Surinam Airways (SLM) turnaround a big disappointment, wants $2 million a month for a year, operating 2 x B737-700's, and then what? no one knows!

SLM wants US $ 2 million a month in support for a year

https://m.starnieuws.com/index.php/welcome/index/nieuwsitem/64170

Apr 28, 6:48 AM

Tomas's Comment:

Oh boy, So it handed back to Boeing its sole B777-200ER, so it no longer can serve Amsterdam, leaving that for now to Air Belgium and its A340-300's, and eventually go to KLM.

Down to 2 x B737-700 which at best could generate around $US 16 million a year in revenue in a good year, so $US 32 million at best.

Debt is $US 102 million, having climbed from $US 40 million in just the last 3-4 years with 3 aircraft? how is that possible?

This summer American Airlines is planning 5 weekly narrowbody flights to Paramaribo from Miami, a very important route for SLM that will face an onslaught from AA, and how will SLM deal with that? nothing mentioned about Miami? Then count on Jetblue coming to Paramaribo in 1-2 years from New York, so the competitive environment is looking very bad, no AMS, no MIA, no JFK?

This does NOTHING to fix SLM which is technically insolvent, the seizure of its B737-700 at Miami by a lessor last week and released after a $US 650,000 payment by Statoil shows SLM is in deep trouble, creditors have surely awakened, and now nervous, but once again no surgery, just a band-aid solution to keep the airline going? for what purpose? if you don't want fix the business and fix the financing today?

It is dying, it needs surgery, fix the business, fix the financing, or it will die.

The airline has failed to be the economic driver of Suriname, from tourism, employment, foreign currency, international trade to cargo a national airline has a big role to play in the development of its nation, well it failed.

It can be saved and it can be grown, is what I proposed in a 34-page presentation how it can move forward step by step and become an economic engine for Suriname, but they don't get it, they don't have any investors, let's be real "as is" it has 2 leased aircraft and $102 million debt, you have to be nuts! no, you have to fix it first, have a new vision, leadership and then you find an investor.

You can take a horse to water but you can't make it drink it.

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Vice President Ronnie Brunswijk (third from right), flanked by chairman of the supervisory board Rajen Pahladsingh (2nd r) and director Paul de Haan. (Photo: DVC)

The SLM leadership, through Vice President (VP) Ronnie Brunswijk, has appealed to the government for a monthly support of US $ 2 million for a year. This amount is needed to cover the operating costs of the company. The SLM is in the process of adapting its business activities and wants to operate not only as a carrier to final destinations, but also as a transit carrier. (North, Central and South America).

Brunswijk received the SLM director Paul de Haan together with the management and the Supervisory Board on Tuesday. The SLM Crisis and Recovery Plan 2021-2023 was presented to the VP. This plan includes a process to improve the image of the SLM. Consumer confidence in the SLM must increase. To make the company healthy, the management also wants to tackle the workforce, which is too bulky. Some of the staff will be made redundant in a natural way, reports the Directorate of People's Communications.

The government is asked to refer the parastatal companies and government departments for their cargo services to and from Suriname to the SLM. This will result in a large part of the operational costs being covered. The SLM also requests that the government ensure that when the offshore oil drilling commences, the drilling rights with regard to cargo are allocated to the national carrier. This also happens in other countries. It already assures the SLM of an income by transporting the cargo for the offshore activities.

The SLM also asks for better adoption of the Covid protocols. A definitive position is needed on charter flights. Currently, the company is constantly forced to allocate passengers and change flights due to the total lockdown. It calls on the government to adjust the protocols for these flights. Passengers are transported to and from Suriname, if they have permission from the Ministry of Foreign Affairs and Public Health. The VP indicated that the requests of the SLM will be discussed within the government.