SAA CEO John Lamola asserts that the airline is no longer financially dependent on the government, nor is the plan “to recreate a huge SAA’”, but one that is totally different, requiring less intensive capital.
Speaking at African Aviation Summit – Air Finance 2023 conference in Sandton on May 12, Lamola said SAA’s creditor obligation has now been concluded and that it has sufficient funds to meet its obligations by August this year. “The history of South Africa’s people persevering through adversity is the DNA of SAA. We have waded through the storm and are now solvent and operationally profitable.
“SAA has a national responsibility to grow the whole of the South African airline industry. As national carrier, we need to provide long-haul airlift for South Africa,” said Lamola, stressing that this would be a major focus going forward. The new wide-body aircraft will be needed to fulfil reciprocity of bilateral agreements.
“Our first foray into the international route market will be announced in the coming weeks.”
He said SAA is planning a robust risk mitigation strategy to deal with the current headwinds in the aviation industry. These include overcapacity in the market, the geonational political situation, a looming economic meltdown plus the Rand currency situation. These are impacting incomes, posing the possibility that air travel could end up becoming a luxury for most people.
To gain international market share, he says SAA is obliged to change the current situation of foreign carriers serving 80% of the South African market. “The over-deregulation of foreign carriers is going to be tempered going forward. We are confident we can take on the routes that foreign carriers are flying,” he said, adding that the airline has strong codeshare plans.
Lamola stressed that SAA is retaining its Heathrow slots for the next three years and is under pressure to resume its London route. “We will need two wide-bodies to serve the route.”
He described the domestic market as a graveyard which has buried many airlines. “We must invest in it very carefully. We do not allow politicians to dictate routes – a dramatic mindshift.”
Referring to the “post-Zondo SAA”, Lamola said the airline is working with Zondo’s recommendations, and revising its policies accordingly. “The clean-up has happened and is continuing. We have a new supply-chain policy, new ethics and code of conduct policy and more. We are very impressed with how things have been thus far – there’s been no scandal in the past 18 months and we are working to clean up our reputational damage.”
