New SAA ceo by mid-June – Treasury

BEFORE mid-June 2017,
recommended candidates for
the ceo position of SAA will be
submitted by the board for Minister
Malusi Gigaba’s consideration, National
Treasury told TNW. The recommended
candidate will then be presented to
Cabinet.
The process of appointing a new ceo
has taken more than a year, with Musa
Zwane acting in the position since
November 2015. According to the travel
trade, the absence of a permanent ceo
has had a damaging effect.
“We don’t know who to speak to
at SAA and no one is empowered to
make decisions. We don’t believe that
decisions are made for the benefit of
the airline and the lack of direction is
eroding its market share,” says Ramon
Geldenhuys, ceo of 360 Degrees Travel.
Inge Beadle, manager of Corporate
Travel Services, agrees and says agents
get little trade support. “Even though
the sales reps are quick in answering
their mails, the airline itself ignores
requests or reacts with negative
answers.”
According to Inge, SAA has still not
finalised any new contracts for this
year. She says: “One can’t get any new
contracts signed as there isn’t anyone
to take responsibility. The old contracts
are reluctantly being honoured
and payment is done months after
deadline.”
Minister Gigaba has said he ‘has full
confidence’ in the ability of the SAA
board to turn the airline around. He
added he would look at filling the ceo
position with someone who has aviation
expertise.
By the end of June 2017, SAA will
also submit its revised turnaround
strategy. A spokesperson for Treasury
told TNW: “The existing turnaround
plan is being revised and revalidated. It
forms part of SAA’s five-year corporate
plan and will be submitted by SAA at
the end of June 2017.”
Treasury remains tight-lipped on
a possible merger between SAA,
SAX and Mango and the possible
introduction of an equity partner. “The
study undertaken by Bain and Abacus
in this regard has been completed
and the next steps are for National
Treasury and Department of Public
Enterprises to review the options and
recommendations to allow an informed
decision to be taken on how to
proceed,” a spokesperson told TNW.