SAA has confirmed that it will cut its Buenos Aires route.
Spokesperson, Tlali Tlali, told eTNW that SAA’s long-term turnaround strategy includes a range of recommendations, such as route cancellations. One of the recommended cancelled routes is Buenos Aires, which he confirms will go ahead. SAA will release more details on this once the decision has been finalised.
It is common knowledge that SAA’s international routes are loss-making and, apart from Buenos Aires, it was also suggested that the airline cease operations to Beijing.
However, SAA has received feedback from government advising that it must continue to operate its loss-making Beijing route, says Tlali. He adds that this is a political decision, based on the fact that China is one of South Africa’s biggest trading partners and a member of BRICS.
An analysis report by CAPA, an industry association that focuses on aviation market intelligence, says SAA faces a pressing need to start moving forward with its new strategic plan, which includes pursuing expansion within Africa and cutting unprofitable long-haul destinations such as Buenos Aires.
“The new business plan, which was initially completed in April 2013, represents a critical step in finally fixing the long floundering carrier. But SAA has not yet implemented any major components of the plan although most of the pieces have secured the required layers of approval,” the report says.
“The continued delays in implementing the long-term turnaround plan are costly as SAA continues to bleed. It needs to move quickly to build on its position in the intra-Africa market, with more flights from South Africa and a possible new base in West Africa, as competition within Africa is starting to intensify. SAA also needs to finally move forward in acquiring new widebody aircraft, which were identified in the plan as essential for a sustainable long-haul operation,” it says.
