Ex-CAA Chief slams SriLankan over Nuttal’s departure – Ceylon Today April, 29, 2025 – By Sulochana Ramiah Mohan
Source : ceylontoday.lk
Former Chairman of Hotel Developers (Lanka) PLC and the Civil Aviation Authority of Sri Lanka, Upul Dharmadasa, has criticised the decision not to renew the contract of SriLankan Airlines CEO Richard Nuttall.
Instead, Nuttall was asked to reapply for his own position, a move that ultimately led him to accept the Presidency of Philippine Airlines (PAL) — one of the top executive posts in the Asian aviation industry.
Nuttall, a British national, had been leading SriLankan Airlines since 2022. Dharmadasa noted that during the COVID-19 pandemic, Nuttall played a key role in keeping Sri Lanka’s aviation industry operational under extremely challenging conditions, pulling the industry together when it was at risk of collapse.
“He [Nuttall] kept the operations running during the hardest times. Not renewing his contract and asking him to reapply was unfortunate,” Dharmadasa said. Dharmadasa, an expert in the aviation industry who started his career at Air Ceylon and moved to the USA in 1980 before opening his travel agency, added, “When SriLankan Airlines with 23 aircraft refused to renew Richard Nuttall’s contract, Philippine Airlines, owning 49 aircraft, offered him the highest position in the airline. Philippine Airlines is the first airline in Asia.”
He also noted that with the current proposed expansion of SriLankan Airlines, Richard Nuttall should have been the most suitable candidate among all applicants for the CEO position.
In the USA, the average salary of an airline CEO is USD 72 million, compared to Japanese airline CEOs earning around USD 1.5 million. Richard was one of the lowest-paid airline CEOs in the world.
Nuttall’s departure comes as SriLankan Airlines navigates financial headwinds. The Sri Lankan government has proposed a LKR 20 billion (USD 67.5 million) relief package to assist the airline with loan repayments and interest obligations. Of this, LKR 10 billion will be allocated toward capital repayment in 2025, and LKR 10 billion toward interest payments. After settling the legacy debt, the government has stated it will no longer provide financial support, insisting the airline must achieve operational profitability on its own. At PAL, Nuttall will replace Stanley Ng, who served as President and COO since January 2022. Ng will transition to the role of Vice President at PAL Holdings, the airline’s parent company.
In a February 2025 interview with Singapore media during the Asia Aviation Festival, Nuttall described his time at SriLankan Airlines as “incredibly frustrating,” citing missed “massive opportunities” that could have strengthened the carrier’s position. He shared that SriLankan’s business plan aimed to double its current fleet of 22 aircraft within five years. However, he cautioned that the highly competitive leasing market may hinder the realisation of that target. Nuttall also stressed the importance of beginning the process of replacing the airline’s aging A330 fleet. “Depending on where we get the financing, we may go back out to market and try and work out what the long-term fleet is and start morphing into that,” he said. “But in the short term, it’s all about leasing and what’s available.”
