SAA requires no capital injection or bailout and plans to operate and grow using its own revenue. This is according to John Lamola, the newly appointed Group CEO of SAA, who said in an interview with eNCA that the airline had developed a three- to five-year corporate plan aimed at ensuring long-term structural and financial stability.
“SAA will no longer have to depend on any contribution from the shareholders – so-called bailouts. We have crafted a business plan, which says that we will be able to run SAA for the coming two to three years out of our own operational revenues,” said Lamola.
Beyond this, over the next three to five years, the airline will focus on elevating technical expertise and expanding market reach. Achieving this, Lamola said, might require a partnership with another airline. However, for now, SAA is not actively seeking a strategic equity partner and has not approached National Treasury for funding.
Building a cash buffer
As part of its financial strategy, SAA aims to establish a cash buffer to cover fixed costs in the event of another global crisis.
Lamola said the airline was now at a point where financial institutions were approaching them because they saw the progress SAA was making.
He added that SAA’s 2023/24 financial results would be published by the end of April.
Fleet expansion and modernisation
SAA is also looking to modernise and expand its fleet, with the goal of operating about 50 modern aircraft within five years. He said new aircraft would address environmental aspirations and improve the passenger experience.
Lamola explained that, while old SAA was flying 58 aircraft on complex international schedules, the new SAA had “resized, reconfigured and repositioned for long-term financial sustainability”.
For this reason, it may look towards the second-hand aircraft market to meet demand for modern aircraft such as A350s that will be able to assist the carrier with its aspirations to fly to the US and Europe.
“In the past six months, we've been getting about one to two aircraft every month and we deploy them to increase our routes,” said Lamola, adding that flights to the east coast of the US and increasing the airline’s European presence was a priority.
