live
Share

SAA CEO remains suspended - As it happened

accreditation
Last Updated
Live News Feed
Go to start

30 Jan 2015

SAA briefing over...

30 Jan 2015

Confirmation on Beijing route:

1 April SAA stops flying; 1 May Air China starts

30 Jan 2015

SAA board chairperson:

SAA CEO Monwabisi Kalawe remains suspended – SAA chair says.

Read more

30 Jan 2015

Fin24 askes SAA acting CEO about the storm regarding his (lack of) qualifications.

He responds:

“I find it quite frustrating”   DA needs to back up their statement, he says  

He says his CV is available from Talent Africa and from his PR person.  

“What I have claimed to have is all the tertiary qualifications  

“I’ve got a track record of 7 years profitability,” he said.  

Recently SAA reacted very strongly regarding the issue about Bezuidenhout’s qualifications.

Read more

30 Jan 2015

SAA CEO speaks:  

BEIJING CANCELLATION:    

1st week of April, Air China will open in month of May.

30 Jan 2015

Nene responds to Fin24 on BEIJING CANCELLATION:  

On the date, all we know as government we have approved the cancellation of the Beijing route.

No confirmed date.  

CEO will clarify.

30 Jan 2015

In December SAA added more flights to key African destinations.
Read more

30 Jan 2015

Fin24 asks WHEN Beijing route will be cancelled?

30 Jan 2015

SAA CEO:

“Some of our Asian routes are problematic”

But SAA has a strategic Abu Dhabi route.

30 Jan 2015

SAA CEO:

India also a loss making route

Jet Airways was last airline here

But with some routes demand is not efficient

SAA has service R5.5bn in interest charges on its debt from local and international organisations that it has served on its own.

30 Jan 2015

SAA CEO on routes...

Beijing route: We have gone to engage with Air China Within a month of changing operations, it will then take over.

Air China could have a direct route from SA

Unclear when this could happen.

30 Jan 2015

LTTS (Long term turnaround strategy)  

Board chairperson Dudu Myeni...

“We are not revising the LTTS”   “It’s a living document; it’s not something you say is cast in stone for the next 20 years”

30 Jan 2015

Minister Nene:

“Guarantees are not bail-outs”

“We put in the guarantee but we move in with the state-owned company”

...You cannot only achieve the developmental side without being sustainable.

30 Jan 2015

SAA debuted its non-stop route to Beijing, China, in January 2012.


Read more

30 Jan 2015

Minister Nene:

Government guarantees to SAA top R14.4bn; R8.3bn already utilised

 

30 Jan 2015

In December 2014 SAA and Etihad expanded its landmark partnership.
Read more

30 Jan 2015

SAA lost close to a R1bn in three years on the Beijing route, says SAA CEO.  

SAA closing the route...application applied for cancellation of route to government.

30 Jan 2015

Minister Nene answers questions:

He’s talking about the 90-day plan and long-term plan.  

“We need a credible plan on the table to support any state-owned company”  

“It is something that we are going to monitor quite closely”  

“It’s not recapitalisation,” he says.  

We do not want to build the sustainability of state-owned company at the expense of other government programmes, he says.

“Indeed we have approved the cancellation of the China route” - SAA closing loss-making routes... this is the Beijing route.

30 Jan 2015

In December 2014 SAA assembled a new “war cabinet” to solve the crisis it faces.
Read more

30 Jan 2015

Question asked about 90 day strategy and whether there will be an announcement about the routes to China.  

Question also asked about suspended CEO and sale of non-strategic assets.

30 Jan 2015

In October 2014 the National Treasury made it clear that it will not in future be an easy task to provide bailouts for failing state-owned organisations and there is likely to be an announcement on the sale of “non-core” assets in time for the February 2015 budget.
Read more

30 Jan 2015

“Importantly, ladies and gentlemen SAA must be self-sustaining,” says the minister.

30 Jan 2015

Minister Nene:

Funding for state-owned companies will also take place once the non-strategic assets the minister talks about will be disposed of.

National Treasury together with departments will monitor all guarantees issued to all state-owned entities

Government guarantees only provided on a basis of a sound business plan, the minister says.

Recapitalisation of state-owned companies will only happen in a way that does not compromise the state’s balance sheets

SAA’s continued losses have prompted govt to adopt unusual business approach - Govt intervened last year in SAA.

SAA subsequently crafted a 90 day turnaround plan. Among cost cutting measures include route closures.

“It will take time for the benefits to show on SAA’s bottom line,” Minister Nene says.

SAA must produce annual savings of R1.3bn, says Nene.

30 Jan 2015

A few weeks ago Finance Minister Nhlanhla Nene said Eskom must sort out its problems because they are hurting the economy.
Read more

30 Jan 2015

Nene:

State-owned entities are important.  

They need to be financially sound and not a drain.  

Nene now talking about deputy President Ramaphosa overseeing public companies that are in trouble.  

In some instances, government will have to release non-strategic assets.

30 Jan 2015

“I urge the board from SAA here today to help us turn the airline around”  

...Now the minister takes to the stage - Minister Nene.

30 Jan 2015

SAA must beware of losing market share on its regional routes in Africa, according to aviation specialist Nawal Taneja.
Read more

30 Jan 2015

Board Chairperson Dudu Myeni:

SAA has not achieved long term sustainability yet.  

“When I say slow pace or failure, it’s something that the board is really asking itself,” she says.  

“Implementation is the type of deficit we often face in South Africa”

“This 90-day plan...have concrete deliverables”

“I’m happy to report today that substantial progress has already been achieved".

30 Jan 2015

Recent drastic declines in the international oil price and the resultant sharp cuts in the local petrol price could herald a sharp turnaround in South Africa’s more immediate fortunes, according to Old Mutual Investment Group.
Read more

30 Jan 2015

Board Chairperson Dudu Myeni:

“As we saw from the presentation by our acting CEO...SAA did achieve 70% of its developmental performance indicators for the year”  

SAA Boosted job creation, tourism, she says.  

Employees in the key skill areas benefited close to R200m in training.  

“The SAA group accounted for 43% of all passengers air within and out of South Africa”  

“There’s no doubt that SAA plays a key role in the development agenda of our country”  

However, regarding the commercial aspect, SAA is less successful, she says.  

30 Jan 2015

The rand gained against the dollar on Friday January 30 following a decision by the South African Reserve Bank (Sarb) to leave interest rates unchanged, indicating that any possible cuts would depend on further falls in consumer inflation.
Read more

30 Jan 2015

SAA CEO:

Costs are a problem.

“With lower oil prices, average ticket prices will be reduced”

Number of aircraft globally 3.1%; number of seats increase forecast globally over 5%

Africa is also becoming more competitive.

“More opportunity for SAA but this also means more competition” – more competition in terms of connecting to more places.

30 Jan 2015

SAA CEO back on stage...

“Effectively we keep on chasing our tail,” says SAA CEO regarding the air carrier’s costs.

SAA also has a disproportionate exposure to fuel: expend 36% of total expenditure on fuel...

This is because SA is geographically more removed, older aircraft type.

30 Jan 2015

Want to know what it feels like to fly SAA? Check here:

30 Jan 2015

According to Bezuidenhout SAA had R450m in cost savings in the 2013/14 financial year. @SAgovnews @flysaa

30 Jan 2015

Improved from negative position of R1.1bn to R79m overdraft (net cash and cash equivalents)  

Fuel expenses increased by R1.5bn

30 Jan 2015

R1.4bn in impairments...had to replace wide body fleet.

R800m we had to impair on these aircrafts

2002 contract increased to 20 aircraft.

Only started taking deliveries in 2013.

Four aircraft delivered thus far.

30 Jan 2015

Fin24's Gareth van Zyl is tweeting from the SAA press briefing.
Follow him on Twitter

30 Jan 2015

Hedging/Translations

SAA made a hedging profit of R691m

“We don’t immediately get the benefit of the reduced fuel price”

“We have hedged approximately 38% of our hedging exposure over the next 12-18 months”

“Due the increased exchange rate we don’t have the same benefit as other airlines”

30 Jan 2015

In December 2014 Radebe said cabinet was concerned about the performance “of some of the state owned companies in particular Eskom, the South African Airways, and the South African Post Office”.
Read more

30 Jan 2015

Last year Minister in the Presidency Jeff Radebe announced that the Treasury would assume control of SAA's finances.
Read more

30 Jan 2015

Aircraft maintenance costs increased to R376mn (up by 16%)  

Aircraft lease costs increased to R451m (up by 22%)  

Navigation landing and parking increased by 18% to R319m  

30 Jan 2015

SAA CFO Wolf Meyer:

Currency weakness had a huge impact on operating costs.  

Employment expenses went up  by 8% to R409m  

Management got 5.8% increase  

Pilots increase of 6.2%  

General staff increase 6.5%  

No bonuses paid to SAA staff

30 Jan 2015

SAA had incurred over R8bn hedging losses between 2004 and 2010.
Read more
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.93
-0.2%
Rand - Pound
23.90
-0.0%
Rand - Euro
20.44
+0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.1%
Platinum
906.59
+1.1%
Palladium
1,012.66
+1.1%
Gold
2,221.55
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders