‘The challenges are not insurmountable’ – SAA

SAA has appealed to
the travel trade to keep
supporting the airline
despite current leadership
instability.
“While the present
challenges are unfortunate,
the airline has overcome
many similar challenges in
the past and remains one
of the longest operating
airlines in the world. We
call on all our valued
partners for their continued
support and can reassure
our customers that our
operations remain intact.
The airline will rise and
remains steadfast in its
commitment to connect
South Africa with the rest of
the world,” spokesperson
for SAA, Tlali Tlali, told
TNW.
Trouble at SAA was highly
publicised during the festive
period, as the gag order the
airline had obtained against
various media houses
was set aside. An internal
memo was published, which
stated that if the refinancing
contract proposed by SAA
chairperson, Dudu Myeni,
with Airbus was ratified,
it could force SAA into
business rescue or, even
worse, liquidation.
The controversial Airbus
deal also had a suspected
link to the dismissal of
the finance minister. When
former finance minister,
Nhlanhla Nene, refused
to agree with Dudu on
the purchase of 10 A320
aircraft instead of leasing
five A330-300s, he found
himself kicked to the kerb
and replaced with MP, David
van Rooyen. A financial
crisis ensued that saw the
rand collapse, and which led
to David being replaced by
Minister Pravin Gordhan.
Despite the change of
finance ministers, the
stance of the treasury
remained firm. A statement
said that Minister Pravin
Gordhan had directed the
board of SAA to conclude
the swap transaction with
Airbus in line with approval
granted in July 2015.
This means that, instead
of purchasing 10 A320s,
SAA will lease five A330-
300s from Airbus and will
no longer be required to
pay additional pre-delivery
payments to Airbus, which
would have amounted to
about R603m.
“We are concerned that
the unprecedented news
coverage regarding the
state of affairs at SAA
had the effect of painting
the company in a negative
light,” admits Tlali. He says
it is common knowledge
that the airline has
experienced leadership
instability and this has
affected the airline’s “hardwon
reputation with its trade
partners”.
He says that the airline is
in the process of appointing
a permanent ceo. “The
announcement of a new
permanent ceo is in the
offing,” he told TNW, adding
that the airline has also
appointed an interim cfo,
Phumeza Nhantsi. “We are
not oblivious to the critical
functions performed by
these positions within the
business and, as such,
priority attention is given
to these appointments to
ensure that SAA employs
people with required
competencies and skills.”