South African Airways and SA Express will submit their African Aviation Strategy to Cabinet in June, focusing on regional integration and opportunities on the continent, which must become the primary market and route for both state-owned airlines, Public Enterprises Minister, Malusi Gigaba, told Parliament yesterday.
Delivering his budget speech, he said he believed it was critical for the State to sustain a national flag carrier to ensure security of air transport to South Africa, given the country’s location, the volatility of the airline industry and the “immeasurable” damage unreliable air travel would do to business and tourism to South Africa.
It was thus vital for the State to support SAA to procure a modern and fuel-efficient fleet if the airline was to remain competitive, given a depressed global economy and high fuel prices. “The substance of such support is the subject of an on-going discussion between the department, National Treasury and SAA,” he said.
Reuters reports that the Minister told Parliament that SAA would take delivery of 20 Airbus A320 aircraft valued at R10bn starting in the next quarter. “The aircraft form part of a broader fleet replacement plan that aims to address the fuel inefficiency of SAA's current long-haul fleet,” the Minister said. “Over the next year, we will focus on ensuring that SAA's cash position is stabilised, the cost compression programme is accelerated, the international network is reviewed and the long-term fleet plan is finalized.”
The Minister said the department was working with the SAX board to address “internal control challenges that the company is currently facing” to restore public confidence in the company.
Notwithstanding, SAX recently launched three new domestic routes and has established a base at King Shaka International Airport from which the airline will play a “catalytic role in continental trade and economic integration, supporting the Dube Trade Port Industrial Development Zone (IDZ) as well,” he said.
