South African Airways (SAA) is not spiralling into collapse as some media reports might be suggesting.
South Africa’s national carrier will continue operations without partnering with Takatso Consortium.
SAA’s Interim CEO Professor John Lamola has recently updated the airline’s stakeholders, highlighting the way forward and spelling out various opportunities for the company.
TAKATSO DEAL OFF
Earlier this month South Africa’s Public Enterprises Minister Pravin Gordhan met with the company’s employees to assure them that the airline would not collapse.
The minister said that SAA’s executive team was already looking at ways to raise capital following the announcement that the deal with the Takatso Consortium had ended.
REPOSITIONED AIRLINE
Lamola revealed that SAA is operating very differently after emerging from its business rescue process. The airline has repositioned itself to enable sustainable growth.
“We remain committed to uphold SAA’s 90-year legacy of resilience, reliable operations and excellence in the sky, and we are charting a path to ensure that we are around for at least 90 more years,”
Professor John Lamola, Interim CEO, South African Airways
SOUTH AFRICAN AIRWAYS’ FINANCIAL POSITION
The repositioned airline is exploring alternative options to finance its growth, independent of South Africa’s national fiscus.
“SAA has unencumbered assets that we are ready to convert into cash. And our recovery has significantly repaired our credit rating with financial institutions, which have closely followed our journey back to stability. This new economic profile of SAA has unlocked funding opportunities that were not available to us three years ago,” said Lamola.
SOUTH AFRICAN AIRWAYS TURNS A PROFIT
According to Ch-aviation, Lamola said that unpublished accounts for the year to March 2023, which are now being audited, will show that SAA turned its first profit in more than a decade, albeit not a huge one.
“Some will say this is a modest profit but, given where SAA is coming from, I wouldn’t say this is a modest achievement at all.”
Professor Lamola, SAA
STOCK EXCHANGE LISTING FOR SAA
In an interview with the Financial Times, Lamola said that after finding such a partner SAA would like to list on the Johannesburg Stock Exchange. However, the government would retain the major shareholding to ensure the country’s interests are protected.
Lamola emphasised that the airline holds membership to various reputable organisations including the International Air Transport Association (IATA), the African Association of Airlines (AFRAA) and the global Star Alliance network.
