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Trade unfazed by changes at SAA

12 Aug 2015 - by Dorine Reinstein
Comments | 0



THE SA travel trade

remains supportive

of SAA as turmoil and

instability continue at the

embattled airline’s top

management level.

The national carrier saw its

sixth change of leadership

in three years last week

when SAA suddenly

announced that acting ceo,

Nico Bezuidenhout, would

return to Mango, effective

immediately.

On the evening of July

29, just two days before

Nico was expected to arrive

in Ghana to attend the

launch event of SAA’s first

flight between Accra and

Washington DC, SAA staff

received a communication

from chairperson, Dudu

Myeni, to say that “at

the request of the Mango

Airlines Board, the SAA

Board has acceded to

Mango’s request that Mr

Bezuidenhout be returned

to his primary role as ceo of

Mango Airlines”.

She continued to say that

the 90-Day turnaround plan,

which was led by Nico, was

“now fully operational and

the compelling need for Mr

Bezuidenhout’s continued

role at SAA has normalised

compared to the need

for his position as ceo of

Mango”.

Human resources gm,

Thuli Mpshe, has taken over

the reins of the airline.

She has several

qualifications, including a

BCom from Unisa and a

postgraduate certificate in

Business Management from

Warwick University in the

UK. She started her career

in banking and has worked

for two of the top banks in

South Africa.

SAA did not respond to

questions on why Thuli had

been chosen to replace Nico

as acting ceo.

National Treasury’s

acting chief director of

communications, Phumza

Macanda, told TNW: “These

are board decisions and the

Minister has requested and

is still waiting for the board

to explain the circumstances

surrounding the departure of

the ceo and the appointment

of the acting ceo.”

SAA’s leadership

challenges won’t impact

on the travel trade,

industry players say.

“There has been so

much turmoil at SAA over

the years, the trade has

hardened itself,” says Allan

Lunz, md of BidTravel.

He says although it is

disturbing that SAA can’t

seem to find a ceo, the

trade’s relationship with the

commercial team of SAA is

unaffected.

Pentravel ceo, Sean

Hough, agrees that as long

as the commercial team at

SAA remain consistent, the

changes at top level won’t

affect the trade.

The commercial team at

SAA are very invested in the

trade and will do everything

to nurture this relationship,

says Chris Zweigenthal, ceo

of Aasa.

“A change in leadership

doesn’t mean the place will

fall to pieces,” he says.

However, in the long term,

a permanent solution is

needed to bring stability to

the airline and ensure SAA

continues on the turnaround

course set out by Nico.

During his tenure as acting

ceo, Nico made great

progress in improving SAA’s

operations and significantly

reduced costs. The 90-Day

Action Plan, which was

completed at the end of

March, brought about a

35% improvement in the

airline’s operating position,

year-on-year.

“The constant changes

don’t look good overseas

for brand South Africa and

they create uncertainty

here at home,” says Sean.

“There is no question the

airline needs consistent

leadership but it’s becoming

increasingly difficult to fill

the position of ceo. I’m not

sure the environment is right

to attract the right business

person.”

“It’s important that SAA’s

plan of action remains the

same,” says Dinesh Naidoo,

group operations director

of Serendipity Worldwide

Group. “SAA can’t keep

treating the symptoms; it

needs to address the virus.”

Although a new ceo

will undoubtedly bring

about a different style

of leadership and he or

she might modify certain

aspects of the turnaround

strategy, this doesn’t mean

all the positive changes

Nico brought about will be

undone, says Chris.

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