||SOUTH AFRICAN AIRWAYS
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SAA-2012-07 - TEAM SOUTH AFRICA
SAA-2013-09 - BAD WEEK DETAILS
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FORMED IN 1934. SOUTH AFRICAN AIRWAYS (SAA) WAS ESTABLISHED FOLLOWING THE ACQUISITION OF ALL ASSETS AND LIABILITIES OF A PRIVATE AIRLINE, "UNION AIRWAYS," AND BEGAN CHARTERED AND SCHEDULED FLIGHTS BETWEEN CAPE TOWN, DURBAN, AND JOHANNESBURG. THE FIRST "SPRINGBOK" SERVICE BETWEEN SOUTH AFRICA AND THE UK WAS OPENED IN NOVEMBER 1945. AUSTRALIA WAS REACHED IN NOVEMBER 1957, AND A SERVICE TO NEW YORK FOLLOWED IN FEBRUARY 1969. IN APRIL 1990, (SAA) BECAME A DIVISION OF STATE-OWNED COMPANY, TRANSNET, IN PREPARATION FOR PRIVATIZATION, WHICH WAS PARTIALLY IMPLEMENTED IN JUNE 1999 WHEN A 20% STAKE WAS SOLD TO THE SAIRGROUP (THE HOLDING COMPANY OF SWISSAIR (SWS). THIS WAS BOUGHT BACK, WHEN THE SAIRGROUP (SWS) COLLAPSED. DOMESTIC, REGIONAL, & INTERNATIONAL, SCHEDULED & CHARTER, PASSENGER & CARGO, JET AIRPLANE SERVICES.
PRIVATE BAG X13
JOHANNESBURG INTERNATIONAL AIRPORT
JOHANNESURG, GAUTENG 1627, SOUTH AFRICA
SOUTH AFRICA (REPUBLIC OF SOUTH AFRICA) WAS ESTABLISHED IN 1910. THE OFFICIAL LANGUAGES ARE: AFRIKAANS, & ENGLISH. IT COVERS AN AREA OF 1.12M SQ KM. THE POPULATION IS 44 MILLION. THE CAPITAL CITY IS PRETORIA.
Johannesburg also known as Joburg, is the largest city in South Africa. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa. The city is one of the 40 largest metropolitan areas in the world and it is one of Africa's only two global cities. While Johannesburg does not form one of South Africa's three capital cities, it does house the Constitutional Court – South Africa's highest court.
JUNE 1993: PART OF TRANSNET LTD.
1992 = -$114.6 MILLION (NET LOSS) (-$72.3 MILLION): +13.1% (RPK) PASSENGER TRAFFIC; -3.5% PASSENGERS (PAX); +38% (FTK) FREIGHT TRAFFIC.
SEPTEMBER 1993: (LAM) MOZAMBIQUE 767-200ER (PW4060), 32C, 168Y PAX, 1 YEAR LEASED, RECEIVED 90 MINUTES, EXTENDED TWIN ENGINE OPERATIONS (ETOPS) AT ENTRY INTO SERVICE. 75 MINUTES (ETOPS) APPROVAL WAS GAINED FOR 737-200S. 1 IL-76MD (D-30KP) FROM AEROFLOT (ARO).
OCTOBER 1993: 747-400 (RT784), 382 PAX, 3 CLASS, "VULINDLELA" ("PATHFINDER") DELIVERY.
JUNE 1994: 22,000 MANHOURS ON CAMEROON AIRLINES (CAM) 737-200 CHECK.
AUGUST 1994: MAINTENANCE DIVISION IS NOW A SEPARATE COMPANY (HANGARS & SHOPS) UNDER TOM BOTHA. ENGINEERING & PUBLICATIONS ARE STILL UNDER SOUTH AFRICAN AIRWAYS (SAA).
(SAA) ACCEPTED MASTER CHANGE (MC) FROM BOEING (TBC) TO CHANGE ENGINES (JT9D-7Q) TO (JT9D-7R4G2) = +10% FUEL COST SAVINGS.
JUNE 1995: (FAA) RATES SOUTH AFRICAN REGULATORY AUTHORITY AS ACCEPTABLE RE-INTERNATIONAL SAFETY OVERSIGHT, SO IS OK FOR CATEGORY 1.
JULY 1995: 1994 = +$64.57 MILLION (PROFIT SHARING BONUS TO EMPLOYEES).
1 747-300 ("SHOSHOLOZA") (WORK SONG, SUNG WHEN SOUTH AFRICA WON RUGBY WORLD CUP RECENTLY), EX-SINGAPORE AIRLINES (SIA), LEASED.
OCTOBER 1995: 1995 FISCAL YEAR (FY) = +$60 MILLION (-$6.3).
NOVEMBER 1995: MAINTENANCE CONTRACT FOR COMAIR (CML) 737'S.
NEW ROUTE: SAO PAULO, BUENOS AIRES (747-300). CONSIDERING LOS ANGELES (LAX), VIA MIAMI (MIA), OR BRAZIL.
$1.3 BILLION, 2 ORDERS 747-400'S & 4/3 ORDERS (1997) 777-200'S (LONG RANGE (LR) VERSION).
DECEMBER 1995: CODE SHARE WITH LUFTHANSA (DLH) TO FRANKFURT, MUNICH & DUSSELDORF FROM JOHANNESBURG & CAPE TOWN. ALSO, NAIROBI TO FRANKFURT (747-200F).
JANUARY 1996: 1 747-300 (JT9D-7R4G2), EX-SINGAPORE (SIA).
APRIL 1996: CODE SHARE WITH AMERICAN AIRLINES (AAL) TO NEW YORK (JFK), MIAMI (MIA), & LOS ANGELES (LAX).
MUTUAL ASSISTANCE AGREEMENT WITH CATHAY PACIFIC (CAT) & EMIRATES (EAD) & POSSIBLY SINGAPORE AIRLINES (SIA), TO SHARE RESOURCES, PEOPLE, & EXPERTISE IF EITHER EXPERIENCES ANY EMERGENCY, AWAY FROM THEIR HOME BASE.
JUNE 1996: NEW ROUTE TO GHANA.
NEW GOVERNMENT MINISTER IS HOLDING UP 747/777 DEAL = LOST DELIVERY SLOTS.
HEAVY MAINTENANCE CONTRACT, ON CAMEROON (CAM) 747. POSSIBLE SALE OF 25% TO LUFTHANSA (DLH).
JULY 1996: LAST QUARTER = -100 MILLION RAND (HARD HIT BY CURRENCY FALL OF THE RAND (-20%). MARKETING AGREEMENT WITH JET AIRWAYS (JPL) FOR NOVEMBER 1996.
SEPTEMBER 1996: NEW EMPHASIS ON ROUTES WITHIN AFRICA WITH ABIDJAN, IVORY COAST; ACCRA, GHANA. NOW 15 DESTINATIONS WITHIN AFRICA AND THE INDIAN OCEAN = 20% GROWTH.
NO GOVERNMENT DECISION ON +2 ORDERS 747-400'S, & 7 ORDERS 777'S. ZUKILE NOMVETE, TRANSNET EXECUTIVE DIRECTOR IN CHARGE OF SOUTH AFRICAN AIRWAYS (SAA), SAYS "HIGHLY LIKELY" OK FOR 747-400'S (RR), BUT 777'S ORDERS ARE DECREASED.
OCTOBER 1996: TO STOCKHOLM WITH FREIGHTER (A300F, 36 TON CAPACITY) STOPPING AT HARARE FOR FUEL. AIRLINES FLYING INTO SOUTH AFRICA, REPORT 20% CARGO GROWTH, EXPORTS FASTER THAN IMPORTS.
TECHNICAL WORKERS GO ON STRIKE. AFFECTED FLIGHTS & 24 AIRPLANES GROUNDED.
WET-LEASED 2 747'S TO WORLD AIRWAYS (WLD), 2 747'S TO TOWER (TOW) & 1 DC-10 TO ICELANDAIR (ICE).
CODE SHARE WITH AMERICAN (AAL), JOHANNESBURG & CAPE TOWN TO USA. CODE SHARE WITH EMIRATES (EAD) TO DUBAI, VIA NAIROBI = +94% (RPK) TRAFFIC IN THIS ROUTE IN 1ST 6 MONTHS 1996.
1996 = 8.56 BILLION (RPK) PASSENGER TRAFFIC (#38 HIGHEST IN WORLD).
JANUARY 1997: ALTHOUGH 777 SALE STILL IN LIMBO, OK FOR +2 747-400'S (MAY & SEPTEMBER 1998) (RB211-524) WITH TRENT 04 MODULES.
MARCH 1997: NEW ROUTES TO MIAMI FROM CAPE TOWN, & TO COPENHAGEN, VIA FRANKFURT, IN JULY 1997. TO OSAKA, VIA BANGKOK, CODE SHARE WITH THAI INTERNATIONAL (TII), & CODE SHARE WITH JAPAN AIR LINES (JAL) TO TOKYO.
NEW CORPORATE IMAGE, AND NEW LIVERY "HORIZON MARK" REPAINTED WHITE, WITH MULTI-COLORED TAIL, WITH GOLDEN ARROW SIGNIFYING PRECISION, DROPPED (SAA), NOW "SOUTH AFRICAN" - INSPIRING, SPIRITED, PROUD, AND WORLD-CLASS.
JUNE 1997: 747SP (RG122) RETURNED FROM LEASE TO PANAIR (PNR).
JULY 1997: 11,200 EMPLOYEES.
CODE SHARE WITH SCANDINAVIAN AIRLINES (SAS) FROM CAPE TOWN TO COPENHAGEN (747). CODE SHARE WITH JAPAN AIRLINES (JAL), TO OSAKA, VIA BANGKOK (747-200, 16 FIRST (F), 47 BUSINESS (C), 232 ECONOMY (Y) GIVING (JAL) 2F, 8C, 60Y.
FISCAL YEAR (FY) 1996 = -$79.18 MILLION (+$42.02 MILLION).
2 767-200ER (JT9D-7R4), EX-EGYPTAIR (EGP).
TOM BOTHA & DR THIENS KRUGER PUT TO WORK ON 8 MONTHS, FULL TIME, ON "OPERATIONS CLEAN-UP" TO CUT OPERATING EXPENSES.
AUGUST 1997: SAKI MACOZOMA, TRANSNET MANAGING DIRECTOR WAS PLEASED THAT SOUTH AFRICAN AIRWAYS (SAA) LOSSES WERE LESS THAN LAST YEAR.
SEPTEMBER 1997: TRAFFIC TO SOUTH AFRICA AIRWAYS HAS GROWN SINCE NEW DEMOCRATIC GOVERNMENT: NUMBER OF AIRLINES 1991 - 1994 GREW FROM 18 - 47 (WITH 24 FROM WITHIN AFRICA) FOR TOTAL >80 FOREIGN AIRLINES.
JOHANNESBURG (JNB) IS BUSIEST AIRPORT IN AFRICA: 1995 = 6.6 MILLION PASSENGERS, 1996 = 7.9 MILLION. CAPETOWN 1996 = 3.4 MILLION PASSENGERS.
OCTOBER 1997: 1 YEAR USA DEPARTMENT OF TRANSPORTATION (DOT) EXEMPTION TO USE FRANKFURT, GERMANY AS INTERMEDIATE POINT ON SCHEDULED ALL-CARGO SERVICE TO NEW YORK. 5TH FREEDOM RIGHTS ALLOW BLOCKED SPACE FOR LUFTHANSA (DLH), FRANKFURT TO NEW YORK.
PLANS FOR +2 747-400'S IN 1998 WITH 1ST IN MAY 1998 & 2ND IN OCTOBER 1998. 7 ORDERS 777'S UNKNOWN.
A300B4-203 (222) WET-LEASED TO PHILIPPINE AIRLINES (PAL).
NOVEMBER 1997: 747-244B (20238 "DRAKENSBERG") DELIVERY. 5 YEAR 300 MILLION RAND MAINTENANCE CONTRACT FOR COMAIR (CML) 6 737-200'S, INCLUDING ENGINEERING.
DECEMBER 1997: USA DEPARTMENT OF TRANSPORT (DOT) OK'S CODE SHARE WITH AMERICAN AIRLINES (AAL), JOHANNESBURG/CAPE TOWN TO TAMPA, BALTIMORE, PITTSBURGH, RALEIGH/DURHAM, NEW ORLEANS, CLEVELAND, SAN DIEGO, C0LUMBUS, JACKSONVILLE, SAN JUAN, & BUFFALO TO SOUTH AFRICAN'S (SAA)'S GATEWAYS AT NEW YORK (NY) & MIAMI (MIA). HAS BEEN SUCCESSFUL IN EXPANDING AFRICAN ROUTES TO GHANA AND THE IVORY COAST. LAGOS TO BE ADDED IN APRIL 1998, AND OTHERS SUCH AS MUMBAI AND TEL AVIV.
"C" CHECK MAINTENANCE CONTRACT FOR CAMEROON AIRLINES (CAM) 747-200 (22378). 2ND 767-266ER, EX-EGYPTAIR (EGP) DELIVERY.
JANUARY 1998: 1 747-200F (22245), SOUTHERN AIR TRANSPORT (STT) WET-LEASED.
FEBRUARY 1998: CONFIRMS 1 0RDER (1998) 747-400 (RR).
APRIL 1998: DELAYS SEPARATE CORPORATION, BUT MAY NOT DELAY PRIVATIZATION BY THE END OF 1998.
747SP RECENTLY RETURNED FROM AIR NAMIBIA (NAM), IS BEING PARTLY USED BY (LAM) MOZAMBIQUE, FOR MAPUTO - LISBON, VIA JOHANNESBURG, ON CODE SHARE, WITH (LAM) CREWS.
MAY 1998: TO DAKAR, SENEGAL.
PRIVATIZATION TO BE DELAYED UNTIL MARCH 1999.
JUNE 1998: COLEMAN ANDREWS, PRESIDENT & CEO, 43, EX-WORLD AIRWAYS (WLD) CHAIRMAN, REPLACES MIKE MYBURGH.
ADDED ROUTE TO ABIDJAN - DAKAR.
AUGUST 1998: TOM BOTHA, HEAD OF TECHNICAL (ENGINEERING & MAINTENANCE) RESIGNS.
7TH 747-400 (RB211-524G/H-T, 58 TO 60,000 LB THRUST) DELIVERY. NEW ENGINES TO BE RETROFITTED TO OTHER 747-400'S FOR REDUCED FUEL BURN, AND EXCELLENT ON-WING LIFE.
SEPTEMBER 1998: MAFIKE MKWANANZI, DEPUTY MANAGING DIRECTOR, TRANSNET PARENT COMPANY, ANNOUNCES PRIVATIZATION DELAYED TIL MAY 1999.
FISCAL YEAR (FY) 1997 = -$64.24 MILLION (NET LOSS).
A300B2K-3C (039) PAINTED WITH CHILDRENS' GREETING CARDS TO SUPPORT PREMIER NELSON MANDELA'S CHILDRENS FUND AND NAMED "THE LOVE PLANE."
OCTOBER 1998: DIETER KLEINEN, VP & GENERAL MANAGER TECHNICAL, FORMS STRATEGIC ALLIANCE, INCLUDING CODE SHARE WITH SINGAPORE AIRLINES (SIA), GOING INTO EFFECT IN APRIL 1999.
NOVEMBER 1998: 747-444 (29119) DELIVERY.
DECEMBER 1998: CODE SHARE WITH NIGERIA AIRWAYS (NIA) TO LAGOS (A310).
1 747-212F (JT9D-7R4G2) (24177), EX-SOUTHERN AIR TRANSPORT (STT), FINOVA 5 YEAR LEASED.
JANUARY 1999: IN APRIL 1999, SERVICE TO SINGAPORE WITH ALLIANCE PARTNER SINGAPORE AIRLINES (SIA).
COMPLETES "D" CHECK, & STRUT MODIFICATION AHEAD OF SCHEDULE, ON LUFTHANSA (DLH) 747-200 (RD182). (DLH) IS PLEASED WITH QUALITY & PERFORMANCE, SO XMAS BONUS OF 500 RAND, PAID TO 2,000 TECHNICAL DIVISION EMPLOYEES.
2 747-400'S (28959; 28960) ORIGINALLY INTENDED FOR PHILIPPINE AIRLINES (PAL). WILL RETIRE 747SP'S BY APRIL 1999. 1 AT MAPUTO WILL PROBABLY BE SCRAPPED.
FEBRUARY 1999: "OFFICIAL AIR LINES (OAG) WORLDWIDE" AWARDS SOUTH AFRICAN AIRWAYS (SAA) "1998 BEST AFRICAN AIRLINE."
JOHAN BLIGNAUT, HEAD ENGINEERING. WOLF GOLLNITZ, MANAGER AVIONICS ENGINEERING TO RETIRE NEXT MONTH. ANDRE DIPPENAAR, MANAGER COMPONENT SHOPS. JEFF UYS, MANAGER POWERPLANT OVERHAUL SHOPS. KEVIN KRUGER, MANAGER MAJOR MAINTENANCE; HELMUT STOBELE, MANAGER MINOR MAINTENANCE. HENK VERBOOY, PROJECTS MANAGER. JORGE DUARTE, HEAD CUSTOMER DEVELOPMENT & SUPPORT. JOHAN LOURANS, MANAGER MAINTENANCE PROGRAM PLANNING.
2ND LUFTHANSA (DLH) 747-200, "D" CHECK & STRUT MODIFICATION, IN WORK. TO BE FOLLOWED BY STRUT MODIFICATION & "D" CHECK, NEXT MONTH, ON CAMEROON AIRLINES (CAM) 747-200C.
APRIL 1999: ADDS GHANA AIRLINES (GHN) TO ALLIANCE WITH AIR NAMIBIA (NAM), SOUTH AFRICAN EXPRESS, SOUTH AFRICAN AIRLINK, AND KALAHARI EXPRESS AIRLINES.
CODE SHARE WITH BRITISH MIDLANDS (BMA), VIA LONDON HEATHROW TO 6 DESTINATIONS IN BRITAIN AND IRELAND.
MAY 1999: LONG TERM PARTNERSHIP, INCLUDING CODE SHARE, WITH CATHAY PACIFIC (CAT).
JUNE 1999: NEGOTIATIONS AS ONLY BIDDER FOR 49% OF UGANDA AIRLINES (UGA). (UGA) REJECTS SOUTH AFRICAN AIRWAYS (SAA) OFFER.
SWISSAIR (SWS) PARENT, SAIRGROUP, BUYS 20% OF SOUTH AFRICAN AIRWAYS (SAA), FOR $231 MILLION, INCLUDING 15 WIDE BODY AIRPLANES TO (SAA) FOR HEAVY MAINTENANCE, EXPORT OF (SWS) "FAMOUS" APPRENTICESHIP SCHEME, TRAINING FOR 10 TOP EXECUTIVES, 50 MIDDLE MANAGEMENT, & 18% INTEREST TO 6 TO 7% FOR AIRPLANE PURCHASES.
1998 TOP WORLD AIRLINES TRAFFIC (RPM) (BILLION):
30 VAA 12.27; 31 SVA 11.69; 32 ASA 11.27; 33 ANZ 11.15; 34 ANS 10.14; 35 SAA 9.85; 36 SAB 9.53; 37 BEJ 9.07; 38 JAS 8.77; 39 THY 8.10; 40 EAD 8.07.
747SP (JT9D-7FW) (21134), 6 MONTH LEASED TO AIR NAMIBIA (NAM).
AUGUST 1999: PURCHASES 75% OF ASSETS OF SUN AIR (SUQ), SOUTH AFRICA'S 3RD-LARGEST AIRLINE, AFTER IT STOPPED OPERATIONS, AND WAS LIQUIDATED.
SOUTH AFRICAN AIRWAYS (SAA) PARENT, TRANSNET FISCAL YEAR (FY) 1998 = -426 MILLION R. (SAA) = +51 MILLION R.
KEVIN WILSON, MANAGING DIRECTOR TECHNICAL & CARGO, REPLACES DIETER KLEINEN, EX-BAIN CONSULTANTS (SAME AS COLEMAN ANDREWS).
POSSIBLE RETURN OF 767 TO (LAM) MOZAMIQUE, IN OCTOBER 1999. CURRENTLY WET-LEASING 747SP TO (LAM), FOR MAPUTO - LISBON FLIGHTS.
SEPTEMBER 1999: "COOPERATIVE AGREEMENT" WITH AIR FRANCE (AFA) FOLLOWING DEMISE OF SUN AIR (SUQ), FOR CONNECTIONS AT JOHANNESBURG. SWITCHES CODE SHARE FROM AMERICAN AIRLINES (AAL), TO DELTA AIRLINES (DAL), AND JOHANNESBURG TO MIAMI, IS CHANGED TO ATLANTA.
OCTOBER 1999: GOVERNMENT REJECTS SOUTH AFRICAN AIRWAYS (SAA) ACQUIRING 75% OF SUN AIR (SUQ).
747-200F (22170) BEING OPERATED BY MK AIRLINES (MKA) OUT OF GHANA. 747-212F (24127) RETURNED TO FINOVA (GRB), LEASED TO NORTHWEST AIRLINES (NWA). 747SP-44 (21263) GROUNDED AT MAPUTO FOLLOWING A FIRE, IS NOW SCRAPPED.
NOVEMBER 1999: FISCAL YEAR (FY) 1998 = +$8.8 MILLION (-$60.1 MILLION): 9.85 BILLION (RPM) TRAFFIC (+5.1%), 1.16 BILLION (FTM) FREIGHT TRAFFIC (-3.2%).
JANUARY 2000: STARTS CAPE TOWN - JOHANNESBURG - ATLANTA (747-400).
FEBRUARY 2000: TO FORM SEPARATE SOUTH AFRICAN AIRWAYS (SAA) TECHNICAL DEPARTMENT BY APRIL 2000.
9,885 EMPLOYEES. (http://www.saa.co.za).
12-YEAR CONTRACT TO SWISSAIR'S (SWS) INFORMATION TECHNOLOGY (IT) UNIT, ATRAXIS, TO MANAGE ALL (SAA)'S (IT) ACTIVITIES.
MARCH 2000: $700 MILLION, 21/20 ORDERS 737-800'S. 18 WILL BE SUPPLIED BY SAIRGRP (SWS) FLIGHTLEASE. ALL WILL HAVE WINGLETS. AS PART OF DEAL, (SAA) WILL TRADE IN 7 A320'S TO FLIGHTLEASE (FLL). RETURNED 767-2B1ER (24671) TO (LAM) MOZAMBIQUE. 747-244F (22120) SOLD TO MK AIRLINES (MKA).
APRIL 2000: ABANDONS ATTEMPT TO BUY UGANDA AIRLINES (UGA), & (UGA) WILL BE LIQUIDATED.
WOLF GOLLNITZ, MANAGER AVIONICS, RETIRES.
HUBS: CAPE TOWN, DURBAN.
MAY 2000: 3 MD-80'S, EX-SUN-AIR (SUQ), SAFAIR (SFA) WET-LEASED.
JUNE 2000: PLANS TO BECOME 1ST PAN-AFRICAN CARRIER WITH POTENTIAL HUBS IN ACCRA, GHANA IN THE WEST, AND NAIROBI, AND ENTEBBE, IN THE EAST.
3 YEAR-LONG FORECAST PLANS FOR INCREASED 3RD PARTY HEAVY MAINTENANCE WITH "D" CHECKS, ON 20 747'S (MOST FOR LUFTHANSA (DLH), "D" CHECKS ON 11 MD-11'S (SWS)'S, & "D" CHECKS ON +20 737'S. THESE ARE OVER & BEYOND THE 31 "D" CHECKS, CURRENTLY SCHEDULED ON THEIR EXISTING CUSTOMER AIRPLANES, AND THEIR OWN (SAA) FLEET.
SECURES GOVERNMENT APPROVAL FOR AN OPTION OF +20 737-700/-800/-900'S, FITTED WITH WINGLETS. SOLD 13 737-200'S TO SAFAIR (SFA) AND LEASED BACK FOR 66 MONTHS.
JULY 2000: 3 737-800'S (CFM56-TB2) (737-8S3: 29248, ZS-SJA; 737-85F: 28828, ZS-SJC; 28829, ZS-SJD) DELIVERIES.
AUGUST 2000: IN NOVEMBER 2000, CODE SHARE WITH NIGERIA AIRLINES (NIA), LAGOS - NEW YORK (JFK) (SOUTH AFRICAN AIRWAYS (SAA) 747-300).
BHEKI SIBIYA, CHAIRMAN, REPLACES MAFIKA MKWANAZI, NOW MANAGING DIRECTOR OF TRANSNET.
SEPTEMBER 2000: TO RETROFIT HEADS UP DISPLAY (HUD), BY SUPPLEMENTAL TYPE CERTIFICATE (STC), IN ALL 737-800'S USING B AE SYSTEMS.
1 737-236, EX-LANCHILE (LAN). 2 747-3B7'S, EX-SWISSAIR (SWS). 1 737-85F (28830, ZS-SJE), GATX LEASED & 1 737-8S3 (29249, ZS-SJB), FLIGHTLEASED (FLL).
OCTOBER 2000: PLANS TO TAKE A 40% STAKE IN ZIMBABWE EXPRESS (ZIE), WHICH CEASED OPERATIONS IN 1999.
PLANS SERVICE TO TEHERAN. TO LIVINGSTONE AND LUSAKA. DELAYS ITS LAGOS - NEW YORK (JFK) (747-300) NIGERIA AIRLINES (NIA) CODE SHARE LAUNCH.
737-85F (30006, ZS-SJF) DELIVERY. A300B2K-3C (039) PARTED OUT.
NOVEMBER 2000: IN JANUARY 2001, CODE SHARE WITH QANTAS AIRWAYS (QAN) TO PERTH.
ANDRE DIPPENAAR, VP COMPONENTS & POWERPLANTS, LEFT THE COMPANY AT DIRECTION OF KEVIN WILSON, PRESIDENT/CEO TECHNICAL.
1 737-236 (21792, ZS-SIO), SAFAIR (SFA) LEASED. 1 737-8S3 (32353, ZS-SJG) DELIVERY. 2 747-357B'S (22995, ZS-SKB; 22996, ZS-SKA), (GEF) LEASED, EX-SWISSAIR (SWS), FLIGHTLEASED. 1 737-230 (22116, /81 43 41 N392AS), EX-LUFTHANSA (DLH)/(ASM)/CROATIA AIRLINES (CRH), SAFAIR (SFA) LEASED.
DECEMBER 2000: CAPTAIN JANE TREMBATH, 1ST SOUTH AFRICAN AIRWAYS (SAA) WOMAN CAPTAIN (FC).
737-8BG (32354, ZS-SJH) DELIVERY. A320-231 (251) SOLD TO (GAX). A300B4-203 (138) TO ONUR AIR (ONU). 737-236 (22026), SAFAIR (SFA) LEASED. A320-231 (440) TO GATX (GAX).
JANUARY 2001: RINESH RAMKISSOON, VP COMPONENTS AND POWERPLANTS.
TOP WORLD AIRLINES 2000 TRAFFIC (RPM) (BILLION):
29 ANZ 13.81; 30 SVA 12.57; 31 EAD 12.06; 32 SAB 12.04; 33 SAA 12.01; 34 ASA 11.98; 35 BEJ 11.26; 36 ANS 10.63; 37 THY 10.2.
2 737-85F'S (30007, ZS-SJI; 30567, ZS-SJJ), GATX (GAX) LEASED.
FEBRUARY 2001: 1 747-300 WET-LEASED TO NIGERIA AIRLINES (NIA) FOR LAGOS - NEW YORK (JFK).
ANDRE VILJOEN, CEO, EFFECTIVE APRIL 2001, TO REPLACE COLEMAN ANDREWS, WHO RESIGNED 1 YEAR BEFORE END OF HIS CONTRACT, BEFORE SOUTH AFRICAN AIRWAYS (SAA) ENTERS ITS PRIVATIZATION PROCESS. DON NCUBE, CHAIRMAN, REPLACES BHEKI SIBIYA.
MARCH 2001: ANNOUNCES IT WILL OPERATE A SPECIALLY CHARTERED 747-400 IN NOVEMBER 2001, TO FLY AROUND THE WORLD, OVER BOTH NORTH & SOUTH POLES, COMMENCING AT NEW YORK (JFK), IN AN EFFORT TO BREAK OLD RECORD OF 54 HOURS, 7 MINUTES, 12 SECONDS SET IN 1977, BY AT LEAST 2 HOURS 56 MINUTES.
1 737-800 (CFM56-7B27) (32355, ZS-SJK) DELIVERY.
APRIL 2001: 9,014 EMPLOYEES.
RECEIVES "BEST AIRLINE BASED IN AFRICA" AWARD, FROM (OAG).
2000 FISCAL YEAR (FY) = +$50M (NET PROFIT).
1 737-8BG (819-32356, PH-HZZ), WET-LEASED TO TRANSAVIA (TAV). 1 A320-231 (243, ZS-SHA), RETURNED TO (GAX).
MAY 2991: JAN BLAKE, PRESIDENT & CEO, SOUTH AFRICAN AIRWAYS (SAA) TECHNICAL (ACTING) REPLACES KEVIN WILSON, WHO RESIGNED. VINCE RASEROKA, CHAIRMAN (SAA) TECHNICAL. DAY-TO-DAY OPERATIONS UNDER DANIE BRITS.
"D" CHECK ON 747-200 (ZS-SAM, /71 101,719 HRS). A320-231 (250) RETURNED TO (GAX).
JUNE 2001: SITA TAKES OVER 11-YEAR, ATRAXIS AFRICA (FORMERLY SWISSAIR) CONTRACT, TO DESIGN/IMPLEMENT, AND MANAGE, INFORMATION TECHNOLOGY (IT) INFRASTRUCTURE, FOR SOUTH AFRICAN AIRWAYS (SAA).
JULY 2001: 2 737-236'S (662-22029, /80), EX-LADECO (LDE), (GEF) 5 YEAR LEASED. 1 A320-231 (335) RETURNED TO (GAX).
AUGUST 2001: VINCENT RASEROKA, EXECUTIVE VP & CEO, SOUTH AFRICAN AIRWAYS (SAA) TECHNICAL. TLELI MAKHETHA, VP & GENERAL MANAGER CARGO.
A320-231 (334) RETURNED TO (GAX). 1 737-8BG (918-32357, ZS-SJO) DELIVERY.
SEPTEMBER 2001: FY 2000 = -#735M RAND WITH SALE OF ASSETS EXCLUDED. WHEN INCLUDED, = +#408M RAND: 67% LF (LOAD FACTOR) (+5); SOLD 747F IN 2000.
SWISSAIR (SWS) WILL LIKELY SELL ITS 20% STAKE, IN SOUTH AFRICAN AIRWAYS (SAA).
NOW HAS TWO FEMALE, PILOT CAPTAINS, AND BOTH FORMED AN ALL-WOMAN CREW ON A 737-200 FLIGHT. ALSO, HAS 1ST BLACK CAPTAIN MPHO MANASHELA, WHO IS FROM SWAZILAND.
737-8BG (955-32358, ZS-SJP), FLIGHTLEASED (FLL). IN 2001, SOUTH AFRICAN AIRWAYS (SAA) SOLD ITS ENTIRE FLEET OF 13 737-200'S, AND ENTIRE FLEETS OF 8 A300'S, AND 7 A320'S.
OCTOBER 2001: RESUMES SERVICE TO FORT LAUDERDALE.
737-8BG (32356) RETURNED FROM TRANSAVIA (TAV).
NOVEMBER 2001: GOVERNMENT BUYS BACK 20% STAKE IN SOUTH AFRICAN AIRWAYS (SAA), FROM SWISSAIR (SWS). THIS MEANS (SAA) IS EFFECTIVELY RENATIONALISED.
(SAA) LAUNCHES http://www.saabiz.co.za AN ONLINE BOOKING SERVICE FOR BUSINESS (C) TRAVEL.
DECEMBER 2001: PLANS SERVICE TO MILAN MALPENSA (MXP) (3/WEEK).
1 YEAR MAINTENANCE CONTRACT, FOR AIR SEYCHELLES (ASY) 737-700.
JANUARY 2002: PLANS TO ESTABLISH A HUB IN EAST AFRICA, AND A HUB IN WEST AFRICA, IN COOPERATION WITH OTHER AFRICAN AIRLINES, WHICH WILL BE LINKED TO JOHANNESBURG. ITS INTRA-AFRICAN SERVICES ARE FAR MORE PROFITABLE, THAN ITS INTERCONTINENTAL NETWORK, WHICH IS INCREASINGLY COSTLY, AND OPERATED IN A HIGHLY COMPETITIVE MARKETPLACE.
2001 TOP 50 WORLD AIRLINES - TRAFFIC B RPM
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
BASES 767-200 IN MALI, FOR THE AFRICAN CUP OF NATIONS FOOTBALL (SOCCER) TOURNAMENT, TO OPERATE BETWEEN THE VARIOUS VENUES.
MARCH 2002: ISMAIL RANDEREE, SENIOR MANAGER, (SAA) TECHNICAL OPERATIONS, REPLACES DANIE BRITZ.
SOUTH AFRICAN AIRWAYS (SAA) TECHNICAL, SIGNS #R150M DEAL, TO MAINTAIN 2 747'S, FOR TAAG ANGOLA (ANG).
$3.5B, 11 ORDERS A319-100'S, 124 PAX; 15 ORDERS A320-200'S, 150 PAX; 6 ORDERS A340-300'S (CFM56-5C/P), 295 PAX, AND 9 ORDERS A340-600'S (TRENT 500), 380 PAX. WILL EQUIP THE A340-300'S WITH THE ADVANCED (CFM56-5C/P)'S TO LAUNCH THIS NEW POWERPLANT WHICH HAS A HIGH-PRESSURE COMPRESSOR AND TURBINE DESIGNED WITH ADVANCED, 3-D AERODYNAMICS, AND A NEW STAGE ONE, LOW-PRESSURE TURBINE NOZZLE. COMPARED WITH THE (CFM56-5C4), THE NEW ENGINE OFFERS A 1% IMPROVEMENT IN (SFC) AND A 13 DEGREE C INCREASE IN (EGT).
APRIL 2002: IN 10/02, TO COPENHAGEN (3/WEEK NONSTOP).
(TELEPHONE: +27 (11) 978 1127). (FAX: +27 (11) 978 1126).
MAIN BASE: JOHANNESBURG JAN SMUTS INTERNATIONAL (JNB).
HUBS: CAPE TOWN INTERNATIONAL (CPT); & DURBAN LOUIS BOTHA INTERNATIONAL (DUR).
MAY 2002: IN JULY 2002, NEW ROUTE TO NEW YORK, VIA SENEGAL, WITH POSSIBLE CODE SHARE, WITH AIR SENEGAL INTERNATIONAL (SNG).
July 2002: 2001 = +$50.85M (+$53.33M): 20.43B RPK (+5.9%); 67.3% LF; 6.76M PAX (+12.3%); 734.92 (+8.5%); 10,202 EMPLOYEES (+.4%).
September 2002: In October 2002, to Addis Ababa (2/week). In January 2003, to Dakar - New York (JFK) (2/week). Code share with Delta Airlines (DAL), to Entebbe.
October 2002: Takes 49% of Air Tanzania (TNZ) for $20M, that marks a milestone in South African Airways (SAA)'s strategy of expanding its network in Africa, through regional hubs, in the eastern, western, and southern parts of Africa.
Code share with Thai Airways International (TII), to Bangkok. (SAA) cargo, to Blantyre/Lilongwe (737-200F, 2/week).
November 2002: British Midland (BMA)to wet-lease 2 A330-200's (401, G-WWBD; 404, G-MDBD) to South African Airways (SAA) in 12/02, 1 for a year, and the other for 5 months. Airplanes will be used on Johannesburg, to Milan, and Paris routes.
As part of Airbus airplane orders, Airbus establishes a new international industrial standards certification and training center specializing in non-destructive testing (NDT), at the Council for Scientific & Industrial Research (CSIR), Pretoria.
In 1/03, "D" check & section 41 on Saudi Arabian (SVA) 747 (HZ-AIP).
737-844 (1225-32633, ZS-SJT), delivery.
December 2002: In 1/03, To Dakar - New York (JFK) (747-400, 2/week), in cooperation with Air Senegal International (SNG).
2 737-236's (670-21892, ZS-SIN; 669-21891, SZ-SIS), returned to (SFA), leased to Comair (CML). 2 A340-642's (410, ZS-SNA; 417, ZS-SNB) deliveries.
January 2003: Initially used on domestic services, will then be assigned for service to Frankfurt and Hong Kong.
February 2003: (SAA) and Crown Aviation have won the bid to purchase between 60% and 70% of Air Malawi (AML).
1 737-800 to be wet-leased 6 months to Excel Airways (SBE) in 5/03. 1 + 4 orders A340-211's (008), ex-(DLH), Airbus leased. A340-642 (426, ZS-SNC) delivery.
March 2003: Vincent Raseroka, head of Information Technology (IT), resigned.
2 737-236's (22029; 22031) wet-leased to Air Tanzania (TNZ).
April 2003: Johannesburg - Windhoek.
10,202 employees. (http://www.saa.co.za). (firstname.lastname@example.org).
737-8BG (918-32357, PH-HZS), leased to Transavia (TAV) for 5 months.
June 2003: 10,310 employees.
July 2003: 2002 Fiscal Year (FY) = +$14.05 Million (+$15.82 Million): 21.28 Billion (RPK) traffic (+4.1%); 68.8% LF load factor; 6.36 Million passengers (PAX) (+3.8%); 762.01 Million (FTK) freight (+3.7%); 11,201 employees (+9.8%).
TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
28 (VAR) 26.12; 29 (BEJ) 24.00; 30 (SAS) 23.21; 31 (CSR) 22.37; 32 (GUE) 21.90; 33 (ANZ) 21.48; 34 (SAA) 21.28; 35 (ASA) 21.23; 36 (SVA) 20.80; 37 (AAT) 19.93; 38 (EVA) 19.51; 39 (CEA) 18.63.
A340-211 (018, ZS-SLC), Airbus (AFIS) leased.
August 2003: Will provide 6 747-300's to transport South African Muslim pilgrims to Jeddah, during the annual hadj pilgrimage between December 2003 and February 2004.
A340-211 (019, ZS-SLD), (AFIS) leased.
September 2003: Code share with Air Tanzania (TNZ) to Johannesburg, Dar Es Salaam, Cape Town, Durban, Zanzibar, and Kilimanjaro. In October 2003, will operate its New York service via Dakar, instead of Sal, Cabo Verde. 4 of the 7 weekly flights will return nonstop to Johannesburg, with 3 of them stopping in Dakar. Flights to Atlanta will continue to stop in Sal.
737-8BG (32357) returned from Transavia (TAV). 737-844 (1383-32634, ZS-SJU) delivery. Will donate 747-200B (ZS-SAN, "Lebombo") to the South African Airways (SAA) Museum Society in December 2003 for display at Rand Airport, Germiston, where the museum is moving its collection. 747-357 (585-22995, ZS-SKB) returned to Shawmut Bank. 2 A330-200's, TAM Brazil (TPR) wet-leased for flights to Paris and Zurich.
October 2003: A340-211 (006, ZS-SLE), Airbus (AFIS) leased.
November 2003: Oyama Mabandla, Deputy CEO, Andile Mabizela, Executive VP Commercial, Johan van Jaarsveld, Executive VP Customer Services, Nolwazi Qata, Executive VP Human Resources, Rinesh Ramkissoon, Executive VP sSouth African Airways (SAA) Technical, & Vuyisile Kona, Executive VP Subsiaries.
Code share with Ethiopian Airlines (ETH), Addis Ababa - Johannesburg.
737-8BG (955-32358, ZS-SJP), returned from Excel Airways (SBE).
December 2003: 747-344 (22970) leased to Air Atlanta Icelandic (AID). 747-357 (22996) returned to Shawmut Bank (Trustee).
January 2004: 2 A340-642's (547, ZS-SNF; 557, ZS-SNG) deliveries.
February 2004: South African Airways (SAA) celebrates its 70th anniversary!
In August 2004, Cape Town - Frankfurt (3/week).
Government appoints Tryphosa Ramano, CFO, a former director of the National Treasury.
Signed multiyear agreement with Shepherd Systems for access to the Shepherd Galaxy marketing info data tape processing services.
737-800 (ZS-SJP) to be leased for 6 months to Excel Airways (SBE) in 4/04. 747-244B (20239, ZS-SAN "Lebombo"), retired after 107,000 flight hours and 20,291 flight cycles, and donated to the (SAA) Museum Society at Johannesburg.
March 2004: Applies to join the Star Alliance under the sponsorship of Lufthansa (DLH), a founding member of Star. If accepted, would become the 15th member.
767-266ER (23180) returned to UT Finance. 1st A340-313X (544, ZS-SXA) delivery, 295 PAX.
April 2004: Is being recapitalized by its parent company Transnet to the extent of AR 6.1 Billion/$972 Million.
737-8S3 (32353, ZS-SJG) wet-leased to Excel Airways (SBE). 2 A340-313X's (582, ZS-SXB; 590, ZS-SXC) deliveries.
May 2004: Is expected to order 6 A380's to replace 747-400's on services to London.
747-312 (23031) withdrawn from use (WFU).
June 2004: (SAA) Technical, the largest airplane maintenance facility in Africa, launched a state of the art multi purpose docking system. "This multi purpose docking system is the only facility of its kind in the Southern Hemisphere, and entrenches us as a global player. It improves our service levels to South African Airways (SAA), our main customer and positions us to attract more foreign customers," said Rinesh Ramkissoon, (SAA) Technical Executive Vice President. This multi million rand investment has been designed to provide easy access on various types of airplanes, including 747s and A330 plus A340 airplanes, as well as MD-11s. This acquisition will significantly reduce the number of days needed to complete a "D" check. During a "D" maintenance check, an airplane undergoes stringent inspections, major modifications and structural repairs. The multi purpose docking system runs on rails and can be positioned to provide simultaneous access to most areas of the airplanes. Before, (SAA) Technical had to use stackers, or scaffolding, to reach the different areas of the airplanes. This took up to four days, whereas the multi purpose docking system can be positioned or removed within four hours.
As a further innovation, (SAA) Technical built interior workshops on the mezzanine level of hangar 8. These interlink with the docking system. It saves time and reduces damage due to unnecessary transportation. The avionics and sheet metal workshop and the paint shop have also been moved closer to hangar 8. "The docking system combined with the close proximity of the workshops is a world first," said Ramkissoon.
Star Alliance accepts South African Airways (SAA), (TAP) Portugal, and Blue 1 (Air Botnia) for membership. (SAA) will be inaugurated into Star in 2005.
In October 2004, code share (including reciprocal frequent flier program) with Virgin Atlantic (VAA), London to Johannesburg with connections to (SAA)'s destinations: Cape Town, Durban, Port Elizabeth, Mpumulanga, & Pilanesburg.
737-236 (21790) returned to Safair (SFA). A340-211 (006, ZS-SLF), ex-Lufthansa (DLH), Airbus (AFIS) leased.
July 2004: Oyama Mabandla, acting CEO, following the resignation of Andre ViljoenJOEN, President & CEO.
Is facing 2 lawsuits amounting to ZAR 275 Million/$46 Million over allegations that it conspired to take control of Sun Air (SUQ) to prevent Virgin Atlantic Airways (VAA) from buying it, then deliberately put it out of business.
August 2004: Cape Town - Frankfurt (3/week). In partnership with Trans Air Congo (TSG), Johannesburg - Brazzaville, Pointe Noire.
Fiscal Year (FY) 2003 = -ZAR 6.3 Billion/-$837.4 Million.
Khaya Ngqula, CEO, head of South Africa's Industrial Development Corporation.
(SAA) has a formidable female workforce including 30 female pilots (FC), amongst which is the airline's first female Captain, Jane Trembath. 31 female cadets are currently training to become pilots (FC).
1st A319 (2268, ZS-SFD) delivery. Order for 15 A320's to be canceled to recover $54M in pre-delivery payments and the other 16 will be leased. The A319's & A340-300E's will now be leased rather than purchased.
September 2004: 747-344 (22971, ZS-SAU) wet-leased to TAAG Angola (ANG). A319-132 (2281, ZS-SFE) delivery.
October 2004: Strategic regional alliance with Jet Airways (JPL) aimed at improving connections between each other's flights as well as codesharing and cooperating on baggage handling, check-in, and other technology. Political links between India and South Africa have been strengthened by a 3-way alliance with Brazil, while South Africa also has close business and cultural links with India thanks to its economically influential Indian population.
737-8BG (32357), returned from Transavia (TAV). A319-132 (2308, ZS-SFF), delivery.
November 2004: 737-8S3 (32353, ZS-SJG) returned from Excel Airways (SBE). A319-132 (2326, ZS-SFG), delivery.
December 2004: Signed an agreement to join the Star Alliance (SAL) in 2005.
A319-131 (2355, ZS-SFH) delivery.
January 2005: (SAA) has been separated from its parent transport company, Transnet, and now operates as a stand-alone government-owned entity.
Offered its 602 senior managers voluntary severance packages as part of strategy to save about 1.6B rand/$268.9M over 18 months on wages and other costs.
Cancels 15 orders A320-232's. A319-131 (2375), delivery.
February 2005: A319-131 (2379) delivery.
March 2005: In July 2005, Washington Dulles to Johannesburg (747-400, nonstop).
Disclosed that it only has 45 days' cash reserves.
A319-131 (2418, ZS-SFK) & 2 A340-313E's (646, ZS-SXE; 651, ZS-SXF) deliveries.
April 2005: Expects to be a full member of the Star Alliance (SAL) by April 2006.
Pre-tax 2004 = -8.7 Billion rand. Government had injected about 10 Billion rand of life support in 2nd half of 2004, but about 3 to 4 Billion rand is needed to recapitalize the company.
Kyrl Acton, CFO, ex-Aer Lingus (ARL)/LAN Airlines (LAN).
737-8BG's (32356; 32358), wet-leased to Transavaia (TAV). A319-131 (2438, ZS-SFL), delivery. A340-642 (626, ZS-SNH), delivery.
May 2005: A319-131 (2469, ZS-SFM), delivery and 2 A340-642's (594, ZS-SNI; 630), (ILF) leased.
June 2005: 11,201 employees.
A319-131 (2501, ZS-SFN) delivery.
July 2005: 2004 Fiscal Year = +966 Million Rand/+$140.6 Million (- 8.6 Billion Rand).
Johannesburg - Zanzibar.
August 2005: 14,476 employees (+18.4%).
Discussions with Airbus (EDS) about potential order for 7 A380's.
September 2005: United Airlines (UAL) and South African Airways (SAA) will begin codesharing this fall. Starting November 1, (SAA) will place its code on (UAL) domestic flights from Washington Dulles to San Francisco, San Diego, Seattle, Los Angeles, and Las Vegas. Subject to regulatory approval, the (UAL) code will appear on (SAA)'s Washington Dulles - Johannesburg service and its service within Africa, and between South Africa and Europe. (SAA) will become a fully integrated Star Alliance member in early 2006.
November 2005: African airlines struggling with implementing electronic or e-ticketing now have more hope to make the end of 2007 deadline as South African Airways (SAA) offers its experience in the field to help develop a step-by-step guide to accomplish this. A memorandum to this effect was signed at the 37th African Airlines Association (AFRAA) Annual General Assembly. The deadline to comply with e-ticketing has been set by the International Air Transport Association (IATA) and applies to all airlines across the world.
(SAA), who implemented e-ticketing in 2003, will offer its e-ticketing expertise and provide guidance to African carriers who are feeling the pressure of the looming date. "It is all about simplifying the business. Paperless travel is revolutionizing the airline industry and we all need to comply in order to ensure its survival and to provide cost effective options for our customers," said Khaya Ngqula, CEO. Khaya Ngqula was elected as the President of (AFRAA) at the end of 2004. Africa's leading carrier with SITA, (SAA)'s information technology (IT) supplier, will assist in developing a blue print offering a step-by-step guide to be used by (AFRAA) airline members in their efforts to implement e-ticketing. This will provide an ABC guide to assist carriers in converting to e-ticketing. The guide will take into consideration cost efficiencies, systems implementation and process standardization. A number of problems hampering implementation of e-ticketing for African carriers and solutions for those have been identified:
• Identifying technology solutions;
• Minimising implementation and activation costs;
• Defining methodology, including project management skills and processes that ensure success within a multi-disciplinary project;
• Standardising processes in line with global industry accepted norms, while providing for local market intricacies.
(IATA) (ITA) will provide standards and guidelines in line with best practice and provision of funding, while (AFRAA) will ensure airline participation and be the custodian of the blue print and roll out for the first four carriers. Christian Folly-Kossi, Secretary General of (AFRAA) commended (SAA) for its efforts to share its experience of e-ticketing and to assist with migrating in a cost effective manner.
December 2005: South African Airways (SAA) inaugurated nonstop service from Johannesburg to Zanzibar (Tanzania). The airline now operates 2 flights a week, on Tuesdays & Sundays, using an A319.
January 2006: United Airlines (UAL) and South African Airways (SAA), a future Star Alliance member, announced a code share and booking agreement covering (SAA) flights from Washington Dulles (IAD) to Johannesburg. (UAL) customers also will be able to connect from Johannesburg to other South African markets or onto (SAA) flights from London, Frankfurt and Paris to South Africa. (SAA) customers will be able to connect and book United (UAL) flights from Washington Dulles to Chicago, Las Vegas, Los Angeles, San Diego, San Francisco and Seattle.
February 2006: The governments of Tanzania and South Africa have agreed to separate Air Tanzania Corporation (TNZ) from South African Airways (SAA). (SAA) bought 49% of the carrier back in 2002 but not much progress has been made lately. For example, 2 of Air Tanzania (TNZ)'s airplanes are in South Africa for maintenance and pledges by (SAA) to bring in 3 more Boeing airplanes into the partnership have not materialized.
South African Airways (SAA) selected (ARINC)'s OpCenter (ACARS) message-handling service to host and manage its air operations data link message traffic.
March 2006: South African Airways (SAA) said it will terminate its loyalty program agreement with Qantas (QAN) from April 9, at which time (SAA) Voyager members no longer will be eligible to earn or redeem points aboard Qantas (QAN) flights.
South African Airways (SAA) unveiled an A340-600 repainted in Star Alliance (SAL) livery. (SAA) is scheduled to join the alliance on April 10. All members are required to paint 3% of their fleet in the group's livery. The carrier also will paint a 737-800.
747-444 (25152) sold to Cathay Pacific (CAT) for conversion to freighter.
April 2006: South African Airways (SAA) became the first African carrier to join an alliance, when it officially was inducted into the Star Alliance (SAL) at ceremonies in Johannesburg. It is the alliance's 18th member (Swiss International Air Lines (CSR) joined April 7) and increases the Star network to more than 15,500 daily flights serving 842 destinations in 152 countries. (SAA) offers access to 21 destinations in Africa and transatlantic service to South Africa. "Membership of this alliance places us amongst the top airlines in the world," CEO, Khaya Ngqula said. "Our footprint on the continent reflects our African spirit, qualities that we wish to introduce to the rest of the world." In conjunction with the announcement, (SAA) unveiled the African Airpass, a fare product for non-African passengers allowing them to build their own intracontinental itineraries with fares based on a fixed per-mile rate of 15 cents.
The Star Alliance (SAL) was established in 1997 as the first truly global airline alliance to offer customers worldwide reach and a smooth travel experience. The Star Alliance (SAL) was voted "Best Airline Alliance" by Skytrax in 2003 and 2005. The members are Air Canada (ACN), Air New Zealand (ANZ), All Nippon Airways (ANA), Asiana Airlines (AAR), Austrian (AUL), bmi (BMA), (LOT) Polish Airlines, Lufthansa (DLH), Scandinavian Airlines (SAS), Singapore Airlines (SIA), South African Airways (SAA), Spanair (SPP), SWISS (CSR), (TAP) Portugal, THAI (TII), United (UAL), US Airways (AMW)/USA), and VARIG (VAR) Brazilian Airlines. Regional member carriers Adria Airways (ADR) (Slovenia), Blue1 (BLF) (Finland) and Croatia Airlines (CRH), enhance the global network.
South African Airways (SAA) will launch a low-cost carrier (LCC) by year end, President and CEO, Khaya Ngqula revealed during a ceremony in Johannesburg that saw (SAA) become a full Star Alliance member. "There is a clear demand for low-cost travel in the country," Ngqula said, noting that (LCC)s represent 20% - 25% of the market. "The market for domestic travel has increased by +50% over the past five years [since the first (LCC), kulula.com (KUL), commenced operations], and we have only captured 5% to 10% of this. We need to take a bit of this back."
The (LCC) will have its own management and brand and a network separate from (SAA)'s domestic and regional routes. Ngqula is uncertain whether (SAA) will allocate part of its fleet to the startup - - "Probably not. Maybe," he said.
There reportedly is some dissent within (SAA) concerning the venture. Recently, CFO, Tryphosa Ramano resigned "to pursue other interests," but insiders said she left because of a disagreement with Ngqula over the low-cost idea, although it had been clear for some time that the pair did not see eye-to-eye on several issues.
South Africa's fastest-growing (LCC)s include kulula.com (KUL), a Comair (CML) entity, and 1time (1TA), which is run by Glenn Orsmond, who set up kulula.com (KUL) for Comair (CML) and then left to establish a copycat operation of his own.
Ngqula also said that he expects the current financial year, which started April 1, to be reasonably good. "(GDP) growth in South Africa is +6%. Our board expects us to attain a growth of at least this," he said, but he refused to disclose whether the recently completed fiscal year ended in the red, as expected by insiders.
He did concede that "last year was difficult. We had the strike [by ground personnel], a +40% surge in the price of fuel, while additionally a hole in the runway in Cape Town Airport and the rationing of fuel at London Heathrow affected our operations. The airline industry is a fickle industry. You just never know what will hit you next."
South African Airways (SAA) will move the stopover on its Johannesburg to Washington Dulles (IAD) flight from Accra (ACC) to Dakar (DKR), because the airline is unable to obtain 5th freedom rights from Ghana. The last (JNB) - (ACC) - (IAD) will depart on April 30th, the first (JNB) - (DKR) - (IAD) flight will depart on May 1st. Flights are operated 4x a week departing (JNB) on Mondays, Wednesdays, Fridays, & Sundays, and (IAD) on Mondays, Tuesdays, Thursdays, & Saturdays and using a 747-400. South African Airways (SAA) will inaugurate nonstop service from Dakar to Washington's Dulles International Airport on May 2nd. The airline will operate 4 flights a week, on Mondays, Tuesdays, Thursdays, & Saturdays, using a 747-400. (SAA) already operates a daily nonstop flight from Dakar to New York (JFK) using an A340-300.
May 2006: Employees = 12,000 (including 800 Flight Crew (FC); 2,800 Cabin Attendants (CA); & 3,600 Maintenance Technicians (MT)).
77% of (SAA) leadership is black with a 56:44 male to female ratio. At senior management level, 44% are black with 41% of middle management and 55% non-management staff are black.
South African Airways (SAA) announced the launch of a daily Johannesburg - Washington Dulles service, via Dakar, beginning July 1 aboard an A340-600, replacing a four-times-weekly flight aboard a 747-400 stopping in Accra. Times have been adjusted to conform more closely with United Airlines (UAL)'s Dulles schedule. (SAA) will discontinue its daily service to Atlanta the same day, but will continue to operate to New York (JFK).
South African Airways (SAA) appointed ex-Spirit Airlines (SPR) VP-Sales and Distribution, Marc Cavaliere as Executive VP North America, based at (SAA)'s USA headquarters in Fort Lauderdale.
South African Airways (SAA) agreed to pay ZAR55 million/$8.3 million in fines levied by the South African Competition Commission for price-fixing violations. The Commission alleged that (SAA) and Lufthansa (DLH) colluded to fix ticket prices on flights between Cape Town, Johannesburg and Frankfurt. It also claimed that (SAA) and South African carriers SA Express, Comair (CML), and SA Airlink colluded to fix fuel surcharges on flight tickets. (SAA) has a year to pay the fine fully and agreed to educate its management and employees on the nature of the violations to prevent similar anticompetitive behavior from recurring in the future.
South African Airways (SAA) took delivery of the first of two DHC-8-Q402 turboprops. The 74-seat airplanes will operate from Johannesburg to Bloemfontein and George for South African (SAA) Express.
June 2006: South African Airways (SAA) launches direct flights to Washington Dulles Airport (IAD).
Football? Did someone say football? While billions of eyes turn toward Germany for the World Cup, South African aviation authorities already are preparing for the 2010 tournament and the expected influx of visitors for the world's biggest sporting event.
South Africa will be the first African country to host the World Cup, and airport authorities have unveiled a series of massive reconstruction projects to mark the occasion. Johannesburg International Airport (JNB) is to be the centerpiece of the plan. It has committed to building a new ZAR8 billion/$1.18 billion terminal to accommodate increasing passenger numbers and airplane movements, as well as a new cargo facility to meet the growing demands of just-in-time shipments into and out of the country.
(JNB) General Manager, Chris Hlekane said the new terminal building will be constructed in the empty space between the two north-south runways and would have its own domestic and international check-in facilities. Johannesburg currently handles 16.1 million passengers a year, and that number is projected to exceed 22 million by 2012. The terminal expenditure is in addition to the ZAR3 billion already allocated to upgrade the airport before the 2010 World Cup.
Airports Company SA (ACSA), which owns and manages (JNB) and nine other major airports around South Africa, expects more than >350,000 soccer fans to visit during the month-long tournament. It has announced plans to spend ZAR5.3 billion to upgrade the airports, bringing forward some plans that already were in place and introducing other initiatives. Key projects at (JNB) that have been brought forward, include the train station for the Gautrain Rapid Rail Link, runways, taxiways, and air bridges to accommodate the A380 and two multi-story car parks.
Meanwhile, Cape Town International Airport has been allocated ZAR650 million for the building of a new two-story domestic terminal building, and a further ZAR350 million for the construction of an upper and lower roadway system to feed it. The design of the terminal will accommodate the airport's first six air bridges for domestic flights.
Durban International Airport is to have a ZAR35 million extension of its international terminal, while more than ZAR130 million has been allocated for the refurbishment of the four other major national airports - Port Elizabeth, George, East London and Bloemfontein - over the next five years.
Other long term plans for (ACSA) include the relocation of the main runway at Cape Town to the slight east of its current position to allow for development between the present runway and terminal buildings.
July 2006: Falling yields, low-cost competition and soaring fuel costs had a devastating effect on South African Airways (SAA)'s bottom line during the fiscal year ended March 31, as profits plunged -90% to +ZAR65 million/+$9.1 million from +ZAR648 million, the carrier said, according to press reports. (SAA) released certain year-end performance indicators on its Web site, but did not include final profit figures. It did say that passenger revenue rose +0.8% to ZAR13 billion against a -3.5% decline in yield as it lost market share to low-fare carriers.
Domestic yield dropped -11% and international yield decreased as well. "It is clear that going forward, attention should be focused on enhancing yields on domestic and international routes," (SAA) said. Capacity increased +5.6%, passenger numbers rose +4.5% to 7.2 million and load factor remained steady at 70% LF.
The carrier said its freight revenue grew +7.9% to ZAR1.61 billion, Maintenance Repair & Overhaul (MRO) revenue climbed by more than +25% to ZAR470 million and "other airline income" more than doubled to ZAR3.78 billion, which included the increased fuel surcharges placed on tickets.
Operating costs went up +17.7% driven by a +53.1% spike in fuel expense to ZAR4.9 billion. (SAA) said it has hedged 40% of its fuel at an average of $62 per barrel. Operating costs rose +5.6% excluding fuel, which it said was "broadly in line with inflation."
According to the airline, CEO, Khaya Ngqula, speaking at the results announcement, reported that (SAA) is "now entering a time of growth," adding, "Ngqula highlighted customer service improvements, a review of the airline's network strategy and a repositioning of (SAA)'s international focus as priorities. He added that sustained and focused cost-cutting and improved operational efficiencies are critical to this airline's success, with the Bambanani turnaround program being the cornerstone of these initiatives." (SAA) has cut costs by more than -ZAR500 million through the Bambanani program instituted in 2004.
(SAA)’s final flight from Atlanta departs for Johannesburg. The Johannesburg - Atlanta service ends.
South African Airways (SAA) and Lufthansa (DLH) were fined by South Africa's Competition Tribunal for anticompetitive behavior. (SAA) agreed to the fines in May for allegedly colluding with (DLH) to fix ticket prices on flights between Cape Town, Johannesburg and Frankfurt. (SAA) will pay ZAR40 million/$5.6 million, while Lufthansa (DLH) agreed to pay ZAR8.5 million. In a separate case, (SAA) was fined ZAR20 million by the tribunal for allegedly colluding with South African carriers SA Express, Comair (CML) and SA Airlink to fix fuel surcharges on domestic flight tickets.
In March, the carrier signed a sale and leaseback agreement for two A340-600s. It used the ZAR1.3 billion in proceeds to repay foreign debt and fund operational activities. Ngqula told reporters that an Initial Public Offering (IPO) will be considered once the debt-to-equity ratio improves.
August 2006: South African Airways (SAA) is planning to launch a low cost carrier (LCC) airline by the end of the year (later to be named "Mango" (MGO)).
September 2006: South African Airways (SAA) sold its 49% share in Air Tanzania (TNZ) back to the Tanzanian government for $1, according to press reports. The government sold the stake to (SAA) in December 2002 for $20 million. "I think South African Airways (SAA), when they made the decision to buy into Air Tanzania (TNZ), they thought it would suit their strategic objectives. It become apparent it was no longer in support of their strategic objectives," (TNZ) Managing Director, John Coleman told the Associated Press, adding that it will take 3 - 6 months for the companies to split software, communications equipment and other joint operations. Air Tanzania (TNZ) said it operates a fleet of three 737-200s and one F28 and employs 271 people.
South African (SAA) Express will inaugurate nonstop service from Cape Town to Maputo on October 2nd. The airline will operate 2 flights a week, on Mondays & Fridays, using a CRJ-200.
October 2006: South African Airways (SAA) will launch daily nonstop service from Washington Dulles to Johannesburg effective October 30 using A340-600s. The airplanes will require a technical stop to refuel during July and August.
November 2006: South African Airways (SAA) has its own low-cost carrier (LCC), "Mango" (MGO) in a bid to win back domestic market share.
The carrier (MGO) will begin flights on 15 November and was formally unveiled at a press conference in Johannesburg. The new carrier will initially operate a fleet of four 737-800s, leased from (SAA). Mango (MGO) is looking to lease up to six additional 737-800s over the next few years, says Mango (MGO) Chief Executive (CEO), Nico Bezuidenhout. He says the carrier is “actively looking at 737s in the marketplace,” but adds that 737-800s are “hard to come by”.
“We may grow to 10 airplanes in five years,” Bezuidenhout says. “It all depends on how well we’re received by the market.”
He admits that Mango (MGO) is sub-leasing its first four 737-800s from (SAA) at normal market rates and under normal commercial terms. The airplanes, which are due to come off lease in 2012, will be maintained by (SAA) Technics.
Mango (MGO) will use two airplanes to launch operations on 15 November on flights from Johannesburg's or Tambo international airport to Cape Town and Durban. A further two airplanes will follow for the start of December, when Mango (MGO) begins Bloemfontein to Durban and Cape Town.
December 2006: Starting July 3rd, Johannesburg - Munich, 3/week, using A340-300s.
South African Airways (SAA) said it will lay off -1,000 employees, or approximately -9% of its workforce, next year in a cost-cutting measure, according to widespread South African press reports citing a statement from CEO, Khaya Ngqula, who said the airline is enjoying increased traffic and revenue, but cannot hold down its expenses. (SAA)'s profit for the fiscal year ended March 31, plunged -90% year-over-year.
(SAA) announced that it will start serving Chicago (ORD) on May 8th. Four-times-weekly A340 Johannesburg - (ORD) service will stop in Dakar. The airline is also adding Buenos Aires service in July 2007 with 3 flights a week while Sao Paulo service is to be increased to 10 flights a week. (SAA) will add service to Munich on July 1st with 3 flights a week, and Libreville (Gabon) is also scheduled to be added to its network in April 2007 with 3 flights a week.
January 2007: South African Airways (SAA) introduced lie-flat seating on all long-haul routes. In addition, it increased the pitch on its A340 economy (Y) seats and added amenities to its first class (F) service including enhanced seats, revamped lounges and check-in services, chauffeur service in Johannesburg and London, and other improvements.
(SAA) launches a self-service check-in system, otherwise known as (CUSS).
February 2007: South African Airways (SAA) and Air Mauritius (MAU) code share on Durban, Cape Town, Johannesburg, and Mauritius.
March 2007: The South African National Assembly voted to take direct control of South African Airways (SAA), removing the carrier from the Transnet group of companies, as a step toward eventual privatization, the South African Press Assn reported. "It makes it possible for (SAA) to rely on its own balance sheet to raise funds for its operations, instead of always relying on the government," Public Enterprises Minister, Alec Erwin said.
On April 28th, will discontinue Johannesburg - Zurich.
April 2007: South African Airways (SAA) "needs a full-scale restructuring to return to profitability," CEO, Khaya Ngqula said while announcing the start of a "comprehensive" revamp "that will include all levels of the organization." (SAA) previously announced it will eliminate -1,000 positions this year. A restructuring committee has been formed and the "process to develop a new business plan" approved, it said. It signed Seabury Airline Planning Group to "guide the airline through this process." In addition to tackling "perceptions that the airline lacks a sense of urgency, accountability, that it is bureaucratic and that government will not let it fail," (SAA) said staff will travel only for "essential operational requirements," most company mobile phones have been confiscated and discretionary spending has been revoked.
(SAA) and Malaysia Airlines (MAS) announced a codeshare pact effective June 1, under which (SAA)'s code will be placed on (MAS)'s thrice-weekly, Johannesburg - Kuala Lumpur service, giving customers from each country access to multiple onward connections.
(ANA) and South African Airways (SAA) filed an alliance agreement with their respective governments allowing the carriers to codeshare on services between Japan and South Africa, via Hong Kong, with expanded cooperation possible in the future.
May 2007: South African Airways (SAA) is cutting jobs and routes as part of a drastic restructuring that could also lead to spinning off non-core units such as airplane maintenance. (SAA) will submit a new business plan to its board this month, that will position (SAA) for a return to profitability. "Although we are running load factors of 85% LF and 90% LF, passenger numbers are growing and revenue is on track, and operating costs remain a challenge. We are lagging our competitors, who run operations of similar size with fewer people."
(SAA) has not yet decided how many of its 10,500 employees to retrench, but has informed the unions that cuts will be made. It has unveiled plans for cuts of up to -1,000 at the end of November, after revealing a -652 million rand/-$92 million loss for the six months ending 30 September.
The new business plan could follow Air Canada (ACN)'s model of spinning off non-core units. "We are looking at the possibility of ring fencing our subsidiaries into their own standalone companies as a measure to control accountability," (SAA) said.
Meanwhile privatisation plans have been shelved until at least 2010.
(SAA) is also re-examining its long-haul fleet and whether to phase out its 747-400s. Lat year it reduced its 747-400 fleet to six and another 747-400 is to be returned next month.
June 2007: South African Airways (SAA) said that it will ground its 747-400 fleet, divide into seven subsidiaries, and cut its management staff by -30% as part of a comprehensive restructuring effort, aimed at returning the carrier to profitability. Two months after CEO, Khaya Ngqula vowed to initiate a "full-scale restructuring" program that would respect "no holy cows," he outlined the extent of the changes and claimed that a return to profitability within 12 to 18 months is possible. "(SAA) must overhaul its entire business if it wants to survive," he said. It is targeting a revenue improvement/cost reduction of -ZAR2.7 billion/-$378 million by the end of 2008.
Five leased 747-400s and one owned 747-400 will be grounded as part of a route rationalization in which the carrier will focus less on long-haul international services and more on domestic routes and flights to points on the African continent. "Africa is a key driver of international tourism to [South Africa], delivering about 70% of all arrivals," Ngqula said. "(SAA) will thus forge strategic alliances with African airlines to grow the airline's network reach [throughout Africa]." He added that it will continue to provide service to other continents, via flights to major cities, but will drop unprofitable routes, revealing that flights to Paris (CDG) will end later this year.
(SAA) said in a statement that it will be "unbundled" into seven "independent subsidiaries operating as profit centers [with] . . . their own corporate functions." The company will be "anchored by a full-service passenger airline," it said, emphasizing that domestic passengers still can expect inflight meals. Ngqula said "outside equity partners" could be offered stakes in some of the units, including (SAA) Cargo.
The company will eliminate about -150 management jobs and is likely to seek job cuts in other areas; it previously has said it would trim about -1,000 workers, but yesterday declined to release a figure, citing ongoing talks with labor unions. It plans to implement further cost cuts across the airline and seek operational improvements where possible.
Head of Network Development, Alliances & Aeropolitical Affairs, Jason Krause recently said that (SAA)'s revenue numbers "are pretty much in line" but that costs are too high and excessive expenditures need to be "ripped out of the business."
South African Airways (SAA), which revealed a major restructuring initiative, is being offered the opportunity to reverse its financial situation, but has been warned it will not be backed indefinitely by the national government, which owns the troubled carrier. Government officials "want (SAA) to succeed, but they're not prepared to babysit (SAA)," CEO, Khaya Ngqula conceded to South Africa's "Business Day" (BD). He said the airline needs to take a more businesslike approach and depend less on the state. "The bottom line is (SAA) used to be a 'utility' and not even a 'state-owned enterprise,' which is what we call [it] today. A utility was something that was there to give a service to the community. Whether it was profitable or not, that didn't count," he explained.
Cost reduction is a principal component of the restructuring. Ngqula said (SAA) was paying $1.2 million per month on each of five 747-400 leases, which he claimed is double the current market rate and was making it impossible to earn money on long-haul routes. The carrier is grounding those airplanes and will replace them with A340-300s it owns, but had leased to Jet Airways (JPL), he told (BD). "The routes which have been unprofitable, should be turned around as soon as we bring those airplanes back."
It appears likely that complete or partial privatization will be considered going forward, particularly if the restructuring program fails to meet expectations. (SAA) said earlier this week that the company would be "unbundled" into seven independent subsidiaries and Ngqula said "outside equity partners" could be offered stakes in some units, including (SAA) Cargo.
The South African National Assembly voted in March to take direct control of (SAA), removing it from Transnet, the government-funded entity that manages the country's major transportation infrastructure. The move was seen by some, as a first step toward an eventual privatization. "The government is obviously thinking about that," (SAA) Head of Network Development, Alliances & Aeropolitical Affairs, said Jason Krause. "There's an interest in getting private equity in the business."
The carrier has not released its results for its fiscal year ended March 31, but a steep loss is projected.
July 2007: South African Airways (SAA) announced it will add three additional frequencies on its route between Johannesburg and Sao Paulo – bring to 10, the number of weekly flights between the two cities. (SAA) launches its very first flight between Johannesburg and Munich, Germany.
(SAA)'s restructuring program, which is aiming for revenue improvement/cost reduction of -ZAR2.7 billion/-$378 million by the end of 2008, is moving ahead rapidly, CEO, Khaya Ngqula told "Business in Africa." He said losses in the second half of its fiscal year ended March 31 were about -ZAR200 million, not as steep as some had projected and reduced from a loss of -ZAR652 million in the first fiscal semester. He added that (SAA) would require a further recapitalization in order to cover the "substantial" one-off costs of the restructuring program. He said the management structure has been redesigned to ensure that executives are directly responsible for implementing the restructuring initiative. (SAA) plans to cut management staff by -30%. The report also revealed that low-cost subsidiary Mango (MGO), launched last November, has captured 10% of the domestic market.
A340-313E (646, ZS-SXE), returned from Jet Airways (JPL).
August 2007: Aviapartner Handling was contracted by South African Airways (SAA) to provide ramp handling services in Munich (MUC) for (SAA)'s new (MUC) - Johannesburg route. The carrier operates three flights per week aboard A340-300s, and will increase service to daily for the winter schedule.
September 2007: South African Airways (SAA)’s launches first flight from Johannesburg to Libreville, Gabon.
(SAA) said it will realize "significant cost savings," following renegotiation of several service contracts and grounding of two of its six 747-400s, with the remainder to follow in the coming months. "In just over three months since the approval of our business plan, we are beginning to realize some of its objectives, which will place us on the road towards financial sustainability," General Manager Operations, Chris Smyth said. (SAA) listed renegotiated ground handling and baggage agreements with Senegal Handling Service and Optima, a new telephony deal with Transtel, a new contract with warehouse and logistics provider Kintetsu World Express, and a terminal switch in Hong Kong as key to its restructuring. It said it is on its way to cutting management staff expenses by -30%.
October 2007: South African Airways (SAA)’s flights from Johannesburg to Paris come to an end.
(SAA) named former Telkom CFO, Kaushik Patel to the same position at the airline. He replaces Acting CFO, Clive Else, who will become CEO of (SAA) Technical effective December 1. Jan Blake will leave the latter position to become General Manager Mergers, Acquisitions & Disposals. Fortune Ntlhoro was named Chief Procurement Officer.
November 2007: South African Airways (SAA) posted a net profit of +ZAR136 million/+$20.1 million for the fiscal first half ended September 30, reversed from a loss of -ZAR650 million in the year-ago period, and said it is making substantive progress on its restructuring program, citing the grounding of its six 747-400s and positive labor talks. (SAA) embarked on a wide-ranging restructuring initiative earlier this year, and CEO, Khaya Ngqula said it has "made good strides towards growing revenue, and lowering our high operating cost base, which is imperative if we are to return to profitability on a sustainable basis in the future." The airline said its six-month net profit, including restructuring charges, was +ZAR80 million. Fiscal first-half revenue grew +14.6% to ZAR11 billion. "We still have a long way to go, as the interim results reflect a profit margin of 1.2% in comparison with our target profit margin of 7.5%, which we need in order to return to profitability on a sustainable basis," Ngqula said. "The trend, however, is positive."
SAA said it will save "at least -ZAR600 million" over the next 18 months owing to the November 1 grounding of its 747-400s. "Negotiations are progressing with a number of interested parties wanting to either purchase or lease the 747-400s," it said.
The carrier added that management's discussions with unions have led to common ground, though final agreements have not been reached. "Labor has agreed that restructuring is essential to the survival of (SAA) and has agreed to forego salary increases for the year [ending March 30], while also coming to the party with savings on conditions of employment," it said. "These are currently being verified by (SAA)'s internal auditors, but it is expected that any job reductions will be far fewer than the initially envisaged worst case scenario of -2,232."
(SAA) and Scandinavian Airlines (SAS) announced code share agreements on European routes, London, Munich, and Frankfurt to Copenhagen, Oslo, Stockholm, and Gothenburg.
(SAA) and Air Tanzania (TNZ) change their code share to include only the Johannesburg - Dar es Salaam ‘trunk route,’ and not Kilimanjaro and Zanzibar.
737-3YOF (26072, ZS-SBB), (GEF) leased, ex-(N701JZ). (SAA)’s last 747-400 does final flight. All six of (SAA)’s 747-400s are now grounded as part of the restructuring exercise to lower operating costs.
January 2008: Aviareps will represent South African Airways (SAA) as general sales agent (GSA) in Italy and Benelux.
Swissport South Africa reached agreement with South African Airways (SAA) to provide airport ramp handling in South Africa from February 1.
May 2008: South African Airways (SAA) said its restructuring plan launched last year so far has yielded -ZAR1 billion/-$130 million in annual cost savings and the program is on track to allow the carrier to begin achieving "sustainable profitability by March 2009."
On the labor front, (SAA) said it has reached agreement on new multiyear deals with unions representing cabin crew (CA) and ground staff (MT), while pilots (FC) are in the process of ratifying a tentative agreement that will "guarantee" a +5% productivity improvement. "We are satisfied that our restructuring efforts have so far shown positive results," CEO, Khaya Ngqula said. He noted, however, that the "recent huge rise in the oil price . . . has placed margins under pressure across the board" and could moderate the restructuring program's effectiveness. He added that the new labor agreements set "the course for stability on the labor relations front until well after 2010, allowing management to focus on consolidating the airline's deep and fundamental restructuring program, as well as growing the business in the future."
(SAA) has cut more than -1,800 management staff, since the restructuring was launched, with more than half leaving via a voluntary severance program. It also has grounded its 747-400 fleet and is in the process of "unbundling" the company into seven standalone subsidiaries.
(SAA) and Malaysia Airlines (MAS) sign code share agreement on Johannesburg - Kuala Lumpur route.
Three 747s have been returned to lessors, one has been wet-leased to TAAG Angola Airlines (ANG) and the remaining two "are in the process of being subleased through their owners." The fleet's grounding yielded -ZAR600 million in savings, (SAA) claimed. The carrier said it plans to "replenish and modernize" its fleet, which now comprises nine A340-600s, 11 A319s, six A340-300s, six A340-200s, and 17 737-800s. It was vague on the modernization plan, but said it will lease "three wide- and three narrowbodies" to be delivered in 2008 and 2009. It "will conduct an airplane supply competition for Airbus (EDS) and Boeing (TBC) airplanes as soon as possible this year for the acquisition of replacement and additional airplanes" for delivery in 2010 to 2014.
July 2008: South African Airways (SAA) reported a -ZAR1.09 billion/-$142.5 million loss in the fiscal year ended March 31, widened from -ZAR833 million the previous year, "Bloomberg News" reported. The result reportedly was driven by costs related to a restructuring program that included the grounding of its 747-400 fleet and nearly -2,000 layoffs. Excluding the restructuring costs, it was -ZAR123 million in the black. CEO, Khaya Ngqula said the airline is on course for a net profit in the current financial year, according to the news service. Sales climbed +9% to ZAR22.5 billion on a +15% increase in fares, although passenger numbers fell -1.3%.
Star Alliance (SAL) CEO, Jaan Albrecht said that Star (SAL) is committed to increasing its presence in Africa and better coordinating the continent's fragmented network. "Now we have a dual gateway with (EGP) and [South African Airways (SAA)] in Cairo and Johannesburg. There are 305 airports and a population of 900 million people, but just 16,000 weekly flights are offered within Africa," he said. "The economic and business climate of Africa is getting the world's attention. The Star Alliance (SAL) is well positioned to serve the business interests of the continent by having EgyptAir (EGP) in the north, South African Airways in the south, and nine other member airlines flying to Africa," Albrecht said in a statement. (EGP) and (SAA) are Africa's largest carriers in terms of capacity, fleet and passengers, followed by Royal Air Maroc (RAM), Kenya Airways (KEN), and Ethiopian Airlines (ETH). Star holds a 22% market share in Africa, followed by SkyTeam (STM)'s 17% (with (KEN)) and Oneworld (ONW) with just 7%.
The Star Alliance (SAL) is evaluating the possibility that (EGP) and (SAA) might cooperate to create transfer points in Central Africa to boost intra-continental travel. The alliance also is reshuffling its schedule in Cairo to create more efficient flight connections and will benefit when the airport's new dedicated Terminal 3 opens this fall with the capacity to serve 11 million passengers per year.
The 11 Star Alliance (SAL) members currently serving Africa fly to 78 destinations in 36 countries. Albrecht denied that the alliance is discussing membership with Ethiopian (ETH), which is working on bilateral agreements with alliance members like Lufthansa (DLH).
Meanwhile, (SAA) still is reconstructing its own network. "With the closure of our Capetown - Frankfurt route, we are getting back to our core network that we can build on," (SAA) Head of Network Development, Alliances & Aeropolitical Affairs, Jason Krause said. It has no further route cuts planned. (SAA) is looking to lease three A319s/A320s and three A340-300s, that will replace A340-200s. Krause said it favors the A340-300 over the A340-600, because the lighter airplane is more fuel efficient. It is studying the possibility of launching service to China, but would require an airplane to operate the route nonstop.
SR Technics (SWS) signed a five-year, $165 million, Integrated Engine Solutions agreement with South African Airways (SAA) Technical covering maintenance of the (CFM56-5C)s powering (SAA)'s A340s.
August 2008: Qantas (QAN), which codeshares with South African Airways (SAA), is adding an additional weekly frequency to Johannesburg from Sydney in December, meaning it will fly the route six times a week. It also said it intends to up that to daily service.
September 2008: As the national flag carrier, South African Airways (SAA) serves more than 30 international points, together with all major South African cities.
Employees = 11,000.
(IATA) Code: SA - 083. (ICAO) Code: SAA (Callsign - SPRINGBOK).
Parent organization/shareholders: Government owned through Transnet (98.2%); & (SAA) Incentive Trust (1.8%).
Owns: (SAA) Cargo (100%); & South African Airlink (10%).
Alliances: The Star Alliance (SAL).
Main Base: Johannesurg O R Tambo International Airport (JNB).
Hubs: Cape Town International airport (CPT); & Durban Louis Botha International airport (DUR).
Domestic Scheduled Destinations: Bloemfontein; Cape Town; Durban; East London; George; Hoedspruit; Johannesburg; Kimberley; Mala Mala; Margate; Mmabatho; Nelspruit; Phalaborwa; Pietermeritzburg; Polokwane; Port Elizabeth; Richards Bay; Umtata; & Upington.
International, Scheduled Destinations: Abidjan; Accra; Addis Ababa; Beira; Blantyre; Bulawayo; Dakar; Dar Es Salaam; Dubai; Entebbe/Kampala; Frankfurt; Gaborone; Harare; Hong Kong; Kigali; Kilimanjaro; Kinshasa; Lagos; Lilongwe; Libreville; Livingstone; London; Luanda; Lubumbashi; Lusaka; Manzini; Maputo; Maseru; Mauritius; Mumbai; Munich; Nairobi; Ndola; New York; Perth; Recife; Sal; Salvador; Sao Paulo; Sydney; Tel Aviv Yafo; Victoria Falls; Walvis Bay; Washington; Windhoek; & Zanzibar.
South Africa isn’t insulated from the worldwide slowdown in air traffic. Passenger totals at Johannesburg’s O R Tambo International airport (JNB) are down -1% through July. After starting the year with three consecutive months of growth, the airport’s April traffic
was flat, May was down -2%, June was down -4%, and July was down -6%. The reason for the contraction lies with domestic traffic,
which is down -6% so far this year (though July) and by double digits from May to July. Domestic passengers account for 55% of the airport’s total. Traffic at (JNB) grew between +9% and +11% during the past few years, making it one of the world’s fastest-growing major markets. That explains why the airport opened a new
international terminal earlier this month. In Cape Town, South Africa’s second busiest market, and one that has also grown by double
digits during the past few years, traffic is also shrinking. Passenger totals dropped from year-ago levels during the second quarter and fell -8% in July alone. Here, too, the cause is a
December 2008: South African Airways (SAA) said it will launch twice-weekly, Johannesburg - Buenos Aires (EZE) flights on April 8 aboard an A340-200. A third weekly flight begins in July. (EZE) is (SAA)'s second South American destination after Sao Paulo Guarulhos.
(SAA) and the South African Transport & Allied Workers Union (SATAWU) reached an agreement under which the carrier cancelled plans to outsource call centers to Dimension Data on December 1, pending further discussions with the union. The (SATAWU) recently engaged in industrial action.
Swissport said it concluded an agreement with (SAA) to provide ground handling for (SAA) at Johannesburg, Cape Town, Durban, Port Elizabeth, East London, and George airports. The agreements run from 2009 to 2014.
(SAA) Technical said it was "given an unqualified stamp of approval" by USA (FAA) following a re-audit of its maintenance operations. (SAA)'s (FAA) accreditation was renewed through July 31, 2009.
(SAA) said its pilot (FC) workforce now stands at 775, including 128 hired this year and 54 currently in training.
January 2009: South African Airways (SAA) said it is "about to enter a moderate growth phase" and announced network additions designed around a strategy that "focuses on (SAA) as an African carrier with global reach, enhancing Johannesburg (JNB) as a hub and moving capacity to more profitable routes." Among the announced initiatives was the April addition of Douala service and a commercial agreement with Democratic Republic of Congo carrier, Lignes Ariennes Congolaises (LNA) under which (SAA) this month will raise (JNB) - Kinshasa service to six-times-weekly from four. It will add flights to Libreville in March. Internationally, it will begin twice-weekly (JNB) - Buenos Aires flights on April 8 aboard an A340-200, with a third-weekly added in July. Perth will get a sixth-weekly flight in July and (JNB) - New York (JFK) service will become nonstop beginning May 1. Washington Dulles - (JNB) flights will stop in Dakar.
February 2009: South African Airways (SAA) CEO, Khaya Ngqula was placed on leave after the (SAA)'s board commissioned an independent investigation of alleged improprieties, particularly concerning a catering contract that was awarded to a consortium co-owned by a business associate of the CEO's wife. Servair, a consortium co-owned by Vusi Sithole, recently was chosen in what (SAA) characterized as "a competitive bidding process" to cater in-flight meals on domestic flights. According to multiple South African news reports, Sithole has close ties to Ngqula and his wife, Mbali Gasi. The South African Transport and Allied Workers Union, which represents (SAA) employees, alleged in a formal complaint that award of the contract is a prime example of Ngqula's "mismanagement."
The complaint led (SAA)'s board to hold an extraordinary meeting at which it commissioned "an independent investigation into allegations surrounding . . . Ngqula and the executive team," according to an (SAA) statement. "The investigation will be undertaken as a matter of urgency." Ngqula has been overseeing a restructuring of (SAA) that has included ZAR1.3 billion/$131 million in government aid. Government officials indicated that another ZAR1.6 billion likely will be invested in (SAA)'s turnaround program. Public Enterprises Minister, Brigitte Mabandla publicly endorsed the investigation of Ngqula, who did not comment. Reports from South Africa indicate that the airline is attempting to negotiate a termination of his contract. (SAA) said an acting CEO would be appointed shortly. Sithole has denied any wrongdoing, telling South African media that Servair won the catering contract in an "open" process. The contract has not been finalized.
(SAA) appointed General Manager Operations, Chris Smyth acting CEO while CEO, Khaya Ngqula is on leave.
April 2009: South African Airways (SAA) launched 13-times-weekly, Johannesburg - Gaborone service aboard an A319.
June 2009: South African Airways (SAA) CEO, Chris Smyth said that he expects the airline to post an operating profit for its fiscal year started April 1 and that the carrier's two-year restructuring is largely complete. "Now we have to be sustainable," he said. Smyth, who spent several years as Kenya Airways (KEN)'s CFO, earlier this year replaced Khaya Ngqula, who was ousted in February by (SAA)'s board after it commissioned an independent investigation of alleged improprieties. The South African Transport and Allied Workers Union, representing (SAA) employees, initiated the investigation in January when it alleged in a formal complaint to the board that the suspect awarding of contracts pointed to Ngqula's "mismanagement." The investigation is ongoing, and South Africa's "The Times" reported last month that the probe goes beyond just Ngqula as "more than >ZAR5 billion/$617 million worth of tenders and procurement deals awarded by [SAA] over the past six years are being investigated by external auditors commissioned by the airline's board."
But Smyth said the restructuring initiated by Ngqula in 2007, which included "unbundling" the company into seven units, has been successful, slashing -ZAR2.5 billion in annual costs. (SAA) has not reported results for its fiscal year ended March 31; Smyth has acknowledged that it likely will report a loss, citing fuel hedging losses and other costs. It reported a -ZAR1.09 billion loss for the fiscal year ended March 31, 2008.
He said (SAA) will phase out six A330-200s and is looking at options for a new long-haul fleet. "We are studying A350s or 787s," he said, adding that "a decision will be made after the [global financial] crisis." Deliveries likely would be between 2015 and 2020. It is also considering options for a potential single-aisle airplane order. In addition to the A330-200s on their way out, (SAA) currently operates 17 737-800s, 11 A319s, six A340-300s and nine A340-600s. Its six 747-400s were all victims of the restructuring.
August 2009: The Star Alliance (SAL) said EgyptAir (EGP), South African Airways (SAA), and (TAP) Portugal are the first members to use the (SAL)'s newly developed Common Information Technology (IT) Mobile Platform. The mobile services are being rolled out in stages and currently include flight schedules, real-time departures and arrivals and lounge information among other features. More interactive services such as frequent-flyer program status, online check-in and seat selection and mobile boarding passes with 2D barcodes will be made available in the coming weeks, the (SAL) said.
September 2009: South African Airways (SAA) increased its five-times-weekly, Johannesburg - Perth service to daily.
October 2009: Air New Zealand (ANZ) and South African Airways (SAA) reached a code share deal under which (SAA) will place its code on (ANZ)'s daily, Auckland - Perth flight, and (ANZ) will put its code on (SAA)'s daily, Perth - Johannesburg service. The agreement also covers internal flights to principal cities.
December 2009: Aircastle (CSL) announced the placement of six new A330-200s with South African Airways (SAA) on long-term lease. The airplanes are powered by (Trent 772B)s and will deliver during 2011. (CSL) said it now has secured customers for 11 of the 12 A330s it has on order. Two were delivered to Avianca (AVI) this year, three freighters are headed to an unidentified Asian customer in 2010-11, and the last airplane is scheduled for delivery in May 2012. Aircastle (CSL) said it is "actively marketing" that plane. (SAA)'s mainline fleet currently comprises nine A340-600s, six A340-200s, six A340-300s, 11 A319-100s and 17 737-800s.
January 2010: The South African Government is investigating charges of price collusion between South African Airways (SAA) with rival Comair (CML).
February 2010: The Competition Commission of South Africa (CCSA) said it has launched an investigation into collusion on fares and pricing strategies for flights during this summer's soccer World Cup.
The (CCSA) named British Airways (BAB) and its Comair (CML) subsidiary, along with South African Airways (SAA), Airlink, SA Express, 1Time (1TA) and Mango (MGO) as subjects of the inquiry.
The (CCSA) said the office of President, Jacob Zuma issued a November request asking it to look into World Cup soccer airfares. Last month, (SAA) applied for leniency from prosecution in exchange for full cooperation and provided the (CCSA) with "e-mail correspondence between the airlines in which there are indications that the airlines might adjust airfares ahead of the World Cup."
The (CCSA) said, "In particular, the e-mail suggests that since there is no indication as to which flights will represent peak demand flights, airlines have the option to either not provide any inventory for sale until such time, or price all inventory at peak time rates until such time as they have greater certainty." It added that the e-mail "suggests that airfares will have to be raised in order to cover various anticipated additional costs."
Commissioner, Shan Ramburuth said the body "is obliged to investigate all legitimate complaints" concerning anti-competitive conduct and that if it identifies wrongdoing it will refer to the case to the Competition Tribunal for a hearing. The World Cup tournament runs June 11 through July 11 in nine South African cities.
South African Airways (SAA) said it is seeking private investors for its (SAA) Voyager division that administers its frequent-flyer program and its (SAA) Technical Maintenance division. (SAA) would remain in control of the two divisions but wants "equity partners," a spokesperson told "Bloomberg News," while denying the move is a precursor to privatizing the airline.
March 2010: South African Airways (SAA) named SA Express CEO, Siza Mzimela as (SAA)'s new CEO. She joined SA Express in 2003. General Manager Operations, Chris Smyth had filled the position on a temporary basis following the departure of Khaya Ngqula one year ago. (SAA)'s regional partner reported a +ZAR235.4 million/+$30.1 million profit last year.
May 2010: South African Airways (SAA) ordered five A320s, boosting an earlier commitment for the type to 20 from 15 previously. The airplanes, which will be delivered from 2013, will be powered by (IAE) (V2500)s. (SAA) recently agreed to lease six A330-200s from Aircastle for delivery in 2011. (SAA) already operates a fleet of 11 A319s, six A340-200s, six A340-300s and nine A340-600s.
August 2010: South African Airways Technical has signed a letter of intent (LOI) to provide maintenance support for the Sukhoi Superjet 100. The (LOI) was celebrated at a signing ceremony attended by SuperJet International CEO, Alessandro Franzoni and South African Airways Technical Acting CEO, Stefan Poprawa, according to a notice on
the Superjet’s web site.
September 2010: South African Airways (SAA) reported a net profit of +581 million rand/+$81 million in Fiscal Year 2010, which ended March 31. That result represents a +45% improvement from last year, when the airline returned to profitability on a net basis for the first time after several years in the red. Revenues in the 2009/2010 financial year were down -16% to 22 billion rand/$3.1 billion. Passenger numbers declined by -2.4%. Domestic traffic was down -6% and international long-haul demand dropped by -5%, but that was partially compensated by a +9% growth in passenger numbers to African
destinations. CEO, Siza Mzimela said (SAA) would continue to focus on new opportunities in Western and Central Africa, but also strengthen international alliances.
While revenues were down significantly, (SAA) also saw declines in key cost factors: Fuel costs were down -25% and leasing expenses dropped by -30%, Mzimela said. (SAA) also managed to reduce currency hedging losses from about -1 billion rand/-$140 million in 2009 to -122 million rand this year.
Ethiopian Airlines (ETH) has extended its code share with Star (SAL) Alliance member, South African Airways (SAA) to include (SAA)’s regional flights to Gaborone, Botswana, and Windhoek, Namibia, as well as domestic services from Johannesburg to Cape Town and Durban to Port Elizabeth. The extension is scheduled for September 14, just weeks before (ETH) is expected to be unveiled as the (SAL) alliance’s newest member. (SAA) already code shares on (ETH)’s daily flights from Johannesburg to Addis Ababa and on services to Bahrain; Douala, Cameroon; Kuwait; Bamako, Mali; and Kigali, Rwanda.
A340-313E (197, ZS-SXH), ex-(F-WJKP), delivery.
December 2010: (GECAS) (GEF) will open new offices in Cape Town "to expand and strengthen relationships with its airline customers in Africa." It also announced it leased four 737-800s to South African Airways (SAA).
February 2011: South African Airways (SAA) plans to start daily nonstop flights between Johannesburg and New York (JFK) and increase capacity on several southern African regional routes. (SAA)'s Johannesburg - (JFK) flights are currently operated with A340-300s and make a stopover in Dakar, Senegal. The arrival on the route of A340-600s from 1 May will cut out this stop.
(SAA) will operate the A340-600 in a two-class configuration, with 42C business and 275Y economy seats.
(SAA) also intends to bolster capacity on sectors from Johannesburg to both the Namibian capital Windhoek and Kenyan capital Nairobi to meet increasing demand. Both routes are presently operated with either A319s or 737-800s. From 27 February, a wide body airplane - either one of (SAA)'s new A330-200s, an A340-300 or A340-600, depending on demand - will replace narrow bodies on seven of the 20 weekly Windhoek services, increasing the number of seats available weekly from 5,830 to 6,746.
On the Nairobi run, the number of weekly services will be reduced from 10 to seven but the adoption of wide body airplanes on the route will see weekly capacity rise from 2,918 to 3,500 seats.
(SAA) has become the latest operator of the eco-efficient A330 family - - SEE ATTACHED "SAA-2011-02-1ST A330-200." The A330-200 is the first of six to be delivered to Aircastle Limited (CSL) during 2011, all of which will be leased to South African Airways (SAA). Seating 36C passengers in business class and 186Y in economy, the airplanes will feature the latest in-flight entertainment and will be used primarily on long haul routes from the airline’s bases in Johannesburg and Cape Town.
The new A330-200 will join (SAA)'s existing Airbus (EDS) fleet of 11 A319s, 14 A340-200/300s and 9 A340-600s enabling (SAA) to reap the benefits of (EDS)’s unique cockpit and operational commonality. This allows airlines to use the same pool of pilots (FC), cabin crews (CA) and maintenance engineers (MT), resulting in operational flexibility and significant cost savings.
“With the new A330s (SAA) continues to modernize its fleet, ensuring we meet our customers’ expectations. Simultaneously, the new A330s will provide savings and efficiencies to support our profitability and growth strategies,” explained (SAA) CEO, Siza Mzimela.
With a typical range capability of 7,250 nautical miles (for a two-class configuration), the A330-200 has the versatility to cover all ranges from short-haul to true long haul – ideal for point-to-point operations. The reliable and efficient A330 is one of the most widely used wide body airplanes in service today, with one taking off each minute every day. To date, Airbus (EDS) has won over 1,100 orders for the different models of the airplane. Some 750 A330s have already been delivered and the airplane is currently flying with 90 operators worldwide in 50 countries.
March 2011: (IBS) completed integration of its air cargo management solution suite iCargo for South African Airways (SAA). (IBS)'s iCargo is being used across the (SAA) network of 48 stations including 39 international locations, five self-handled warehouse facilities and its global cargo headquarters in Johannesburg.
A330-243 (1210, SZ-SXY), AirCastle (CSL) leased, ex-(F-WWYS).
April 2011: South African Airways (SAA) will launch four-times-weekly, A330-200 Johannesburg - Mumbai service on May 14.
August 2011: South African Airways (SAA) will launch thrice-weekly, Johannesburg (JNB) - Ndola service on October 1. (SAA) will also launch thrice-weekly, (JNB) service to Bujumbura and Kigali, and twice-weekly, (JNB) - Libreville - Cotonou service on October 31.
(SAA) expects to save 20 n miles on each arrival and cut 10 n miles per departure from the current 70 n mile approach path at Cape Town International Airport when new procedures begin operations later this year. (SAA) accounts for two thirds of the airport’s 100,000 annual movements, and expects significant savings in both fuel and emissions. (SAA) retained Airbus (EDS) subsidiary, Quovadis to develop the Required Navigation Performance Authorisation Required (RNP-AR) routes and establish the new procedures in conjunction with South African service provider (ATNS). The performance-based navigation (PBN) procedures cover several airplane types, including the A320 family and 737 airplanes, and already other airlines say they want to take advantage of the more direct flight paths to and from the airport.
(RNP) is a precise (PBN) application that has been used to navigate challenging terrain since the 1990s, for example providing more predictable and accurate flight paths to airports in Alaska, Canada, New Zealand, and China. The technology relies on onboard avionics that keep an airplane within a tightly specified airspace corridor, to within 0.3 miles accuracy in the case of (RNP-AR), freeing an airplane from having to fly over ground-based navigational aids. The airplanes rely on Ground Proximity System (GPS) sensors, backed with inertial reference units to monitor position reports, and the flight management systems detects any deviation from the required (RNP) accuracy specification.
For example, airports in the Tibetan region of China benefit from (RNP) approach paths that enable airplanes to fly precise approach paths through the Himalayan Mountains. Airports such as Lhasa and Yushu introduced (RNP-AR) paths in association with several Chinese airlines as early as 2005, and more than six airports and airlines now use the technology in place of ground-based navigational aids. The Civil Aviation Administration of China (CAAC) contracted Quovadis in May 2011 to develop a Tibetan (RNP) network linking five airports and saving many flight miles.
November 2011: South African Airways (SAA) has announced an expansion of its African routes into the Congo as well as a new international route to China. (SAA) will launch services to Pointe Noire (with A319s) in the Congo from January 26 and Beijing from January 31 (with A340-600s). Pointe Noire is the Congo oil-industry's center.
Pointe Noire is the fourth new African destination this financial year. It joins Ndola, in Zambia; Kigali, in Rwanda; and Bujumbura, in Burundi.
December 2011: The "Economist" in its article about Africa's economic prospects, mentioned a number of positive trends: High commodity prices, favorable demography, greater adoption of productive technologies, improving infrastructure, falling barriers to small business creation, more stable governments, better health care, falling trade barriers, more foreign investment, a growing middle class and indeed, greatly improved air links within Africa, thanks to airlines in countries like Ethiopia, Kenya, and South Africa.
January 2012: South African Airways (SAA) detailed its plans to link Johannesburg to Beijing, both Star (SAL) Alliance hubs. (SAA) envisions Johannesburg as a gateway between Latin America and East Asia, a growing market without any nonstops. It’s also marketing Victoria Falls to Chinese tourists, while targeting the many Chinese migrants and traders now living in Africa. The new Beijing route starts later this month and will operate three times a week with A340-600s.
In addition, (SAA) is expanding its African routes into the Congo. On January 26th it started flights to Pointe Noire the coastal city in the Republic of the Congo, as its 4th new African destination this year and joins Ndola, in Zambia, Kigali in Rwanda, and Bujumbura in Burundi. Flights operate twice-weekly with (SAA)'s 120-seat A319s. Until last year, the route was operated by both Gabon Airlines (GBK) and Trans Air Congo (TSG). Thevan Krishna, (SAA)’s Head of Australasia, commented: “Our new flight to Pointe Noire is a welcome addition to our ever-expanding network on the African continent and offers our customers further access into Central Africa.” He continued: “Pointe Noire is the second-largest city in the Congo, after the capital – Brazzaville, and the main commercial center of the country. Pointe Noire is the centre of the oil industry in the Congo, which is one of the main oil-producers in Central Africa.”
April 2012: South African Airways (SAA) will launch daily, Johannesburg - Maun ERJ-137 service on June 15, operated by its regional partner, SA Airlink.
May 2012: South African Airways (SAA) now flies from Johannesburg via Pointe Noire in the Congo to Cotonou in Benin.
June 2012: South African Airways (SAA) is dropping its nonstop services between Cape Town (CPT) and London Heathrow (LHR) airports from August 15, routing all passenger traffic between the two points through its Johannesburg airport (JNB) hub.
(SAA) operates two flights a day between (JNB) and (LHR) airports, and will increase capacity by +13% by using larger airplanes to accommodate (CPT) traffic. (SAA) operates up to 44 flights a day between (CPT) and (JNB).
The move is part of fleet redeployment plans to make more effective use of long-haul capacity on Accra, Mumbai and Perth routes, and to add Abidjan to the network. Route optimization will focus on routes showing the strongest growth in demand, namely those within Africa and to Asia, Australasia and Latin America.
(SAA)’s General Manager Commercial, Theunis Potgieter said, “(SAA) is redeploying its capacity to routes experiencing expanding demand as part of our larger strategy for growth and increased efficiency within the airline.”
(SAA), which launched direct services between (CPT) and (LHR) in 1992, said the changes “will have an immediate positive effect on (SAA)’s bottom line.”
It cited the UK’s “particularly high” air passenger departure tax, and “air traffic control (ATC) and other fees” as disincentives, pointing out that “many global airlines are increasingly finding flying via the UK challenging.” Even passengers traveling beyond the UK are required to pay “a minimum of £52/$80.4 for transit visas,” (SAA) said.
"Reuters" reports South African Airways (SAA) will raise the fuel surcharge on European flights 1 to 2 euros per passenger starting in July to offset the cost of the (EU) Emission Trading Scheme (EU ETS). (SAA) will participate in the (EU ETS) “under protest.”
(SAA) also said the sale of Star (SAL) Alliance member, British Midland International (bmi) (BMA) to a non-alliance airline had “reduced London’s usefulness as a hub for the Star (SAL) Alliance” members.
(SAA) said that “South Africa is among the top five fastest declining visitor markets to the UK,” according to "VisitBritain" statistics. The market between the UK and South Africa for all carriers has shrunk by -24% in the last three years.
July 2012: South African Airways (SAA) and Qantas (QAN) have been granted an interim extension of permission to code share on flights between Johannesburg (JNB), Perth (PER) and Sydney (SYD) airports by the Australian International Air Services Commission. The extension is valid until the end of March 2013.
The two carriers are seeking a three-year extension of permission for the arrangement, and a decision is expected later this year.
Under the agreement, flights between (JNB) and (PER) are operated by (SAA), while flights to (SYD) are operated by (QAN).
Following the decision, (SAA) General Manager Commercial, Theunis Potgieter said (SAA) would increase the number of flights between (JNB) and (PER) from 6X-weekly to 7X-weekly in mid-August. It will also code share on (QAN)’s seven flights a week between (JNB) and (SYD).
(SAA) has operated the (PER) route for more than 50 years, making it one of the airline’s longest established destinations.
On 12 July, South African Airways (SAA) launched a new regional route from Durban (DUR), South Africa’s busiest sea port located on the Indian Ocean coast, to Lusaka (LUN), the capital of Zambia. The 1,600-kilometer route is offered thrice-weekly and will be operated by (SAA)’s regional partner, South African Express, using CRJ200s. Inati Ntshanga, (CEO) of the operating airline, said: “The objective is to enable Zambia, South Africa and the Southern African Development Community to grow tourism and trade opportunities.”
A340-313 (643, ZS-SXD "Siyanqoba"), painted with design by Adrile le Roux, a first year design student at Stellenbosch University, which was the award winner to challenge South Africans aged between 13 and 21 to design "an iconic logo which captures the spirit of South Africa." The A340-313 transported the South African team and officials to the 2012 Olympics held in London England - - SEE PHOTO - - "SAA-2012-07 - TEAM SOUTH AFRICA.".
September 2012: South African Airways (SAA) expanded its intra-African network on 13 September when it connected its Johannesburg (JNB) hub with Brazzaville (BZV), the capital of the Republic of the Congo. Flights operate twice-weekly (on Thursdays and Saturdays) with A319 airplanes, competing with Interair (ITI) South Africa’s also twice-weekly operations. (SAA) now operates to 28 African destinations.
(SAA) has ranked as Africa’s largest airline for decades, but this is a status that it may soon lose as other airlines on the continent are expanding faster. This year, Egyptair (EGP) offers approximately the same number of seats in its schedules as its South African Star (SAL) Alliance partner, having grown seat capacity by almost +90% in the last decade. This compares with (SAA)’s growth of +6% during the same time period. Meanwhile, airlines such as Royal Air Maroc (RAM), Ethiopian Airlines (ETH) and Kenya Airways (KEN) have grown even faster and more than doubled their capacity.
Having experienced a peak in its financial year ending 31 March 2008, (SAA) has since seen passenger numbers and load factors fall back somewhat. During the same time period, (SAA)’s seat capacity has been relatively stable, which explains why load factors have fallen along with passenger numbers.
(SAA) has a 46% share of domestic seat capacity in South Africa, ranking well ahead of Kulula.com (KUL) (18%), British Airways/Comair (CML) (15%), Mango (MGO) (12%) and 1time (1TA) (9%). The domestic market makes up 55% of (SAA)’s total seat capacity, followed by the intra-African market at 30%. This international market within Africa is also where the airline currently is growing the most.
In the last year, (SAA) has grown its overall intra-African seat capacity by +11%. The Zambian market has climbed from third place to be (SAA)’s biggest African market. Although (SAA) added a new route to Zambia, from Durban to Lusaka in July, it merely adds 200 weekly seats to the market. Instead, the majority of growth comes from capacity increases on two existing routes from Johannesburg; to Lusaka and Ndola.
Of (SAA)’s new routes launched in the last year, all but one (Beijing) are intra-African services; and with 20 A320s in Airbus’ order book, it appears that (SAA) aims to continue growing in the short and medium haul segment. (SAA)'s narrow body fleet currently consists of 11 A319s, two A320s and 15 737-800s.
Meanwhile, (SAA) has rearranged its intercontinental network, which is served using a wide body fleet consists of six A330-200s, one A340-200, eight A340-300s and nine A340-600s.
In the last year, capacity to Europe has been reduced by -18%. Of the airline’s four European routes last year, services between Cape Town and London Heathrow have been dropped, meaning that the airline no longer serves Cape Town with intercontinental flights, which now are all consolidated at (SAA)’s Johannesburg hub. The three remaining European routes are to London Heathrow, Frankfurt and Munich. Seat capacity on the Munich route has, however, been reduced by -20% since last year.
During the same time, (SAA) has boosted its Asian network by +41%, taking advantage of increased traffic flows between the Asian and African continents – as well as connecting traffic onward to its two South American destinations São Paulo in Brazil and Buenos Aires in Argentina. (SAA) now serves three Asian airports non-stop from Johannesburg: Hong Kong, Mumbai, and Beijing. Mumbai has increased from four to six weekly flights in the last year, while Beijing (the hub of (SAA)’s Star (SAL) Alliance partner, Air China (BEJ)) is a new route launched in January.
The 11,700-kilometer route to Beijing is, however, not (SAA)’s longest operation. In North America, (SAA) serves New York (JFK) non-stop – a distance of 12,825 kilometers from Johannesburg. (SAA) also serves Washington Dulles in the United States; however, flights operate via Dakar in Senegal. Remaining to be mentioned of (SAA)’s 11 intercontinental destinations is Perth in Australia.
Mango (MGO) could become the platform for expansion of South African Airways (SAA) in other African markets as part of a plan to set up joint ventures allowing operations outside of South Africa. (SAA) is currently reviewing options to launch West African operations from a regional base in Accra Kotoka airport (ACC) under the "Mango" brand. It also plans to transfer some flights from South Africa to destinations with a leisure focus such as Livingstone Maramba (LVI) and Mauritius Sir Seewoosagur Ramgoolam International (MRU) airports to Mango (MGO), which has a lower operating cost base but currently only operates on domestic routes in South Africa.
October 2012: The South African government has agreed to guarantee ZAR5 billion/$600 million in loans for South African Airways (SAA) for two years. The guarantee will enable the financially troubled carrier to borrow from the financial markets, continuing operations.
According to a government statement, the (SAA) board must develop a turnaround strategy to be approved by the Minister of Public Enterprises in agreement with the Minister of Finance, including a financing strategy for its planned purchase of a short- and long-haul fleet. “The government is committed to working with (SAA)’s management and board of directors to ensure that (SAA) is a viable and a financially sustainable airline,” it said.
South African Airways (SAA) said it is “very much business as usual” following the resignation of most of its board of directors.
Late last month, eight members of the board (Cheryl Carolus (Chairperson), Teddy Daka, Dave Lewis, Russell Loubser, Bonang Mohale, Jabu Ndhlovu, Louis Rabbets and Margie Whitehouse) resigned.
The Minister of Public Enterprises promptly replaced them with eight new board members: Chair, Vuyisile Kona, Andile Mabizela, Andile Khumalo, Bongisizwe Mpondo, Rajesh Naithani, Carol Roskruge, Raisibe Lepule and Nonhlanhla Kubeka.
(CEO), Siza Mzimela also announced her resignation, leaving just four of the original incumbents: Wolf Meyer, Dudu Myeni, Advocate Nkosi-Thomas and Yakhe Kwinina.
Mzimela has been (CEO) of the struggling South African carrier for nearly three years. (SAA) said she would remain in post for “at least two weeks” to allow for “a seamless hand over” and “business continuity.”
Two other General Managers, Theunis Potgieter and Sandra Coetzee, have also resigned and acting executives appointed in their place.
(SAA) said: “The airline views these resignations as a turbulence of a temporary nature which must not be allowed to affect its ability to discharge its core function in a responsible and prudent manner. (SAA) is a resilient company that has the ability to weather the storms.”
The South African government agreed to guarantee ZAR5 billion/$600 million in loans for (SAA) for two years. The guarantee will enable the financially troubled carrier to borrow from the financial markets, continuing operations. According to a government statement, the (SAA) board must develop a turnaround strategy.
(SAA) said: “The board’s immediate focus will be on the completion of a new business approach which, amongst other elements, is intended to ensure that the airline is compliant with the conditions that attach to the guarantee issued to (SAA) by the government.” (SAA) will be responsible for all operational decisions.
(SAA) has agreed with the South African government, its owner, that it will receive a $600 million US dollar loan guarantee to be able to get financing on the capital markets for the purchase of new airplanes and a restructuring plan to return (SAA) to profitability. (SAA) needs to provide the government with a turnaround strategy and financing plan before receiving the loan guarantee. In the last week of September, eight board members have jointly resigned from the board of directors in protest of South African Minister of Public Enterprises Malusi Gigaba's decision to delay the annual general meeting of (SAA).
November 2012: South African Airways (SAA) expanded its network with services to Harare (HRE), the capital of Zimbabwe, on 2 November. (SAA), which already serves Harare with 29 flights a week from Johannesburg, now also offers three flights a week from Durban (DUR) on South Africa’s Indian Ocean coast. Flights are operated from Durban’s new King Shaka International Airport, which only opened in 2010, by SA Express using 50-seat CRJ200 airplanes.
Airports Company South Africa (ACSA) said that flights at Africa’s Johannesburg O R Tambo International Airport (JNB) have not been disrupted by fuel contamination in the airport’s main Jet A1 supply line. (ACSA) confirmed that “off-specification” fuel in the pipeline between National Petroleum Refiners of (SA) (NATREF) and (JNB) had rendered approximately 7 million liters of Jet A1 stored in two tanks unusable. These tanks have been isolated and certified fuel in the other tanks is currently being used for refueling. However, this left the airport with just under one a half day’s supply of fuel. (JNB) normally receives approximately 3 million liters of fuel daily through the dedicated pipeline from (NATREF).
(ACSA) said: “The fuel supply industry, led by Air BP, is working tirelessly to address the situation.” It said the airport was working closely with airlines on a number of measures, including the uptake of fuel at (ACSA)’s other airports, to minimize the potential negative impact on airport operations.
(ACSA) pointed out that (JNB) receives fuel via two alternative supply routes in addition to the primary (NATREF) source. These are dedicated rail tank cars from the coast, and a pipeline from Durban.
(ACSA) Group Communications Manager, Solomon Makgale said: “At this point the airport is operating normally. We remain hopeful that the fuel suppliers will find a solution as a matter of urgency. (ACSA) will provide all the necessary support.”
December 2012: South African Airways (SAA) bears all the scars of a government-owned legacy carrier in terminal decline, accelerated by continued political fumbling and interference which in September 2012 resulted in the mass board walkout and the resignation of three top executives, including its (CEO).
The flag carrier is deeply mired in debt, bereft of a positive outlook. A temporary stop of a government guarantee is unlikely to support a turnaround in 2013 and offers little hope of improvement in South Africa’s troubled aviation sector, while government fumbling continues. Moreover, subsidy of one airline (by providing government guarantees) in a supposedly deregulated domestic market only serves to destabilize competitive operations.
That does not offer a sustainable recipe for an airline industry in a country which relies heavily on dependable commercial air services to support economic activity. Yet, unless its masters in Pretoria miraculously gain, and apply, a clearer vision for (SAA), the future promises only the continuing decline of a once proud airline.
The government has given (SAA) until February to find a new (CEO) following the sudden resignation of (CEO) Ms Siza Mzimela. Mzimela resigned in October, joining eight of (SAA)’s board members and two General Managers who resigned in September.
(SAA) Chairman & Acting (CEO), Vuyisile Kona said the government has given (SAA) until February to propose a replacement (CEO). A sub-committee has been set up to handle the project.
He added that (SAA) is on the verge of selecting a consultancy firm to advise on its future strategy and the renewal of its 58-airplane fleet. The proposed business plan, including its turnaround strategy, must be submitted to the government by the end of January and will be made public in February. “We do not know what the new business plan will look like, but we need to progress to new-generation airplanes, which are cheaper to operate,” Kona said. “We will be replacing the current fleet.”
Ernst & Young managing partner for Ethiopia Zemedeneh Negatu commented: “We are very confident (SAA) will turnaround. It has all the elements for being a dominant carrier in southern Africa.”
South African Airways (SAA) signed a code share agreement with Air Canada (ACN). (SAA) will place its code on (ACN)-operated flights to London from Vancouver and Toronto and from Toronto to New York (JFK) (including flights operated by Air Canada Express). (ACN) will place its code on (SAA)-operated services to Johannesburg from London, New York and Cape Town.
January 2013: This year will be pivotal for South African Airways (SAA) as it looks to establish its future direction. (SAA) is in a leadership crisis once again, following the departure of (CEO), Siza Mzimela in late 2012. South Africa's government has also had to inject a further 5 billion rand/$576 million into (SAA) to keep it afloat. (SAA) now has to find a new (CEO) who can craft a strategy that will turn it into a sustainable business again. (SAA) has to determine where it can grow and how it can participate in the expected development of air transport in the continent. It is looking again at joint ventures (JV) in other African countries such as Ghana, although previous efforts have failed.
South African Airways (SAA) signed a code share agreement with Air Canada (ACN). (SAA) will place its code on (ACN)-operated flights to London from Vancouver and Toronto, and from Toronto to New York (JFK) (including flights operated by Air Canada Express). (ACN) will place its code on South African Airways-operated services to Johannesburg from London, New York and Cape Town.
February 2013: South African Airways (SAA) has suspended acting (CEO), Vuyisile Kona, adding to a recent flurry of management turmoil at the Star (SAL) Alliance carrier. The suspension was effective February 11. “The board of directors of (SAA) announces that after careful consideration of recent developments, it has decided to place the acting (CEO), Vuyisile Kona on precautionary suspension. This is based on certain allegations that have come to the attention of the board, in respect of which the board has a fiduciary duty to investigate,” (SAA) said.
(SAA), which declined to provide any further details about the allegations, added the board has not come to any conclusions about “the veracity or otherwise” of the claims.
This latest upheaval follows a raft of management departures in late 2012, including the sudden departure of former (CEO), Siza Mzimela in October last year. Kona, who was previously the (SAA) Chairman, was named acting (CEO) following Mzimela’s departure, leaving the Chairman’s role vacant. Dudu Myeni was named as Acting Chairman, pending the appointment of a new permanent (CEO).
(SAA)’s board is reviewing applications for a permanent replacement. “The board is confident that this process will be completed by March 31, at which time recommendations will be presented to the Minister,” (SAA) said.
In the meantime, Kuna’s suspension has left the acting (CEO)’s role temporarily vacant. (SAA) has appointed Nico Bezuidenhout, who is currently (CEO) of (SAA) budget carrier Mango (MGO), as an interim replacement.
“The board’s decision to ask Nico to oversee the business in the interim was informed by the need to allow for business continuity, and at the same time to ensure that there is optimal understanding and appreciation of (SAA)’s commercial challenges within the top leadership of the airline during this transitional period. Nico is a very experienced colleague and airline executive, having been appointed (CEO) of Mango (MGO) in 2006. We are very pleased that he agreed to oversee operations and we have every confidence that he will, together with all stakeholders, provide the necessary leadership during this period,” Myeni said.
This latest upheaval comes as (SAA) struggles to finalize its long-term strategy and faces conflict with the National Transport Movement union, which is seeking recognition at (SAA).
The South African government recently agreed to guarantee $600 million in loans for (SAA).
South African Airways ((IATA) Code: SA, based at Johannesburg Oliver Reginald Tambo International (JNB)) (SAA) has started negotiations with Airbus Industrie ((ICAO) Code: AIB, based at Toulouse Blagnac (TLS)) (EDS) and airplane lessors to restructure its order for 20 A320-200s originally placed in 2002. (SAA) (CFO), Wolf Meyer plans to use the pre-payment funds that would be released as part of the transactions to improve the loss making carrier's short to medium term cash requirements.
March 2013: Located 23 km from the city center, operated along with eight other South African airports by the Airports Company South Africa (ACSA), Johannesburg O R Tambo International Airport is the largest airport in Africa, holding off for several years the continent’s #2, Cairo. Despite its dominant position, the airport has flat-lined in terms of passenger growth, handling between 18 and 19 million annual passengers in each of the last three years.
(ACSA) splits its passenger traffic into four categories: International, Regional, Domestic and Unscheduled (Charter). While total traffic at the airport was down -1.3% between 2012 and 2011, due to declines across the latter three sectors (-1.8%, -3.8%, -2.4%, respectively), international passengers increased by +1.9% to just below 8.2 million. New routes like South African Airways (SAA)’s thrice weekly A340-600 operation to Beijing, and (although it collapsed in September 2012) Air Nigeria (NIA)’s thrice weekly Lagos A330 service will have contributed to this growth. Traffic at the South African hub has not got off to the best start in 2013, with January figures showing a -3.6% decline versus the previous year, which was still better than the country’s second airport, Cape Town International, which witnessed a -5.7% monthly drop in passenger numbers.
Traffic seasonality at airports is an important decision making factor for prospective airlines when evaluating new routes, as it allows them to plan their capacity more efficiently, as the carrier is not having to flex its capacity up and down to cope with wild seasonal variations. During the last 12 months of available data, Johannesburg flows peaked at 1.67 million in October 2012, but only fell to 1.44 million in February 2012, representing a variance in monthly traffic of just 16%.
Operating in 11 of Johannesburg’s top 12 routes, is South African Airways (SAA). The home-based carrier is also the dominant airline on the airport’s two biggest routes, both domestic (namely to Cape Town and Durban King Shaka International airports (both also (ACSA)-operated)) with 45 - 50% market share. The partnership between British Airways (BAB) franchise operator, Comair (CML) and kulula.com (KUL) takes second spot, with just below 40% in both markets, with low-cost carrier (LCC) Mango (MGO)picking up the residual market share.
The only monopoly route in the top 12 is the thrice-daily, Emirates Airline (EAD) service to Dubai, which has been operated on a code share basis with (SAA) since 1 June 1997 (as well as the Cape Town to Dubai route). However, Dubai is not the biggest long-haul route, as the five-daily run (South African (SAA) — 2; British Airways (BAB) — 2; Virgin Atlantic Airways (VAA) — 1) to London Heathrow takes that accolade. Europe and indeed Frankfurt, takes the only other remaining top 12 place for a route outside of Africa, due to Lufthansa (DLH) and South African (SAA) both operating single daily flights.
Excluding the domestic market, which is nearly as big as all international markets combined (despite declining by 14% in the last year in terms of weekly flights), it is the UK, (UAE), and Germany that therefore make a similar showing in Johannesburg’s country market profile, being the only non-African nations. Given the long-haul kit that is used on all three routes, all three countries do out-perform in terms of weekly seats, with typically twice as much capacity market share than frequency share.
Frequency growth in the past 12 months has been highest on routes to Mauritius (+36%), Kenya (+29%) and Mozambique (+10%) – the former due to Air Mauritius (MAU) increasing its weekly flights from five to 10 between March 2012 and March 2013. However, over the same time frame, 10 weekly services (-17%) have been chopped from Namibia to Johannesburg, with South African (SAA) and Air Namibia (NAM) both trimming (six and five frequencies respectively), but British Airways Comair (CML) has improved its schedule to daily from six weekly.
Frankfurt Airport, Germany and South African Airways (SAA) celebrated the 60th anniversary of (SAA)'s vital link connecting Johannesburg with Germany's financial center.
The South African Aviation Authority has approved South African Airways (SAA)’s new Required Navigation Performance with Authorization Required (RNP AR) procedures for Cape Town International Airport, which were designed in close cooperation with the Airbus (EDS) ProSky company Quovadis.
It marks the first such clearance in Africa for (RNP AR) (which enables airplanes to fly precisely along a predefined route using on-board navigation systems and the (GPS)-based global navigation system). Customized for (SAA) operations, these techniques will provide shorter tracks than those of conventional methods (allowing for a reduction in flight time and fuel burn on every approach and departure).
The flight tracks used by (SAA)’s new procedures are derived from already in-use visual tracks in and out of Cape Town, and the (RNP AR) development provides a means to fly these shorter tracks even in Instrument Meteorogical Conditions (IMC).
(SAA) took an active role in the project, and in parallel obtained operational approval from the South African Aviation Authority to conduct (RNP AR) operations (which involved the implementation of new airline procedures, data management processes and flight crew (FC) training). “We have all worked very hard to reach this milestone. Now, South Africa is ready for a wider PBN deployment in line with (ICAO) recommendations,” said Captain Johnny Woods, Director of Flight Operations for (SAA). “We have had great support from Quovadis and achieved all our objectives. We look forward to future implementations and procedure design.”
Quovadis is part of the Airbus (EDS) ProSky subsidiary, which also includes the Metron Aviation and ATRiCs companies. ProSky is committed to working side-by-side with air navigation service providers, airplane operators and airport authorities to build a truly collaborative system with greater capacity, better performance and environmental sustainability for all stakeholders.
South African Airways (SAA) will be featuring a full suite of Rockwell Collins’ communications, surveillance and navigation avionics on 20 new A320 airplanes. The selection includes Rockwell Collins’ MultiScan™ Threat Detection System, GLU-925 Multi-Mode Receiver (MMR), and Iridium SATCOM system. Deliveries are scheduled to begin later this year.
The airline also plans to retrofit MultiScan on its current fleet of 11 A319 airplanes.
Rockwell Collins’ MultiScan Threat Detection System, with more than >5,000 systems flying on over 145 airlines today, is a fully automatic airborne weather radar system that combines the latest weather science with advanced engineering concepts to identify and analyze thunderstorm cells, and display the actual weather threat. The end result is reduced pilot (FC) workload, enhanced safety, and greater passenger comfort due to minimizing unexpected turbulence encounters.
Rockwell Collins’ GLU-925 MMR enables airlines and operators to take advantage of evolving Required Navigation Performance (RNP)/Area Navigation (RNAV) and Automatic Dependent Surveillance-Broadcast (ADS-B) capabilities. The GLU-925 fulfills the requirements for airplane navigation position source, Category III Instrument Landing System (ILS), Category I Global Positioning Landing System (GLS), accessing RNP/RNAV airspace (down to RNP Authorization Required 0.1), and meets the GPS position and availability requirements for ADS-B Out mandates.
April 2013: South African Airways (SAA) and Jet Airways (JPL) signed a code share agreement. (SAA) will code share on (JPL) flights between Mumbai, Delhi, Bangalore, Hyderabad, Chennai, and Thiruvananthapuram. (JPL) will code share on (SAA) flights between Mumbai and Johannesburg, Cape Town, and Durban.
(SAA) has named former Airports Company South Africa executive, Monwabisi Kalawe as its (CEO) designate following months of management turmoil.
In February, (SAA) suspended acting (CEO) Vuyisile Kona, building on a flurry of management upheaval in late 2012, when former (CEO), Siza Mzimela and eight board members suddenly left (SAA).
Following Kona’s precautionary suspension, (SAA) appointed Nico Bezuidenhout, (CEO) of (SAA)’s budget carrier Mango (MGO), as an interim replacement. However, the airline has now named Monwabisi Kalawe as Mzimela’s permanent successor.
Kalawe’s has previously worked for state-owned electricity firm Eskom, Nestle South Africa, Airports Company South Africa, Total Facilities Management Company, defense equipment manufacturer Denel, and investment firm Compass Group.
(SAA) said Kalawe will join (SAA) “in the next few weeks.” He will be tasked with implementing the airline’s long-term turnaround strategy. This plan has just been submitted and is aimed at improving (SAA)’s financial sustainability and operational efficiency after (SAA) received $600 million in government-backed loans.
May 2013: Etihad Airways (EHD) and South African Airways (SAA) have signed a memorandum of understanding (MOU) to create a strategic partnership. (SAA) has signed a code share pact with (EHD); the EY code will go on its (SAA) flights to Sao Paulo.
(SAA) and Jet Airways (JPL) signed a code share agreement. (SAA) will code share on (JPL) flights between Mumbai, Delhi, Bangalore, Hyderabad, Chennai, and Thiruvananthapuram. (JPL) will code share on (SAA) flights between Mumbai and Johannesburg, Cape Town, and Durban.
Thales (THL) and the Air Traffic Navigation Services (ATNS) Company of South Africa have a new agreement to replace the legacy air traffic management (ATM) system in the region with a modernized system. The agreement will launch the Thales (THL) TopSky system, the company's (ATM) automation system launched in 2012 consisting of the Thales (THL) Eurocat data fusion, Simcat air traffic control (ATC) simulator, Flowcat air traffic flow management, Aeronautical Information Management and Integrated Tower products.
"South Africa is emerging as one of the fastest growing and complex (ATM) regions in the continent," said Patrick Oszczeda, VP & (CEO) of Thales (THL) South Africa. "This technology acquisition will allow (ATNS) to deploy a truly future proofed technology capable of not only dealing with the issues and challenges of Africa today, but also capable of growing and adapting as the airspace becomes more complex."
July 2013: South African Airways (SAA) and Etihad Airways (EHD) began code share services.
JetBlue Airways (JBL) and South African Airways (SAA) announced an expanded bilateral code share agreement, pending government approval. The code share will connect the carriers’ networks via New York (JFK) Airport and Washington DC Dulles Airport.
(SAA) took delivery of its first two A320s, part of a 20 airplane order placed with Airbus (EDS) in 2010. (SAA) is looking to use the A320s to replace its current fleet of 737-800s.
2 A320-232s (5637, ZS-SZA; 5680, ZS-SZB), ex-(F-WWIJ & F-WWDF) deliveries.
August 2013: Since the demise of 1time (1TA) last November, the South African domestic market has become a virtual duopoly between two companies, South African Airways (SAA) and Comair (CML). (SAA) operates flights under its own name, as well as its own Low Cost Carrier (LCC), Mango (MGO), while Comair (CML) operates full-service flights on behalf of British Airways (BAB), while also having its own (LCC), kulula.com (KUL).
Passenger numbers at South Africa’s three busiest airports (in Johannesburg, Cape Town and Durban) have fallen by -1.8% to 15.43 million in the first six months of 2013. Much of this can be explained by the collapse last November of 1time (1TA), a local (LCC), that had been operating primarily in the domestic market since February 2004. On the plus side, international passenger numbers at the country’s major international gateway of Johannesburg’s OR Tambo International airport, have risen by +4.8% in the period January to June.
Analysis of the traffic mix at Johannesburg airport over the last decade reveals that total passenger numbers peaked in 2007 at 19.3 million. Since then domestic traffic at the airport has fallen by -13% from 11 million to 9.6 million, while international traffic has risen by +9% from 7.5 million to 8.2 million.
With 1time (1TA)’s disappearance from the domestic market, passengers now basically have a choice between South African Airways (SAA), British Airways (BAB) (operated by Comair (CML)), Mango (MGO) ((SAA)’s in-house (LCC)), and kulula.com (KUL) (Comair (CML)’s own (LCC)). In March, kulala.com (KUL) added East London to its Johannesburg network with double-daily flights, while Mango (MGO) added daily flights to Port Elizabeth last December, from both Cape Town and Johannesburg.
September 2013: South African Airways (SAA) reached a deal with 1,000 striking technical workers (MT) for a 6.5% pay rise, after their union had demanded +12%. However, South Africa's political opposition was sceptical about a new turnaround strategy that, it said, lacked detail. Noting that this was the state-owned carrier's 9th turnaround plan in 13 years, the Democratic Alliance party called for privatization: "The plan does not install confidence that (SAA) will be stabilized."
October 2013: Boeing (TBC) signed an agreement with South African Airways (SAA) to launch development of a sustainable aviation biofuel chain in Southern Africa. The agreement was signed during the Corporate Council on Africa's 9th Biennial USA - Africa Business conference. (TBC) and (SAA) are looking to research new developments in technology that they believe will enable the conversion of biomass into jet fuel. "Sustainable aviation biofuel will play a central role in reducing commercial aviation's carbon emissions over the long term, and we see tremendous potential for these fuels in Africa," said Julie Felgar, Managing Director Environmental Strategy & Integration at Boeing (TBC).
Felgar said the new partnership will research feedstocks and other organic sources in South Africa to begin developing a biofuel supply chain for airlines within the region. The project is being monitored by the World Wildlife Fund-South Africa. The two companies did not mention a projected date when they will begin producing biofuel.
Flight tests show that biofuel, which is derived from organic sources such as plants or algae, performs as well as or better than petroleum-based jet fuel. When produced in sustainable ways, biofuel contributes far less to global climate change than traditional fuels because carbon dioxide (CO2) is pulled out of the atmosphere by a growing plant-based feedstock.
Boeing (TBC) and (SAA) believe that new developments in technology will enable the conversion of biomass into jet fuel in a more sustainable manner without competing with other sectors for food and water resources. The World Wildlife Fund-South Africa will monitor and ensure compliance to sustainability principles that would ensure that fuel is sustainable and would lead to genuine carbon reductions.
Aviation biofuel refined to required standards has been approved for a blend of up to 50% with traditional jet fuel. Globally, more than >1,500 passenger flights using biofuel have been flown since the fuel was approved.
November 2013: South African Airways (SAA) faces a pressing need to start moving forward with its new strategic plan, which includes pursuing expansion within Africa and cutting unprofitable long-haul destinations such as Buenos Aires. The new business plan, which was initially completed in Aprril 2013, represents a critical step in finally fixing the long floundering carrier. But (SAA) has not yet implemented any major components of the plan, although most of the pieces have secured the required layers of approval.
Under the new strategic plan, (SAA) will increase operations within Africa, while cutting unprofitable long-haul routes and potentially hand more domestic routes to low-cost subsidiary, Mango (MGO). (SAA) could also start operating alongside new partner Etihad (EHD) on the Johannesburg - Abu Dhabi route, using the capacity freed up from axing highly unprofitable long-haul services, as it increases its reliance on partnerships to provide a stronger network beyond Africa.
The continued delays in implementing the long-term turnaround plan are costly as (SAA) continues to bleed. It needs to move quickly to build on its position in the intra-Africa market, with more flights from South Africa and a possible new base in West Africa, as competition within Africa is starting to intensify. (SAA) also needs to finally move forward in acquiring new wide body airplanes, which were identified in the plan as essential for a sustainable long-haul operation.
SR Technics (SWS) will extend its support of South African Airways (SAA)’s (CFM 56-5C)s for five years. SR Technics (SWS) will continue to service the engines powering South African Airways (SAA)'s A340-200/-300 fleet until 2018, after the contract was extended by five years. "This agreement allows us to drive the bottom line from a cost perspective", said (SAA)'s (CEO), Musa Zwane. The (CFM) International (CFM56-5C) powerplants will be overhauled at SR Technics (SWS)’s shop in Zürich, Switzerland.
(SAA) operates an A340-200 and eight A340-300s, as well as nine Rolls-Royce (RRC) (Trent 500)-powered A340-600s.
January 2014: South African Airways (SAA) reduced its losses for the 2012 - 2013 financial year, but remains heavily in the red.
(SAA) will resume daily nonstop, Johannesburg - New York (JFK) service on March 9.
May 2014: South African Airways (SAA) announced a five-year deal with (SITA) to outsource its domestic network services and desktop and associated server support services. (SITA) will also establish a round-the-clock command center for desktop and network management and will help (SAA) implement various transformational projects in information technology (IT).
June 2014: Despite government efforts to find new local investors, Senegal Airlines (SNG) remains in critical condition, given the poor state of its finances. In January, it was revealed that South African Airways (SAA) and Ethiopian Airlines (ETH) were among a list of carriers that Dakar had courted with a view to their taking over the crippled airline.
However, (SAA) has since discounted itself from the talks, when South African media reports claimed (SAA) Chairwoman, Dudu Myeni and another board member, Lindi Nkosi-Thomas, had accused (CEO), Monwabisi Kalawe of "serious" breaches of governance claiming he had negotiated the purchase of Senegal Airlines (SNG) shares without board consent.
According to the "Beeld Afrikaans" newspaper, an Auditor General's investigation into Kalawe's dealings reveal he had allegedly been trying to acquire a private investor's shares in Senegal Airlines (SNG) with (SAA)'s board only discovering the move, when the Senegalese government approached them about the proposed sale.
South African Airways (SAA) is looking to expand its partnership with Emirates (EAD) or Etihad (EHD) and add a stop in Dubai or Abu Dhabi on its Mumbai and Beijing services. (SAA) faces a challenging future, but its outlook could brighten significantly, if it is able to persuade (EAD) or (EHD), with both of which, it has (relatively limited) code shares, to agree to a comprehensive tie-up.
Improving the viability of at least two Asian routes through stopovers in the Middle East, is among several initiatives aimed at improving the profitability of (SAA)’s long-haul network. All three of (SAA)’s Asian routes and all 10 of its long-haul routes are currently unprofitable, with Beijing seeing the largest losses per flight. (SAA) recently rescheduled its Beijing flights and added a fourth weekly frequency, but believes other changes are needed to turn around the route.
Johannesburg - Hong Kong could also potentially benefit from a stopover, but for now will be maintained non-stop, while (SAA) ponders stops for the Beijing and Mumbai routes.
July 2014: JetBlue Airways (JBL) and South African Airways (SAA) have expanded their code share agreement to include flights between Washington DC and Dakar, Senegal (a move that enables (SAA) to sell tickets to American government workers and contractors under terms of the Fly America Act.
The move comes roughly six months after (JBL) began placing its B6 code on (SAA) flights between two USA gateways (New York and Washington) and several African cities, including Johannesburg, Cape Town, Durban, East London, and Port Elizabeth. (SAA) also has been placing its code on JetBlue (JBL) flights from the Eastern USA since 2011.
(JBL) is not particularly strong at Washington Dulles International Airport (IAD) (it offers seven daily departures mainly to New York and Boston. However, (SAA) asked the USA carrier to add Dakar to the code share relationship, (SAA) VP North American Sales & Marketing, Todd Neuman said. JetBlue (JBL)’s other code share partner at (IAD) (United Airlines (UAL)) was not able to code share on the Dakar route. “Any USA government travel that is traveling under the Fly America Act has to utilize a USA carrier or foreign flag carrier that code shares with a USA carrier,” Neuman explained. “For that reason, it was very important to have this agreement.”
The market, however, is relatively small. Neuman said there’s an estimated 1,800 government passengers flying each year between Washington and Dakar. “There’s also residual traffic because corporations that are flying under government contracts are also required to utilize the Fly America Act,” he said.
(SAA) is the only carrier flying nonstop between the USA and Dakar.
JetBlue (JBL) has recently moved beyond one-way code share agreements and has been putting its code on international flights. It has a similar bilateral code share agreement with Emirates Airline (EAD) for flights to Europe and the Middle East. It has also applied to place its code on Singapore Airlines (SIA) flights to several destinations in Europe and Asia.
South African Airways ((IATA) Code: SA, based at Johannesburg O R Tambo) (SAA) has phased out its only remaining airplane of six A340-200s (6, ZS-SLF)) and ferried it to Lourdes/Tarbes for storage on June 29 according to "Skyliner Aviation."
(SAA) continues to operate 8 A340-300s and 9 A340-600s. At this point in time, only the following airlines still operate the smallest A340: Aerolineas Argentinas ((IATA) Code: AR, based at Buenos Aires Ezeiza) (ARG) (2 airplanes), EgyptAir ((IATA) Code: MS, based at Cairo International) (EGP) (2 of 3 active), and Royal Jordanian ((IATA) Code: RJ, based at Amman Queen Alia) (RJA) (3 of 4 active). Venezuelan national carrier Conviasa ((IATA) Code: V0, based at Caracas Simón Bolivar) (VCV) also has a single A340-200 that is still under maintenance or storage in Bordeaux.
(SAA) currently operates 64 airplanes, and serves 32 countries, 65 destinations, 96 routes and 430 daily flights.
A320-232 (6189, ZS-SZF), ex-(F-WWBX), delivery.
August 2014: South African Airways (SAA) will likely require ZAR50 billion/USD4.64 billion) in private funding it it is to remain a going concern, South African Minister of Public Enterprises, Lynne Brown, has said. “We are looking at guarantees for funding for (SAA). They have to meet conditions of the open market,” she told "Bloomberg" news in Johannesburg adding that funds would come from private investors in the form of loans or bonds, and be backed by the Treasury.
(SAA) has persistently relied on the national fiscus to prop up its operations in the face of growing regional and international competition. Despite generating cumulative losses of roughly ZAR16 billion as of March 2013, Pretoria has rejected calls for (SAA)'s privatization on the grounds that (SAA) is a strategic asset and therefore must be kept going at all costs.
While nine turnaround plans have so far been drawn up with a view to turning the carrier into a profitable entity, none has so far been fully implemented.
A320-232 (6200, ZS-SZG), ex-(F-WWDG) delivery.
November 2014: News Item A-1: South African Airways ((IATA) Code: SA, based at Johannesburg O R Tambo) (SAA) has been rocked by more board-room chaos with Mango ((IATA) Code: JE, based at Johannesburg O R Tambo) (MGO) (CEO), Nico Bezhuidenhout, having been appointed the carrier's (CEO) in the absence of Monwabisi Kalawe, who was suspended by (SAA) Chairwoman, Dudu Myeni, this month.
South Africa's "Mail & Guardian" newspaper stated Myeni provided Minister of Public Enterprises, Lynne Brown, with a list of reasons for suspending Kalawe but did not publicize them.
Brown's predecessor, Malusi Gigaba, appointed Kalawe in April 2013 following the suspension of Vuyisile Kona on allegations of "improper conduct." Kalawe's appointment raised eyebrows at the time given that he was an industry outsider with no experience of the airline industry.
According to "BusinessDay," Kalawe has himself been accused of corruption by Myeni with claims she asked the Auditor-General to investigate claims the (CEO) had negotiated to buy a stake in insolvent Senegal Airlines ((IATA) Code: DN, based at Dakar) (SNG) without the board’s knowledge, and that customers were being charged for a bag-wrapping service they did not receive. Also at issue were fuel-procurement irregularities and Mr Kalawe’s apparent refusal to sign a performance agreement.
Kalawe's suspension is the latest upheaval to have affected (SAA)'s board following the resignation of six members in October.
News Item A-2: South African Airways (SAA) and Sabre Corporation have signed a new multi-year agreement to make (SAA)’s airfares and inventory available in the Sabre global distribution system (GDS).
December 2014: News Item A-1: South African Airways (SAA) increased Johannesburg services: - Maputo from 17x- to 21x-weekly; - Harare from 18x- to 19x- weekly; - Kinshasa from 6x- to 7x-weekly; and -xMauritius rose from 9x- to 10x-weekly.
Air China (BEJ) and South African Airways (SAA) will strengthen their bilateral cooperation within the Star (SAL) Alliance. Some network reconfiguration for both airlines will occur for better passenger and cargo services between South Africa and China, and countries adjacent to both.
News Item A-2: South African Airways (SAA) will be transferred from the South African Department of Public Enterprises (DPE) to the National Treasury, Minister in the Presidency, Jeff Radebe, has announced. Until this announcement, the (DPE) has overseen (SAA)'s operations on behalf of its sole shareholder, the South African government. "Working with the relevant ministries, (SAA) will be transferred from the Department of Public Enterprises to the National Treasury. The Presidency will closely monitor the implementation of the turnaround plans of these (three) critical State-owned companies that are drivers of the economy,” Radebe said.
(SAA) has been beset with administrative problems attributed in large part to a lack of consistent, transparent leadership. Outlining a 90-Day Action Plan aimed at steering the airline back to the full implementation of its Long-Term Turnaround Strategy (LTTS), acting (SAA) (CEO), Nico Bezuidenhout said an Inter-Departmental team comprising representatives from the (DPE), the National Treasury, and (SAA), had been established to accelerate higher-level decision-making processes regarding (SAA).
In addition to making a total of ZAR1.3 billion/USD113.71 million in savings, (SAA) has set in motion plans to attract potential strategic investors with Etihad Airways (EHD) considered to be among the strongest contenders.
On Thursday, December 11, the two carriers announced a deepening of their existing relationship, wherein (SAA) will launch a daily direct Johannesburg O R Tambo to Abu Dhabi International flight from March 29, 2015. The two will expand their code share cooperation agreement with (EHD) placing its ‘EY’ code on (SAA)’s new Johannesburg - Abu Dhabi flights, in addition to 16 of (EHD)’s other services from Johannesburg to destinations across the African continent. In return, South African Airways (SAA) will place its ‘SA’ code on 32 (EHD) routes beyond Abu Dhabi to a range of destinations worldwide.
In addition, the airlines will enhance the alignment of their (EHD) Guest and Voyager frequent flyer programs.
News Item A-3: South African Airways (SAA) is remaining tight-lipped on the continued absence of its (CEO), Monwabisi Kalawe, and its financial situation.
January 2015: News Item A-1: South Africa’s Finance Minister has agreed to guarantee a further ZAR6.5 billion/$564.6 million for South African Airways (SAA), which is battling to continue as a going concern.
(SAA), which is yet to finalize its financial statements for 2013 - 2014, is trying to fix its liquidity, future funding and governance under an urgent ‘90-Day Action Plan.’ At the launch of this push in December, acting (CEO), Nico Bezuidenhout said getting (SAA) back on track with its long-term strategy (LTTS) is “critical to its continued ongoing operations.”
In a bid to stabilize the carrier, the South African Minister of Finance has approved an additional guarantee, taking (SAA)’s total government guarantees to ZAR14.4 billion/$1.25 billion. (SAA) will be able to borrow against the funds, with the government standing as a guarantor in the event of a default. “The additional guarantee will enable (SAA) to finalize its annual financial statements for 2013/2014, making it possible for (SAA) to hold its annual general meeting on Friday, January 30, 2015,” the Ministry of Finance said.
Under the terms of the agreement, (SAA) must submit an implementation strategy for the 90-day action plan within a month, with timelines and the names of accountable managers. Further progress, on governance and working capital management, must be reported monthly, along with a weekly report to the treasury.
(SAA) also has to demonstrate that its long-term strategy is robust and has committed to submit plans within three months for its network, fleet and organizational structure to the government, along with a detailed cost savings plan. According to (SAA), the 90-day plan is on target and it has already completed a review of its international network and fleet requirements.
“The minister, the board, the acting (CEO), and the (CFO) have agreed that to stabilize the company’s financial position, elements of the long-term strategy must be implemented with speed even as the board continues to refine and update the strategy,” the Ministry of Finance said.
News Item A-2: South African Airways (SAA) has completed a long-haul network and fleet strategy review under its critical 90-Day Action Plan.
February 2015: News Item A-1: South African Airways (SAA) has confirmed it is “technically insolvent” and reliant on government guarantees, which stand at R14.3 billion/$1.2 billion.
“(SAA) has been reliant on guarantees from its shareholder [the South African government] for several years and the delay in the release of the financial statements for the 2013/2014 financial year is directly related to the continued weakness of the company’s balance sheet and due to the company being technically insolvent,” (SAA) said.
Earlier this month, South Africa guaranteed another $565 million for SAA so its results for the year ended March 2014 could finally be released. Revenues for the year rose +12% to R30.3 billion and its (EBITDA) loss narrowed 12% to -R374 million. Net figures were not given. (SAA) cut R453 million from its cost base, reducing its (CASK) -5% from 7.05 to 6.19 US dollar cents.
Profits from domestic flights rose +10% to +R791 million, while the contribution from regional flying was up +17% at R761 million. Budget arm Mango (MGO) also reported record profits. Conversely, long-haul is a weak spot for (SAA), with losses widening from -R1.3 billion to -R1.6 billion.
(SAA) is therefore ditching its direct flights to Mumbai and Beijing, replacing them with code share services operated by Air China (BEJ), Etihad Airways (EHD) and its equity partner Jet Airways (JPL). (SAA) said these changes, which form part of its 90-day action plan, will “stem substantial losses,” delivering benefits in the 2015 - 2016 financial year.
The Indian code share services will be onward flights from Abu Dhabi, which (SAA) will start operating March 29 under its enhanced partnership with (EHD). Capitalizing on the success of its regional network, (SAA) is also boosting its own frequencies to destinations such as Mauritius, Zambia, Zimbabwe, and Mozambique.
(SAA)’s results were also affected by the South African Rand plummeting -34% during the 2013 - 2014 financial year. “Nearly 60% of all input costs are priced in foreign currency, while forex revenues represent only 40% of gross income,” (SAA) said. This negative impact was partly offset by R76 million in hedging gains.
Other exceptional items included a R782 million hit from the revaluation of seven wide body airplanes, plus a further R192 million write-down on related spares and inventory.
(SAA) took another R369 million negative effect from the delivery of four new Airbus A320s from a 20-airplane order that it signed in 2002 and renegotiated in 2009. “The contract provides for annual escalations which resulted in the purchase price exceeding the market value at date of delivery,” (SAA) said. “Unfortunately, similar impairments are expected on future deliveries on this contract.”
Celebrating its 81st anniversary this month, (SAA) has just been awarded its four-star Skytrax rating for the 13th consecutive year. “Awards demonstrate that (SAA) can rightfully stand its ground as one of the leading airlines in the world, despite the challenges it faces,” (SAA) acting (CEO), Nico Bezuidenhout said.
News Item A-2: South African Airways (SAA) will present several funding options when its 90-day action plan comes to a close March 24, but the search for an equity partner remains at an early stage.
“While the former shareholder minister signaled that the government would contemplate a strategic equity partner for (SAA), the notion is in its infancy and (SAA) management will present several future-funding options to the board and, in turn, the shareholder by the end of the 90-day action plan period for consideration,” (SAA) said at the release of its 2013 - 2014 results.
Since launching the turnaround push in December, (SAA) has already deepened its relationship with Etihad Airways (EHD), sparking speculation over whether the Abu Dhabi-based carrier might be a potential investor.
(SAA) is also adding a new direct Abu Dhabi service in March, which will be used as a platform to transition some loss-making, long-haul routes to Etihad (EHD)-operated code share services.
“The 90-day action plan period ends on March 24, 2015, where-after implementation of a revalidated long-term strategy will be resumed, albeit trailing 16 months behind schedule,” (SAA) said.
News Item A-3: South African Airways (SAA) (CEO), Monwabisi Kalawe, who has been suspended since last year pending the finalization of an investigation into serious allegations of misconduct, now faces a formal disciplinary hearing.
(SAA) has admitted it is technically insolvent and has had a raft of tribulations affecting top executives in recent times.
Following the conclusion of the investigation by an external company, Edward Nathan Sonnenbergs Forensics, (SAA)’s board has now decided to convene a formal hearing against him. This will be conducted by an independent external chairperson, Advocate Nazeer Cassim, a senior member of the Johannesburg Bar.
Both (SAA) and Kalawe will be parties that be legally represented during the hearing.
(SAA) said it was inappropriate to give details of the charges facing Kalawe, but the allegations “relate to serious misconduct relating, inter alia, to non-compliance with various critical policies and procedures as well as legislation.”
They include South Africa’s Public Finance Management Act, as well as (SAA)’s supply chain management, job evaluation and recruitment policies. The charges also include “gross misrepresentation” to the Minister of Public Enterprises and “failure to act at all times in the best interests of (SAA).”
If Kalawe is found guilty of any of the allegations, the penalty will be determined by the enquiry chairperson. “The disciplinary process remains an internal matter and further communication will be issued by (SAA) once the disciplinary process has been finalized,” the company added.
News Item A-4: February 2015: South African Airways (SAA) could transfer all domestic and short-haul operations to its low-cost carrier (LCC) Mango (MGO) subsidiary acting (SAA) (CEO), Nico Bezuidenhout has said.
Outlining progress made up to Day 60 of (SAA)'s 90 Day Action Plan, Bezuidenhout noted that (SAA) could turn its attention to the still-profitable regional sector, while switching out its loss-making domestic routes to Mango (MGO), whose break-even fare of ZAR900/USD77 for short haul flights, was roughly half that of (SAA) at ZAR1,700/USD146.
The "Business Times" newspaper reports that in (SAA)'s latest financial year, domestic operations generated +ZAR790 million/+USD68 million in operating profit against +ZAR760 million/+USD65 million for regional flights. However, regional flying proved far more profitable, as it accounted for half the capacity (60%) being dedicated to domestic flights.
The cash-strapped national carrier is facing increased competition on the domestic front from budget airlines such as Kulula Air (KUL) and FlySafair (SFA) with SkyWise ((IATA) Code: S8, based at Johannesburg O R Tambo) set to make its début early next month.
South Africa flyafrica (Johannesburg O R Tambo) and sister airlines Zimbabwe flyafrica (Harare International) and Namibia flyafrica (Windhoek International) will also become a threat on the regional front with (SAA)'s cash-cow routes to Zimbabwe, Zambia, Namibia, and Mozambique under threat.
(SAA) has already announced plans to terminate its loss-making Beijing Capital and Mumbai International long haul services later next month with plans to reconfigure its Washington Dulles route by using a stop-over in another, unidentified West African country instead of Dakar in Senegal.
Meanwhile, (SAA) has announced it will now proceed with a disciplinary hearing against its current (CEO), Monwabise Kalawe, suspended last year on allegations of serious misconduct.
"In as far as this is an internal matter, it is not appropriate to divulge the details of the allegations against Mr Kalawe at this stage. Suffice to say that the allegations relate to serious misconduct relating, inter alia, to non-compliance with various critical policies and procedures, as well as legislation, including the Public Finance Management Act, (SAA)’s Supply Chain Management Policy, the Job Evaluation Policy, Recruitment & Selection Policy and the Delegation of Authority Policy, gross misrepresentation (to the Minister of Public Enterprises) and failure to act at all times in the best interests of (SAA)," (SAA) said.
In addition to its precarious financial state, (SAA) has also suffered from chronic leadership deficiencies with Kalawe its fourth (CEO) since 2009. Kalawe's predecessor, Vuyisile Kona, was fired in March 2013 for his irregular appointment of several consultants.
News Item A-5: South African Airways (SAA) has renegotiated lease re-extensions on three Airbus A340s and is working on similar deals for another five, which are expected to cut -R262 million/-$22.5 million in annual costs.
The deal on the first three A340s is already delivering a positive impact of R112 million annually and the agreement on the other five is expected to yield additional savings in excess of >-R150 million later this year.
(SAA) is now 60 days in to its 90-Day Action Plan, which aims to deliver a R1.25 billion operating performance improvement for the financial year ending March 2016. “The strong implementation progress that is being made on the 90-Day Action Plan has seen tangible steps taken to fundamentally change (SAA) in financially quantifiable ways,” acting (SAA) (CEO), Nico Bezuidenhout said.
Network changes, including the axing of (SAA)’s direct Beijing, Johannesburg, and Mumbai services, plus the addition of a new Johannesburg - Abu Dhabi link to serve strategic partner, Etihad (EHD)’s home hub, are expected to deliver -R600 million in annual savings. “(SAA) will announce further network reconfigurations in the coming months as well as new, commercially attractive destinations,” Bezhuidenhout said.
(SAA) has also completed approximately 40% of its contract renegotiations, delivering -R91 million in annual savings.
The 90-Day Action Plan aims to put (SAA) back on track with its Long-Term Turnaround Strategy (LTTS). However, Bezuidenhout noted the South African Rand has lost -40% in value, and the cost of oil has halved since the plan was devised in 2013.
“This fundamentally impacts on airplane economics and demand patterns. Thus a review of (SAA)’s overall response is required, culminating in amendments to (SAA)’s network structure, fleet solution and financial forecasting and planning,” (SAA) said.
March 2015: South African Airways (SAA) said it has returned to “relative stability” after completing a 90-Day Action Plan as scheduled on March 24.
The 90-Day Action Plan was launched December 9, 2014, covering liquidity, future funding, governance, assets and transparency. (SAA) plans to hold a media conference in mid-April to discuss the audited results of the urgent turnaround push.
“We have worked closely with our shareholding ministry, [the] National Treasury, to work toward and realize the objectives of the 90-Day Action Plan,” (SAA) acting (CEO), Nico Bezuidenhout said.
Since December, (SAA) has more than doubled its code share ties with Etihad Airways (EHD) to cover 51 routes. It has also launched flights to (EHD)’s Abu Dhabi home base, replacing some direct services, and resumed year-round, nonstop flights between Johannesburg and New York.
“Since first signing our codeshare agreement in 2013, the important partnership between (SAA) and Etihad Airways (EHD) has grown positively. Our deepening relationship not only sees both airlines enjoy network expansion through code sharing, but together we are exploring means to share knowledge and best practice across a wide variety of aviation related and commercial matters,” Bezuidenhout said.
(SAA), which said it was technically insolvent in February, has undergone five (CEO)/acting (CEO) changes in just two years. It is seeking a strategic equity partner and has previously warned that full implementation of its long-term turnaround strategy (LTTS) is “critical to its continued ongoing operations.”
Now (SAA)’s focus will turn to this 12-year, four-phase turnaround plan, which was presented to the government in September 2013. This strategy aimed to get (SAA)’s high costs and debts under control, improve yields, stabilize (SAA) and get it to a position of financial independence. It also included an 18-month network rationalization, plus alliance and fleet plans.
April 2015: News Item A-1: South African Airways (SAA) is estimating that its 90-Day Action Plan, which concluded March 24, will improve its full-year (EBITDA) by +R1.25 billion/+$103.4 million.
This breaks down into R440 million from (SAA)’s network revamp, R290 million in fleet savings, R100 million from getting its Long-Term Turnaround Strategy (LTTS) back on track and R425 million from the renegotiation of over 150 supplier contracts.
Detailing the audited results of the action plan, (SAA) acting (CEO), Nico Bezuidenhout said he had hit the (EBITDA) target laid down at the launch of the rapid turnaround plan last November. “This represents the achievement of our target set for the 90-day period, but is by no means the full potential of what we can achieve as we continue to review every aspect of our business,” Bezuidenhout said.
(SAA), which been battling management instability and poor liquidity, launched the 90-day plan to stabilize its business. It covered liquidity, future funding, governance, asset optimization and improved communication. However, Bezuidenhout said “the real task” of getting back on track with its (LTTS) is still “at the starting block.”
The troubled carrier received a going-concern guarantee from the National Treasury on December 22, enabling it to finalize its annual financial statements and hold its (AGM). It has also “investigated several future funding models” and will present its recommendations to the Treasury.
Governance at (SAA) has been overhauled and a number of contracts have been renegotiated, including lease re-extensions on three of (SAA)’s eight Airbus A340s, which are expected to deliver R112 million in annual savings.
“Further airplane lease extensions and renegotiations currently in play are expected to yield additional savings in excess of >R150 million later in the year. Total savings expected amount to R262 million.”
(SAA) has also axed loss-making flights from Johannesburg to Beijing, Johannesburg and Mumbai, replacing them with onward flights from Abu Dhabi, which it launched March 29 after strengthening relations with Etihad Airways (EHD). “(SAA) has also grown its sub-Saharan African network due to strong commercial demand with frequency additions between Johannesburg and Maputo, Harare, and Mauritius among others,” it said.
Finally, (SAA) said it has started to “right-size its human capital through a natural attrition process.”
News Item A-2: South African Airways (SAA) (CEO) Monwabisi Kalawe, who has been on suspension since last year, will resign with immediate effect in return for six months’ pay, plus leave, following an arbitration hearing.
Kalawe was named as (SAA) (CEO) in April 2013, but was suspended last year on allegations of misconduct. In an earlier statement, (SAA) said these charges included “gross misrepresentation” to the Minister of Public Enterprises and “failure to act at all times in the best interests of (SAA).”
Nico Bezuidenhout, who has been (CEO) of (SAA) low-cost airline Mango (MGO), since 2006, was re-appointed as acting (CEO) during Kalawe’s absence.
(SAA) announced formal disciplinary proceedings in February, but the two sides reached an arbitration agreement on April 17. “During the arbitration proceedings, both parties agreed that the employment relationship between Mr Kalawe and (SAA) had irretrievably broken down and that Mr Kalawe would not seek to continue employment at (SAA),” SAA said.
Kalawe will be paid his contractual three months’ notice and outstanding leave, plus a further three months’ pay for resigning with immediate effect, “thus rendering further disciplinary proceedings unnecessary.”
“The parties believe that this resolution avoids further expensive and protracted litigation, which is not in the interest of either party and is ultimately in the best interests of both parties and the public good. This settlement will enable (SAA) to focus its full attention on the operational challenges facing (SAA).” The troubled carrier has just completed an urgent 90-day turnaround push.
(SAA) has undergone five (CEO)/acting (CEO) changes in just two years. Its management remained fairly stable until late 2012, when former (CEO), Siza Mzimela and eight board members suddenly left (SAA). Mzimela’s acting successor, Vuyisile Kona, was then put on precautionary suspension and Bezuidenhout was brought in from Mango (MGO) to temporarily lead (SAA). Kalawe was appointed and suspended, and Bezuidenhout became acting (CEO) for a second time.
Kalawe’s has previously worked for state-owned electricity firm Eskom, Nestle South Africa, Airports Company South Africa, Total Facilities Management Company, defense equipment manufacturer, Denel, and investment firm, the Compass Group.
June 2015: South African Airways (SAA) has backed out of a strategic partnership agreement with Emirates (EAD) at the eleventh hour, the "South Africa's Times" newspaper has reported.
The deal, valued at USD165 million, was negotiated in secret over the past few months and would have seen (SAA) enter into an expanded code share agreement with Emirates (EAD). Fellow (UAE)-based carrier, Etihad Airways ((IATA) Code: EY, based at Abu Dhabi International) (EHD), had also tendered a proposal, the paper added.
A signing ceremony had been scheduled for the Four Seasons Hotel George V in central Paris with Emirates (EAD) President, Tim Clark to sign on behalf of his airline. However, (SAA) Chairwoman, Dudu Myeni reportedly did not pitch, while (CEO), Nico Bezuidenhout was "instructed not to sign the agreement."
Neither party has yet to officially respond to the reports, though there have been calls for Myeni to appear before a South African parliamentary portfolio committee to explain what exactly happened.
(SAA)'s sole shareholder, the South African government, is attempting to transform (SAA) into a profitable, self-sustaining entity, thus eliminating (SAA)'s near total reliance on the national fiscus for funding.
The cash-strapped South African national carrier recently embarked on its Long-Term Turnaround Strategy (LTTS) having completed a 90-Day Action Plan at the end of March. The short-term plan saw ZAR1.25 billion/USD107.3 million in savings being made to (SAA)'s budget through the renegotiation of various supplier and aircraft-lease contracts. Various loss-making routes (to South America, China, and India) have also been dropped.
November 2015: South African Airways (SAA) has appointed Musa Zwane as temporary acting (CEO), its seventh executive to hold the top post in less than four years. Zwane is the Head of (SAA)’s Maintenance division.
(SAA) spokesman, Tlali Tlali said the latest appointment is part of a “rotation” of senior executives into the (CEO)’s chair on an acting basis. He said (SAA) is seeking a permanent holder of the position and would be appointed “as soon as the process has been finalized.” He could not give any timescale for when this would happen.
Loss-making (SAA) has been in turmoil for some time, with a succession of senior executives being suspended or resigning. Earlier this year, (SAA) was said to be technically insolvent and has been reliant on governmental financial support.
The company has been under pressure for several reasons, including the drop in value of the South African rand against the USA dollar, its continuing use of uneconomic Airbus A340 wide bodies (although this problem has eased with the drop in fuel prices), and increasing competition in African markets from the Persian Gulf “Big Three” carriers, which are rapidly expanding into the continent.
December 2015: The South African Treasury has ordered South African Airways (SAA) to conclude a swap transaction with Airbus Industrie (EDS) wherein (SAA), the state-backed carrier will swap the purchase of ten A320-200s for five A330-300s leased directly from (EDS). The announcement follows the expiration of an Airbus-specified December 21 deadline for (SAA) to have decided on a way forward for its outstanding A320 orders.
Earlier this year, (SAA)'s board recommended the plan be amended wherein (SAA) would have acquired five A330-300s on sale/lease back agreements through a South African firm, and denominated in South African Rand (ZAR). Though the deal would have cushioned (SAA) from the impact of a depreciating Rand, it would have left it open to potentially crippling debt in the form of USD40 million worth of Pre-Delivery Payments (PDP) payable in the event (SAA) did not find a suitable local lessor come the December 21 deadline.
"The implementation of the deal in this manner will mean that (SAA) will no longer be required to pay additional (PDP)s to Airbus (EDS), which would have amounted to approximately USD40 million," Treasury said. "Also, as (SAA) takes delivery of each of the A330s, the (PDP)s that have already been paid, which total just more than >USD100 million, will be refunded by (EDS). (SAA) will not be required to recognise impairments, as it will no longer be acquiring aircraft. It had been estimated that such impairments could have totalled in excess of >ZAR1 billion/USD67.8 million."
The agreement is expected to be finalized by December 28.
March 2016: South African Airways (SAA) is launching code share flights with JetBlue Airways (JBL) on (SAA)’s Washington, DC (IAD) - Accra route.
July 2016: News Item A-1: Courting even further controversy, beleaguered national carrier South African Airways (SAA) abruptly cut its ties with little-known ‘boutique financier’ BnP Capital.
The board had appointed BnP Capital to advise it on the restructuring of its R15bn debt and to raise the funding, in return for a R256 million/$17.9 million success fee. Possibly as a result of the public outcry and subsequent political pressure, (SAA) has now terminated its relationship with the company.
On July 21 (SAA) said: “(SAA) has taken a decision to terminate the services of BnP Capital as a financial services provider to the airline. The effect of this decision means that (SAA) has terminated both its appointment of BnP Capital as Transaction Advisor and the appointment to source funds on behalf of the airline.“ . . . (SAA) denied that the suspension of Treasurer, Cynthia Stimpel had anything to do with her questioning the BnP Capital deal. (SAA) said she was suspended for ‘misconduct’ and that Michael Kleyn has been appointed as acting group treasurer.
(SAA) also continues to cross swords with Finance Minister Pravin Gordhan and the National Treasury, which confirmed that it will not grant a R5bn guarantee to (SAA) for the tabling of its financials in parliament, unless a new board is appointed.
Recently, (SAA), the struggling national carrier once again failed to submit its financial statements for the 2014/15 period, forcing the Treasury to request another +2 month extension. This is the fourth time (SAA) has failed to submit financial statements. The new deadline is September 15.
Treasury spokeswoman Phumza Macanda said: “Treasury recognizes the need to have a full-strength board with the full range of skills required to oversee the turnaround of (SAA) and is working to advance the process for appointing such a board.”
Opposition party, the Democratic Alliance (DA), has said it believes application should be made to a high court for an order to place (SAA) under supervision and commence business rescue proceedings. "This is to further prevent . . . [Chairwoman] Myeni and her dysfunctional board from driving (SAA) deeper into the ground and threatening our economy," Alf Lees, DA MP and shadow Deputy Minister of Finance said.
Lees maintained that under Myeni's leadership, (SAA) has been plagued with financial problems "with assessed losses of -R18 billion to date and little sign of a turnaround".
News Item A-2: "Africa’s First Biofuel Passenger Flights Take Off" by Mark Nensel, July 18, 2016.
Johannesburg-based South African Airways (SAA) and (SAA) subsidiary low-cost carrier (LCC) Mango (MGO) flew Africa’s first passenger flights with sustainable aviation biofuel on July 15.
A combined 300 passengers were flown on separate (SAA) and Mango (MGO) flights from Johannesburg to Cape Town on Boeing 737-800s in a blend of 30% aviation biofuel. The biofuel is produced from a nicotine-free tobacco plant called Solaris created by the South African arm of Italian bio-engineering company Sunchem, processed by California-based biofuel refiner, AltAir Fuels and delivered by Dutch bio-jet-fuel supplier SkyNRG.
In 2013, Boeing (TBC) and (SAA) began their collaboration to produce sustainable aviation fuels. Project Solaris was launched in 2014 as an effort from SkyNRG, Sunchem SA, (SAA) and (TBC) to develop sustainable biojet fuel from the converted oil from the Solaris plant seed.
In 2015, Project Solaris earned the Roundtable on Sustainable Biomaterials (RSB) certification. The (RSB) certification provides a model to further expand the production of the Solaris crop in a sustainable way.
“Over the last two years Sunchem SA worked side by side with local farmers in Marble Hall, Limpopo [South Africa] to grow the Solaris crop and make today’s biofuel flight a success,” Sunchem SA (CEO), Hayo de Feijter said. “It shows that the patented Sunchem Solaris technology opens a new market for Southern Africa and beyond.”
“(SAA) is committed to a sustainable future and this flight highlights the steps we are taking to protect and preserve our environment while creating opportunities for the economic development of our people,” (SAA) Acting (CEO), Musa Zwane said.
Additionally on July 15, the partners launched a sustainability plan called the Southern Africa Sustainable Fuel Initiative (SASFI) to ensure a long-term domestic fuel supply for (SAA) and other regional fuel users.
Boeing (TBC) described the goal of the initiative is “to scale-up over the next several years to gain additional biofuel capacity. If successful, farmers will be able to tap into local and global demand for certified feedstock without adverse impact to food supplies, fresh water or land use.”
October 2016: News Item A-1: South African Minister of Finance, Pravin Gordhan, has approved the disbursement of a ZAR5 billion/USD351 million state-backed guarantee to struggling South African Airways (SAA).
News Item A-2: (AAR) (AFD)/(ALC) signed a 5-year agreement to provide power-by-the-hour component inventory management and repair services to South African Airways (SAA) Technical. The contract is valued up to $125 million.
December 2016: News Item A-1: South African Airways (SAA) has taken delivery of its 1st of 5 new leased Airbus A330-300s, becoming Airbus (EDS)’s 1st Southern African operator of the aircraft type.
(SAA)’s A330-300s are configured in a 2-class cabin layout with 46C seats in business class and 203Y in economy class seats.
Airbus (EDS) said the aircraft will introduce “new levels of on board comfort, including connectivity for (SAA)’s passengers and enhanced operating efficiencies for (SAA).”
The A330-300 has a 242-tonne maximum takeoff weight and can cover distances of up to 6,350 nautical miles in flights up to 15 hours in duration, according to (EDS). This payload/range capability allows the aircraft to be deployed across (SAA)’s long-haul, intra-Africa and peak domestic routes.
News Item A-2: Rolls-Royce (RRC) secured new $180 million TotalCare service contract from South African Airways (SAA) for (Trent 700)s for +5 more Airbus A330s, extending the (SAA) program to cover 11 total aircraft.
News Item A-3: "Airlines Panic As Nigeria, and Ghana Run Out of Aviation Fuel" by Wole Oyebade, "Guardian NG" December 12, 2016.
Foreign airlines operating in Nigeria are panicking over current fuel shortage on the West African coast that may affect their operations especially as the Yuletide season beckons. While Nigeria, which is the major market on the continent, is running short of supply to airlines, neighboring Ghana that has lately become the aviation fuel hub for most airlines, is facing a similar challenge.
The "Guardian NG" learnt that the development was already a major source of concern to operations, as some airlines with Nigerian passengers have begun to make a detour in Libreville, Gabon, for fuel. Aviation sources say airlines may begin to ration flights to Nigeria during the festive season, especially when there is no guarantee of getting fuel in neighboring countries for top-up and this could frustrate business tourism by jacking up cost of domestic and international travels.
Aviation fuel, otherwise called Jet-A1, is a specialised type of petroleum-based product used to power aircraft and normally accounts for >30% of the operation costs of an airline. In Nigeria, Jet-A1 is 100% imported and subject to the vagaries of the foreign exchange market. In the last 12 months, aviation fuel has steadily climbed from N104 to N240 per litre in Lagos and as high as N270 in northern part of the country.
A foreign airline's Head of Operations (who would not want to be named) told The Guardian that the hope of picking fuel from Kotoka International Airport in Ghana's capital city of Accra, despite the extra cost, was dashed last week when the Ghanaian marketer could not supply the needed quantity. He hinted that out of the 30,000 litres requested to top up for the long-haul flight, the marketer provided only 15,000 litres.
"We are becoming apprehensive because that is not a good sign at all," he said. "Without fuel, there are no flight services. In the last 12 months, there has been no fuel in Nigeria. The priority is not on aviation fuel but on Premium Motor Spirit (PMS). That is the truth. Despite efforts to plan ahead with your marketers, fuel shortage can just hit you in the face. No one wants to be in that dire situation."
Regional Manager, North, West and Central Africa for South African Airways (SAA) Ohis Ehimiaghe, confirmed that development. But he gave the assurance that "(SAA) is here to stay in Nigeria."
(SAA) is among airlines picking passengers in Nigeria but fueling in Ghana. He said that shortage could be expected "since all of us are queuing up in Ghana for fuel."
Ghana's government in July slashed the price of aviation fuel by 20% as part of its plan to make Accra the West African hub for air travel. The price cut was attractive as most airlines began to fuel in Ghana.
The (SAA) official said that for long, airlines had been battling scarcity of Jet A1, noting that non-availability of the product for several months has done incalculable damage to their operations. He added: "In the last 2 weeks, there has been total dryness of aviation fuel supply. We have to go to neighbouring countries, especially Ghana to lift fuel. Ghana is running dry of the commodity too. There are times when we have fuel in abundance but many times we don't have any at all."
He said that finding an alternative airport to lift fuel does not only inconvenience an airline but also means additional operations cost. "We are fortunate that South Africa Airways (SAA) has huge operations in Ghana; so, it is easier to get our ground handling company and staff to service our operations quickly. Our Abuja flights have been flying by Libreville to lift fuel. This is an additional cost to our operations," Ehimiaghe said.
Executive Secretary of Major Oil Marketers Association of Nigeria (MOMAN) Obafemi Olawole, said that the shortage could be blamed on difficulty in sourcing foreign exchange, often not available to importers at the interbank market rate. Olawole said that its members were doing their best to make the product available in Nigeria, but did not have inadequate support from key government agencies.
Minister of State for Aviation Hadi Sirika, had recently assured that scarcity of JET-A1 would soon end when government finalises work on Kaduna and Port-Harcourt refineries that would be dedicated solely to the refining of that fuel type. Sirika said that the refining of the product in Nigeria would help to bring down the rising cost of aviation fuel.
Meanwhile, apex regulatory body, the Nigerian Civil Aviation Authority (NCAA), has suspended at least 5 cabin crew trainees for allegedly testing positive for Tetra Hydro Cannabinol (THC), a major active ingredient contained in marijuana. (NCAA), on account of the alleged drug-related offences, suspended medical certificates of the unnamed culprits for 180 days.
Spokesperson of the authority, Sam Adurogboye, said the 5 tested positive for marijuana during a Multi-drug Screening Test (MDST) conducted on participants of the Cabin Crew Training Basic Course - 30 (CCTB-30) at the Nigerian College of Aviation Technology (NCAT) Zaria, Kaduna State on June 2, 2016.
Adurogboye said upon receipt of the test result from (NCAT) Zaria where they went for training before they got involved, (NCAA) issued a letter of investigation (LOI) to the affected crewmembers and they responded. (NCAA) has also ordered them to undergo rehabilitation for psychoactive substance abuse under the strict supervision of a consultant psychiatrist at designated medical centers forthwith.
At the end of the rehabilitation, a report is expected to be forwarded in strict confidence by the medical center to the (NCAA) for consideration of re-issuance of their medical certificate in accordance with the provisions of Part 184.108.40.206 (a) of the Nig. NCARs 2015. He assured the traveling public that (NCAA) was very detailed in its oversight activities over the industry in the interest of safer skies in Nigeria and violations are viewed seriously.
May 2017: Hawaiian Airlines (HWI) begins new interline relationship with South African Airways (SAA) covering many African cities.
July 2017: The South African government has had to step in to pay a looming loan repayment from South African Airways (SAA) to prevent (SAA), the national carrier from defaulting.
The move follows a $350 million bailout by the government, which had to provide guarantees for (SAA) in 2016.
The South African Government National Treasury said it had transferred funds to (SAA) “to pay back its debt to Standard Chartered Bank, thereby preventing a default.” Failure to have done so “would have triggered a call on the guarantee, leading to an outflow from the National Revenue Fund and possibly resulting in elevated perceptions of risk related to the rest of (SAA)’s guaranteed debt.”
The parliamentary opposition party, the Democratic Alliance, described the government’s action as “a blow to the credibility of both the (SAA) board and to the National Treasury. This emergency funding for (SAA) indicates the serious crisis that (SAA) has been mismanaged into.” (SAA) has been struggling financially for several years. It made a net loss of -ZAR1.5 billion/-$111 million for the year ended March 31, 2016, the last period for which figures are available. This, however, was a considerable improvement on the previous year, when the net loss reached -ZAR5.6 billion.
(SAA) has been hamstrung by an increasingly elderly and fuel-inefficient long-haul fleet based around the Airbus A340. It has also been plagued by unsettled management, with a succession of (CEO)s and Chairpersons in recent years, several of whom have been suspended for alleged misdemeanors.
Like many African airlines, (SAA) is also coming under pressure from the 3 big Middle Eastern carriers, which are rapidly expanding into Africa and siphoning off traffic to their Gulf hubs.
The government has been seeking to recapitalize (SAA) for some time, the National Treasury said. “Several options are being explored and an update will be provided during the Medium Term Budget Policy Statement in October 2017. The Government will do everything in its power to ensure that (SAA)’s turnaround strategy is implemented. (SAA) remains a strategic asset and in its role as flag carrier, it serves as an economic enabler with direct and indirect benefits across a wide range of economic activity.”
Click below for photos:
SAA-A330-243 - 2013-03
SAA-A330-300 - 2016-12.jpg
0 727-200F (JT8D), 2 RTRD. FREIGHTER.
0 737-230 (JT8D-15) (701-22116, /81 N392AS), EX-(DLH)/(ASM), (SFA) LSD. 4 RTND. 20C, 87Y.
0 737-236 (JT8D-15A) (670-21802, /80 ZS-SIN), EX-(BAB)/(LAN), (SFA) LSD 2000-09 (628-21792, ZS-SIO 2000-11) (644-22026, 2000-12) (21801). (669-21891, ZS-SIS), RTT (SFA), LST (CML) 2002-12. 21790 RTND (SFA), LST (NAM). 21792 RTND (SFA) 2004-07. 20C, 87Y.
0 737-236 (JT8D-15A) (662-22029, /80 ZS-SIV; 722-22031, /80 ZS-SIW), EX-(LDE), (GEF) 5 YR LSD 2001-07. 22029; 22031; WET-LST (TNZ) 2003-03. 22029; 22031; RF (TNZ) & STORED AT JOHANNESBURG. 20C, 87Y.
4 737-244 (JT8D-17A) (829-22586, /82 ZS-SIG "MARICO;" 835-22587, /82 ZS-SIH "KEI;" 836-22588, /82 ZS-SII "BERG;" 881-22828, /82 ZS-SIM "UMGENI") 2 (ETOPS), (SFA) 66 MTH LSD 2000-06. 22584; 22591; WFU IN STORAGE 2005-01. 22581 WFU 2005-03. 22589 RTND (SFA) 2005-03. 22586; 22591; RTND (SFA), LST (VCA). 19C, 88Y.
2 737-244F (JT8D-17A) (809-22583, /81 ZS-SID "ORANJE/"ORANGE;" 828-22585, /82 ZS-SIF "KOMATI" - - SEE PHOTO - - "SAA-737-200F-2009-08"), (CONVERTED 1995-044 & 1995-08), (SFA) 66 MTH LSD. FOR (SAA) CARGO OPS. FREIGHTER.
2 737-3YOF (CFM56-3) (26072, SZ-SBB), (GEF) LSD 2007-11, EX-(N701JZ), FOR (SAA) CARGO OPS. FREIGHTER.
17 737-800 (CFM56-7B27) (561-29248, /00 ZS-SJA; 688-30006, /00 ZS-SGF; 746-30007, /00 ZS-SJI; 711-32353, /00 ZS-SJG; 725-32354, /00 ZS-SJH; 807-32355, /01 ZS-SJK; 819-32356, /01 ZS-SGL), 32356; WET-LST (TAV) 2001-04. 32358 WET-LST (SBE) 2003-05. 32357 LST (TAV) 2003-04. 32358; LST (SBE) 2004-04 FOR 6 MTHS. 32353 LST (SBE) 2004-04. 32357 RF (TAV) 2004-10. 32353 RF (SBE) 2004-11. 32356; 32358; WET-LST (TAV) 2005-04. 32356; RF (TAV) 2005-11. 32353; 32354; 32355; 32356; WET-LST (MGO). WITH WINGLETS. 32C, 125Y.
4 ORDERS 737-800 (CFM56-7B) (GEF) LSD:
0 747SP-44 (JT9D-7FW) (288-21134, /76 ZS-SPC "MALUTI;" 298-21254, /76 ZS-SPE "HANTAM"), 21134 LST (AVL), 21254 LST (AJS). (21134, 6 MTH LST (NAM) TIL 1999-12) (21263 SCRAPPED 1999-10). 21133 SCRAPPED AT MARANA 2004-11. 21134; DONATED TO (SAA) MUSEUM SOCIETY IN RAND, IN THE SOUTH OF THE CITY - - 2006-08. 21254; BROKEN UP 2008-09. 8F, 28C, 224Y.
0 747-244B (JT9D-7R4G2) (154-20237, /71 ZS-SAL "TAFELBERG;" 158-20238, /71 ZS-SAM "DRAKENSBERG;" 160-20239, /71 ZS-SAN "LEBOMBO;" 194-20556, /72 ZS-SAO "MAGALIESBERG;" 198-20557, /72 ZS-SAP "SWARTBERG"), 20553 WFU 2003-10. 20556 BROKEN UP 2003-06. 20557 BROKEN UP 2004-02. 20239 RTRD 2004-02, DONATED TO (SAA) MUSEUM SOCIETY. 20238 SCRAPPED 2004-07. 12F, 47C, 232Y.
0 747-212F (JT9D-7Q) (22245), EX-(STT), (GRB) 5 YR LSD, 24127 RTND (GRB), LST (NWA) 1999-10.
0 747-200SF (JT9D-7Q) (CONV TO F BY HAECO 1995-09).
0 747-312 (JT9D-7R4G2) (598-23031, /84 ZS-SAC "SHOSHOLOZA;" 583-23027, /83 ZS-SAJ "NDIZANI"), 23031 WFU 2004-05. 23027; RETIRED 2008-09. 14F, 61C, 255Y.
0 747-344 (JT9D-7R4G2) (577-22970, /83 ZS-SAT "JOHANNESBURG;" 578-22971, /83 ZS-SAU "CAPE TOWN"), 22970 LST (AID) 2003-12. 22971 WET-LST (ANG) TIL 2005-01. 14F, 61C, 258Y.
0 747-357 (JT9D-7R4G2) (585-22995, /83 ZS-SKB; 586-22996, /83 ZS-SKA), (GEF) LSD), EX-(SWS) 2000-10, (FLL) LSD. 22995 RTND 2003-09. 22996 RTND 2003-12. 14F, 61C, 296Y.
0 747-444 (RB211-524H) (827-24796, /91 ZS-SAV "DURBAN;" 861-25152, /91 ZS-SAW "BLOEMFONTEIN;" 943-26637, /92 SZ-SAX "KEMPTON PARK;" 995-26638, /93 ZS-SAY "VULINDLELA"), 24796; 25152; ST (CAT) FOR CONV TO F. ALL WFU. FOR SALE OR LEASE. 11F, 35C, 285Y.
0 747-444 (RB211-524G/H-T) (1162-28468, /98 ZS-SAK "IBHAYI;" 1187-29119, /98 ZS-SAZ "IMONTI"), ALL WFU. FOR SALE OR LEASE. 28468; ST (TRX) 2008-09. 11F, 39C, 285Y.
0 747-4F6 (CF6-80C2B1F) (1158-28959, /98 ZS-SBK "THE GREAT NORTH;" 1167-28960, /98 ZS-SBS), EX-(PAL). ALL WFU. FOR SALE OR LEASE. 10F, 39C, 288Y.
0 767-2B1ER (PW4060), GUI LSD, 32C, 168Y, RTND (LAM) 2000-03.
0 767-266ER (JT9D-7R4E) (99-23180, ZS-SRC), EX-(EGP), RTND UT FINANCE 2004-03. (ETOPS).
0/0 ORDERS 777-200 (LR VERSION). 4/3 ORDERS CANCELED.
0 MD-80, (SFA) WET-LSD 2000-05, 3 RTND.
0 A300B2K-3C (CF6-50C2R) (039 PARTED OUT 2000-10). 040, 032, PARTED OUT 2001-05, TO (YCU).
0 A300B4-203 (CF6-50C2) (222 LST (PAL) (138; 192; ST (ONU) AND 192 LSD BACK 2000-12), 222 ST (MCG) 2001-07.
0 A300F4-203 (CF6-50C2).
10 A319-131 (V2522-A5) (2268, /04 ZS-SFD; 2281, /04 ZS-SFE; 2308, /04 ZS-SFF; 2326, /04 ZS-SFG; 2355, /05 SZ-SFH; 2375, /05 ZS-SFI; 2379, /05 ZS-SFJ; 2418, /05 ZS-SFK; 2438, /05 ZS-SFL; 2469, /05 ZS-SFM; 2501, /05 ZS-SFN), LSD. 2281; TO (FSJ). 25C, 95Y.
0 A320-231 (V2527-A1), TO BE TRADED IN TO FLIGHTLEASE (SWS), (243; 249; 250; 251; 334; 335; 440) (249 TO CYP 2001-01), 251 TO GAX. 243 TO (GAX) 2001-04. 335 RTND 2001-07. 7 SOLD. 334 RTND 2001-08. 150Y.
1 A320-200 (V2527-A1), 2013-07. 150Y.
6 A320-232 (V2527-A5) (4990, /12 ZS-SZZ; 5011, /112 ZS-SZY; 5637, ZS-SZA; 5680, ZS-SZB, 6189, ZS-SZF, 2014-07; 6200, SZ-SZG, 2014-08), EX-(F-WWDF), 15 CANCELED. (SIL) LSD 2012-02. 150Y.
0 A330-223 (232; PT-MVA; 238, PT-MVB), (TPR) WET-LSD 2003-12. RTND.
0 A330-243 (TRENT 772B-60) (401, G-WWBD; 404, G-MDBD), (BMA) 5 MTH WET-LSD 2002-12. RTND. 24C, 220Y.
2 +4 ORDERS A330-243 (TRENT 772B) (1191, /11 ZS-SXZ "CHARLOTTE MAXEKE" 2011-01 - - SEE ATTACHED "SAA-2011-02-1ST A330-200;" 1210, /11 ZS-SXY, 2011-03; 1223, /11 ZS-SXX; 1236, /11 ZS-SXW; 1249, /11 ZS-SXV; 1271, /11 ZS-SXU), (CSL) LSD, 36C, 186Y.
1 +4 ORDERS A330-300, LSD 2016-12. 46C, 203Y.
0 A340-212 (CFM56-5C3/F) (006, /93 ZS-SLF, 2004-06; 008, /93 ZS-SLA, 2003-02; 011, /93 ZS-SLB, 2003-06; 018, /93 ZS-SLC, 2003-07; 019, /93 ZS-SLD; 021, /93 ZS-SLE), EX-(DLH), (AFIS) LSD. ALL 6 PHASED OUT BY 2014-07. 24C, 226Y.
2 A340-313 (CFM56-5C4) (197, /97 ZS-SXH; 378, /01 ZS-SXG - - SEE PHOTO - - "SAA-A340-313E-2010-12"), EX-(IBE). (AFIS) LSD 2010-10. 38C, 215Y.
3 A340-313 (CFM56-5C4/P) (544, /04 ZS-SXA; 582, /04 ZS-SXB; 590, /04 ZS-SXC; 38C, 215Y.
3 A340-313 (CFM56-5C4/P) (643, /05 ZS-SXD "SIYANQOBA;" 646, /05 ZS-SXE; 651, /05 ZS-SXF), 646; 651; RF (JPL) 2007-07. 38C, 215Y.
6 A340-642 (TRENT 556-61) (410, /02 ZS-SNA; 417, /02 ZS-SNB; 426, /03 ZS-SNC*; 531, /03 ZS-SND; 547, /03 ZS-SNF; 667, /03 ZS-SNG), *STAR ALLIANCE (SAL) COLORS. 42C, 275Y.
1 A340-642 (TRENT 556-61) (534, /03 ZS-SNE), (ILF) LSD 2003-11. 42C, 275Y.
2 A340-642 (TRENT 556A2-61) (626, /05 ZS-SNH; 630, /05 ZS-SNI), (ILF) LSD 2005-05. 42C, 275Y.
7 ORDERS A380:
2 EMBRAER 120 RT.
3 DASH 8-Q402 (4122, ZS-NMO; 4344, ZS-YBU; 4370, ZS-YBY), (SAA) EXPRESS OPS. EX-(G-FLBF & G-FLBJ). 74Y.
Click below for photos:
SAA-1-SIZA MZIMELA - 2010-02
SAA-1-SIZA MZIMELA - 2012-09
MS DUDU MYENI, CHAIRWOMAN.
MUSA ZWANE, TEMPORARY ACTING CHIEF EXECUTIVE OFFICER (CEO) (2015-11).
Musa has been Head of the Maintenance Division.
NICO BEZHUIDENHOUT, (CEO) OF MANGO (MGO) (2014-11).
WOLF MEYER, CHIEF FINANCIAL OFFICER (CFO).
MICHAEL KLEYN, ACTING GROUP TREASURER (2016-07).
MS CYNTHIA STIMPEL, TREASURER, UNDER SUSPENSION.
Cynthia was suspended for "misconduct."
BARRY PARSONS, CHIEF STRATEGY OFFICER.
STEFAN POPRAWA, SOUTH AFRICAN AIRWAYS TECHNICAL (ACTING) (CEO).
MS THELMA MELK, COMPANY SECRETARY
Thelma previously worked at (SABC) and Transnet, and is tasked with strengthening accountability and governance issues at (SAA).
CHRIS SMYTH, GENERAL MANAGER OPERATIONS EX-(KEN) (2009-02).
MS NOMFANELO MAGWENTSHU, GENERAL MANAGER BUSINESS DEVELOPMENT.
With responsibilities for the (CEO)'s office, Aeropolitical Affairs & Alliances and Long Term Business Planning, she is overseeing (SAA)'s integration into the Star (SAL) Alliance and (SAA)'s Africa strategy.
MS LOUISA ZONDO, GENERAL COUNSEL
Responsible for (SAA)’s legal affairs.
THEUNIS POTGIETER, GENERAL MANAGER COMMERCIAL.
RINESH RAMKISSOON, EXECUTIVE VP (SAA) TECHNICAL (2003-11).
CAPTAIN JOHNNY WOODS, HEAD FLIGHT OPERATIONS
Responsible for Flight Operations, Flight Technical and Crew Planning.
PATRICK DLAMINI, GENERAL MANAGER (SAA) CARGO.
MS VERA KRIEL, HEAD CORPORATE STRATEGY & BUSINESS PLANNING.
ROBYN CHALMERS, HEAD GROUP CORPORATE AFFAIRS.
JUAN SWARTZ, HEAD BUSINESS IMPROVEMENT.
JASON KRAUSE, HEAD BUSINESS DEVELOPMENT.
TLELI MAKHETHA, EXECUTIVE VP CARGO.
NOMVULA NKABINDE, GENERAL MANAGER SALES & MARKETING.
BHABHALAZI BULUNGA, GENERAL MANAGER HUMAN RESOURCES (HR).
ANDILE MABIZELA, EXECUTIVE VP COMMERCIAL.
ANISHA ARCHARY, EXECUTIVE VP CUSTOMER SERVICES.
JOHAN VAN JAARSVELD, EXECUTIVE VP CUSTOMER SERVICES.
MARC CAVALIERE, EXECUTIVE VP NORTH AMERICA (IN FORT LAUDERDALE) EX-(SPR) (2006-05).
ANTON RICHMAN, VP FLIGHT OPERATIONS.
TERRY RAMABULANA, VP INFORMATION TECHNOLOGY (IT) (1998-10).
VICTOR NOSI, VP CORPORATE SERVICES.
ANISHA ARCHARY, VP GLOBAL PASSENGER STRATEGY SERVICES.
DAVID JAMES, VP GLOBAL SALES.
NOEDINE ISAACS, VP IN-FLIGHT SERVICES & VP HUMAN RESOURCES (HR).
PITSO KEKANA, VP PRODUCT DEVELOPMENT & MARKETING PROGRAMS.
MRS JACQUELINE O'SULLIVAN, HEAD CORPORATE COMMUNICATIONS (2006-01).
Jacqui, was the Communications Manager of Airports Company South Africa (ACSA) and now reports to Molebatsi Moagi, (SAA) General Manager for Marketing and Sales. She will be responsible for Internal and External Communications and well as Corporate Social Investment. Jacqui O’Sullivan began her career as a reporter with Independent Newspapers working for the Saturday Star, Sunday Independent, and The Star. She then joined Talk Radio 702, where she produced the John Robbie Show. Her next move was to SAfm where she edited the station’s website and produced various shows. From radio, Jacqui entered the aviation world, joining Airports Company South Africa as the Communications Manager at Johannesburg International Airport. Jacqui has a Bachelor of Arts degree from the University of Stellenbosch.
ISMAIL RANDEREE, SENIOR MANAGER (SAA) TECHNICAL OPERATIONS (2002-03),
DR THEUNS KRUGER, EXECUTIVE MANAGER CAPITAL & ENGINEERING PROJECT PLANNING.
MIKE KENNY, EXECUTIVE MANAGER MAJOR MAINTENANCE (2001-10).
JOHAN BLIGNAUT, EXECUTIVE MANAGER ENGINEERING & MAINTENANCE PROGRAM DEVELOPMENT (2001-10).
HELMUT STROBELE, VP TECHNICAL OPERATIONS CENTER (2000-06).
C BORNMAN, EXECUTIVE MANAGER MINOR MAINTENANCE (2001-10).
JOE LUCHTENSTEIN, EXECUTIVE MANAGER QUALITY ASSURANCE (QA) (2001-10).
JEVAN SMITH, SENIOR MANAGER AVIONICS & MECHANICAL WORKSHOPS.
DICK DUPLESSIS, SENIOR MANAGER SUPPORT SERVICES, INFRASTRUCTURE & FINANCE.
MALCOLM WHYTE, SENIOR MANAGER MANAGEMENT SERVICES & TRAINING.
KEVIN KRUGER, SENIOR MANAGER MAJOR MAINTENANCE (1999-07).
MS E DUPREEZ, SENIOR MANAGER MAINTENANCE PROGRAM PLANNING (1999-07).
JORGE DUARTE, SENIOR MANAGER CUSTOMER DEVELOPMENT & SUPPORT (1999-07).
DRIES WEHMEYER, MANAGER FLIGHT SAFETY, (email@example.com).
JOHAN LOURENS, MANAGER MAINTENANCE PROGRAM PLANNING.
RENE MARAIS, MANAGER MECHANICAL SYSTEMS ENGINEERING.
TREVOR DUGGAN, MANAGER BOEING MAINTENANCE.
N DUVENHAGE, MANAGER POWER PLANT PRODUCTION.
G ROSS, MANAGER POWERPLANT ENGINEERING (1999-09).
S STRACHAN, MANAGER STRUCTURES & POWERPLANT ENGINEERING (2000-06).
R MARAIS, MANAGER MECHANICAL SYSTEMS & AVIONICS ENGINEERING (2000-06).
B RUSCOE, MANAGER TECHNICAL INFORMATION (1999-07).
SANDY BAYNE, CHIEF STANDARDS PILOT FLIGHT OPERATIONS.
DAVE VAN ZUTPHEN, CHIEF AERONAUTICAL INSPECTOR.
FORTUNE NTLHORO, CHIEF PROCUREMENT OFFICER (2007-10).
A VAN HEERDEN, (ETOPS) MAINTENANCE COORDINATION.