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Outgoing Mango CEO and former SAA interim CEO Nico Bezuidenhout has said that the restructured national airline born out of SAA’s corporate bailout plan must be free from political interference if it is to be successful.
Talking with him sunday timeBezuidenhout said the dialogue around SAA’s restructuring should be “less political and economically harsher,” adding that while it would be beneficial to its operations, it is unclear whether SAA could ever be free from government interference.
“I would like a situation where the shareholders manage through a board of directors and allow the company to follow a strategic direction without any interference,” Bezuidenhout said.
He added that recent government statements were tentatively positive in this regard, suggesting that there is less desire for state control over the airline’s operations.
“The government seems to be saying it doesn’t have to directly manage and run SAA; it could do it through alternative shareholders with the government with a reduced stake,” he said.
Bezuidenhout believes that this approach would greatly improve SAA’s chances of success, stating that airlines cannot function as a government department, they must be agile and quick to react.
Ethiopian Airlines and Emirates
This follows a recent report which stated that Ethiopian Airlines is one of the companies in talks with the South African government about the future of SAA.
One of the options under discussion is reportedly for Ethiopian Airlines to buy a stake in the restructured national carrier.
This “new SAA” will require more than R10 billion in financing, and Finance Minister Tito Mboweni has said that most of the funds should come from private resources.
Other companies that are in talks with the South African government to provide funds to SAA reportedly include Emirates.
“Emirates can confirm that it has been in contact with South African Airways for general discussions related to the codeshare partnership between both airlines,” the airline told Bloomberg.
The R10 billion needed to reactivate SAA is spread over various expenses, including the following:
- R2.8 billion to resume operations
- R2.2 billion for voluntary severance packages
- R3 billion for ticket refunds
- R1.7 for aircraft leasing companies
What the new SAA will look like
The SAA relaunched it looks very different of the previous version of the national airline.
Voluntary severance packages have been offered to employees in an attempt to reduce the number of employees, with only 1,000 employees left to start the new airline.
This will cause 2,700 SAA employees to lose their jobs, including a large number of its pilots.
As part of the restructuring, SAA’s current complement of 625 pilots will be reduced to 88.
Equal employment metrics have also been reported to be more important than seniority in determining which pilots will remain in the new SAA.
This is to address the concerns of industry players that the majority of pilots and cabin crew in the local aviation industry are targets.
The government has said it will make sure the new SAA offers the right routes at the right times and at competitive prices when it flies again.
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