SriLankan Chairman Demands Cash and Jets from Airbus
SriLankan Airlines chairman Sarath Ganegoda has formally pressed Airbus for the return of $23.3 million in pre‑delivery payments, $200 million in compensation, legal support, and four new A330‑900Ns free of charge, ideally delivered before year’s end. Ganegoda outlined these demands during a series of meetings with Airbus executives, according to a report by the Mauritian Sunday Times, arguing that airline funds were “stolen” through a flawed procurement process that dates back more than a decade.
The root of the dispute lies in a 2012 contract for six Airbus A330‑300s and four A350‑900s. While the A330s were eventually delivered via leasing partners, the A350‑900s never arrived and the A330‑300 sale under a lease‑back deal in 2017–2018 generated a $2.4 million loss. During Air India–style administration in 2021–2022, sales of two A319‑100s and an A330‑200 cost the carrier roughly $21.5 million in combined losses. Two more A340‑300s that were dismantled and sold for parts in mid‑2021 added another $3 million of losses. Ganegoda insists Airbus must reimburse the original pre‑delivery sums of $19.2 million plus interest of $4.1 million and cover related A350 expenses.
Beyond direct refunds, the chairman wants Airbus to intercede with key suppliers to drop significant claims. He has called on Rolls‑Royce to forgo two outstanding claims totaling $153.9 million over cancelled Trent XWB engine agreements and urged Thales Avionics to abandon a $3.7 million claim tied to in‑flight entertainment installations on the undelivered A350‑900s. Additionally, Ganegoda demands Airbus remit or waive $6 million in legal fees accrued during ongoing disputes.
Ganegoda, who took over as SriLankan Airlines chairman last October, also serves as chairman and controller of Hayleys plc, a major Sri Lankan conglomerate. Hayleys was among the shortlisted bidders for a controlling stake in the airline under the previous administration, but that sale was halted after the government deemed no bidder fit. Since Anura Kumara Dissanayake’s Janatha Vimukthi Peramuna (JVP) party came to power in late 2024, sources say Ganegoda has wielded significant influence over aviation policy and top appointments, although neither Dissanayake nor the JVP has publicly endorsed his aggressive negotiating stance with Airbus.
Airbus has declined to comment on Ganegoda’s demands. Sarath Ganegoda also did not respond to requests for further detail. Industry analysts note that asking for free aircraft and third‑party settlements represents an unusually bold approach, especially given Airbus’s dominant market share and the complexities of multilateral supplier contracts.
Meanwhile, SriLankan Airlines is also in the midst of finding a new CEO after longtime chief Richard Nuttall was informed in late March that his tenure would not be renewed. Nuttall remains in post for several more months as the board finalizes its choice among three shortlisted candidates. The Dissanayake administration reportedly regards Nuttall as aligned with the previous government, prompting the leadership change.
As Ganegoda advances his claims against Airbus and related suppliers, SriLankan Airlines faces a critical juncture. The outcome of these high‑stakes negotiations and any subsequent legal actions could reshape the carrier’s balance sheet and influence its ability to modernize a fleet that remains vital to the Indian Ocean island’s connectivity and tourism sector. The aviation community will be watching closely as Airbus and its suppliers weigh the financial and reputational risks of acceding to or resisting Ganegoda’s sweeping demands.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com