By early next year SAA, SA Express and Mango are to be integrated into a new airline group that in turn will form part of a new holding company reporting to the Department of Public Enterprises (DPE). SAA will also review its global network and eliminate loss-making routes.This restructuring forms part of SAA’s new Longterm Turnaround Strategy (LTTS) presented to the Parliamentary Portfolio Committee on Public Enterprises in Cape Town today.
The long-awaited presentation was made jointly by Public Enterprises Minister, Malusi Gigaba, SAA chairperson, Dudu Myeni, and SAA ceo, Monwabisi Kalawe.Of high priority, said Monwabisi, was the recapitalisation of SAA, a review of its global network to eliminate loss-making routes and refleeting to mitigate fuel costs. He confirmed that all of SAA's international routes were currently loss-making and were under review in co-operation with the DPE.
"Management has clearly identified loss-making routes. We have asked DPE to identify those that are crucial to growth of the economy. Once these have been identified, we'll pull the plug on those not deemed crucial and that are making losses," he said.
Apart from the airlines group, the new holding company will include three other sub groups: a Maintenance and Repair Organisation (MRO) sub group that will rebuild SAA's aircraft maintenance capability, a Logistics sub group incorporating Air Chefs and Cargo, and a Loyalty sub group incorporating Voyager.
In order to ensure implementation of the LTTS, a turnaround office will be created that, along with the Group executive committee, will report to the ceo, who reports to the board, which in turn reports to the DPE and National Treasury via quarterly reports, and to the Parliamentary Portfolio Committee and other stakeholders, as required. The implementation plan is to be supported by a scorecard and management plan that encourages accountability.
