Bankrupt Surinam Airways struggles to maintain its services

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bimjim
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Bankrupt Surinam Airways struggles to maintain its services

Unread post by bimjim » Mon Aug 13, 2018

https://www.linkedin.com/pulse/praticia ... -chlumecky

Practically bankrupt Surinam Airways (SLM) struggles to maintain its services with expensive wet leases, just 3 aircraft, $6.3m loss and $41m deficit
Tomas Chlumecky "Aviation Doctor"
May 21, 2018

Tomas's Comment:

I know this airline well, and going back to the 1980's, it has had a rough history since independence from the Netherlands in November, 1975.

Its now losing money at a high rate for an airline with just 3-4 aircraft, $US 6.3m in 2017 alone, and has missed out on many opportunities on 5th freedoms, 6th freedoms and 7th freedoms in the Caribbean, it's 'small' thinking has held it back from being a major player in the region.

With no national airline in Guyana, Grenada, St. Lucia, Jamaica, St. Vincent & the Grenadines, St. Maarten, etc. there were and still are opportunities outside its traditional ABC islands, Belize and Florida, heck Northern Brazil is to the south, but no, they are too old fashion, can't look beyond their traditional markets, and its why they are all but bankrupt.

Time for surgery is now, or let SLM go bankrupt, and let private capital start a real airline that will serve the country's needs and be profitable and create jobs.

Even when I was there in the 1980's they were wet leasing a B737-200ADV (OY-APR 'Tjon-Tjon') from Maersk Air at that time, and then came June 7, 1989 when a SLM DC-8-62 (N1809E ex-Braniff, PHOTO Below) with 178 passengers and 9 crew coming from Amsterdam made its final approach into then Zanderij Airport (now Johan Adolf Pengel International Airport)

During the approach, the plane's No. 2 engine struck a tree at a height of approximately 25 meters above ground level. The right wing then struck another tree, causing the aircraft to roll and impact the ground inverted. Of the 9 crew and 178 passengers, none of the crew and only 11 passengers survived, leaving 176 dead.

Today, Suriname has over 560,000 residents and a very young growing population that wants to be more open to the outside, few people have heard of Suriname, yet it is a beautiful place with warm people.

It's time for Suriname to change its airline, time for a Ministry of Tourism, and time to create an airline they can be proud of, not 22+ year old aircraft but modern aircraft that can serve JFK, MIA, DAL, etc. to bring tourist to the country.

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The Surinam Airways (SLM), sees its figures for the financial year 2016-2017 fall further in the red.
The airline runs 1 x A340-300 for its PBM (Paramaribo) to AMS (Amsterdam) service, then a 20+-year-old B737-300 and a leased B737-700 (ex-Air China PHOTO Below) from DAE (Dubai Aerospace Enterprise) that just arrived with no maintenance manuals? so the airline has been busy using expensive wet leasing from the likes of Travel Service (Czech Republic), TUI, Air Belgium, etc. and others.

This is a case of doing the same things over and over again and expecting different results, little has changed, CEO Robbi Lachmising was brought out of 12+ years in retirement in 2016 to fix it, last month, he was let go, due to some fraud with local ground handling company? (very common in Suriname), but now he will come back? he's political appointee that is holding back the airline, in my opinion.

Political appointees will NOT fix the airline, its time for a new management team to restructure the airline, develop a new business plan and strategy and give the airline a sustainable future, this airline today is struggling day to day to keep its head above water.

In the annual report of the SLM, on which the newspaper has managed to lay its hands, a loss of more than 6.3 million US dollar is reported over the past year.

The capital deficit increased further to 41.4 million US dollar. This deficit was already 35.2 million US dollars in the 2015-2016 financial year.

The liquid assets of the company have also decreased by 2.6 million US dollars. The key figures show that the liquidity position of the total company (SLM, METS, Residence Inn) is worrisome. The literal wording in the annual report, on page seven, reads as follows: "The solvency ratio of shareholders' equity / total capital which gives an indication of the company's ability to meet the long-term obligations is at the end of the year under review, just as the previous year. The company is not solvent and may not be able to meet its long-term obligations without additional financing."

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