SAA broke even during the 2023-24 financial year and is seeking potential minority investors, access to capital markets and loan financing for a rapid network expansion, Interim Chairman Derek Hanekom has told eNCA.
Following the collapse of a sale agreement for 51% of SAA between the Department of Public Enterprises and the Takatso Consortium, Hanekom says the airline must find additional investment to continue its three- and five-year business plans.
“One of our immediate challenges is we had to revise our business plans... Within our three- and five-year plans, we had incorporated the R3 billion promised to us (by the Takatso Consortium agreement),” said Hanekom.
“If we are able to get this capital from whatever source, then we might be able to expand more rapidly.”
SAA had planned to expand its intercontinental network following the launch of the São Paulo and Perth flights, with flights to London, Frankfurt and North America.
Hanekom said the intercontinental network expansion plan would now be delayed for the next couple of years until the carrier found sources of capital.
Despite these challenges, Hanekom said that SAA’s bookings for its Perth flights were promising and that its São Paulo flights were profitable.
“For the financial year 2022-23, ending in March 2023, we actually showed a modest profit. That is still with the Auditor General, and they should be completing their work by the end of May,” he said.
“For the year that we have just finished, the 2023-24 financial year, its more or less on a break-even basis. It was a difficult year.”
Hanekom explained that the past financial year had presented many challenges, including technical problems and an aircraft shortage.
“However, today we have 13 aircraft, and the plan for this financial year is to expand it to 21.”
