maintaining undisrupted timely services adhering to the time schedules, courteous and friendly passenger services and quality catering services will not only attract passengers but also keep the airline flying with colours of which the country can be proud of. Ground handling and cargo services should also keep in line with quality control. Continuous cost benefit analysis and market research should be carried out to keep the Airline within the boundaries in face of competition. Thus passenger base may be increased and retained. Good administrative and financial considerations are necessary. Cancellations, re-routings and delays due to VIP movements should not be allowed as happened in the past that caused heavy losses thereby losing passengers to other airlines that resulted in loss of revenue. Finally country lost both passengers and revenue. Are we ready to reform ourselves to have an Airline that will keep the flag flying?
BE PATRIOTIC & ENSURE MERITOCRACY
If politicians are so patriotic then they must concern themselves not only about safety of the country but also about the progress of the country as well to be meaningful patriots. Patronage whether personal or political, in making appointments to the key posts (except for personal staff & few essential ones) that continues to ignore the capable and qualified professionals will further ravage the country as a whole. Abuse of public funds becomes major issue when a person without integrity is appointed to be the Chairperson who is especially from a political family. Nepotism is another malady in this country. Sadly this is one of the signs of a failing nation. Weliamuna Report too is said to have found fault with former Chairman and some high officials under the previous government who abetted him in taking adverse decisions that made the Airline debt ridden and collapse. Reportedly even the newly appointed Board by the “yahapalana government” under which some of those found fault by the Weliamuna Commission have been promoted without having any inquiry being held.
“Meritocracy” is a concept long lost in this country and has to be revived for good if the country is to be taken forward. The Country has so far deteriorated because of “Nisso sitiyadee pussan wajabeema” in many instances. “Right person at the right position” should be the motto. Patriotic politicians and professionals must get together and change the rotten systems that hinder the forward march of the nation. In this exercise let the Rule of Law and due process prevail unhindered and let laws apply to all equally. Necessity of appointing Commissions of Inquiry will not arise if the Board and the senior management follow the financial and administrative procedures with necessary audit checks at the right time. Public funds can be saved in case any deviation or breach is found and proper action is taken promptly. There are enough laws to deal with such circumstances.
( Attorney-at-Law and a former Secretary, Dept. Of Law Commission -Ministry of Justice)
