Page 58 - Aviation News (February 2020)

2006 and the 747-400 was replaced by the The first South African Airways Boeing 747 Austrian Airlines) increased capacity on the
A340-600. Because SAA could not obtain arrived in October 1971. Named Kaapstad/ routes from Frankfurt, Munich, Vienna and
rights to fly passengers from Ghana to the Cape Town, 747-300, ZS-SAU, served SAA Zürich to Cape Town during the Northern
USA, Dakar in Senegal replaced Accra as an from 1983 to 2004. AirTeamImages.com/Martin hemisphere winter. By June 2015 SAA
intermediate stop. In 2007, SAA retired the Boschhuizen informed its shareholders it was incurring
last remaining 747-400. In the same year it Although the restructuring programme losses on the two remaining Johannesburg-
took on two 737-300 Freighters. resulted in important savings, these London Heathrow flights, amounting to
were not enough to ensure a return to $31m per year.
RESTRUCTURING profitability. A rapid turnover of chief Flights to Buenos Aires ended in 2013
The government’s plans called for the executives prevented a consistent policy and in 2015 SAA announced plans to end its
separation of South African Airways and and undermined confidence in the airline non-stop services to Beijing and Mumbai.
its parent company Transnet, which took and its management. In 2010, Sizakele In 2015, the acting CEO stated that Hong
place on March 31, 2006. On October Petunia Mzimela became the first female Kong, Munich, Frankfurt and Perth were the
30 that year Mango Airlines started CEO of SAA. Previously, Mzimela had been only profitable long-haul routes; all others
operations as a fully owned subsidiary of CEO of South African Express. She was were loss-making. That year, the airline
South African Airways. followed by Vuyisile Kona (2012), Nico received a $52m additional loan guarantee
In May 2007, SAA launched an 18-month Bezuidenhout (2013), and Monwabisi to keep it in the air.
comprehensive restructuring programme Kalawe (2013-2015). For the fiscal year
that aimed to make the airline profitable. ending March 31, 2012 SAA published DIFFICULTIES
According to CEO Ngqula, this came accumulated losses exceeding $300m. By 2015 it had become clear that SAA was in
largely after “uncompetitive ownership and Revenues were up 12% on a local currency serious trouble. There are many reasons for
aircraft lease costs, excessive head count basis but they were slightly down on a dollar this situation. The number of staff members
and fuel price volatility”. The programme calculation due to the depreciation of the far exceeded what was required to run the
involved the spin-off of businesses into South African rand. airline and an Ernst & Young report to the
seven subsidiaries, thereby allowing SAA In 2012, SAA ended its 20-year-old government into 48 of the largest contracts
to concentrate on its core business of Cape Town-London route, due to declining awarded by SAA showed that 28 of them,
passenger and cargo transportation, passenger numbers and increasing airport or 60%, were improperly negotiated,
grounding the entire 747-400 fleet, taxes. The airline also sold one of its three poorly contracted or weakly managed. The
rationalising international routes (Paris was valuable daily landing slots at London’s utilisation of the fleet was inefficient given
dropped), and the axing of 30% of the airline Heathrow airport. The decreasing presence that for most of their long-haul routes the
managers among other reductions. This of SAA in Britain resulted in British Airways aircraft sat on the ground for an entire day
was expected to save the airline R2.7bn. taking over not only international routes, before the return flight to Johannesburg.
By June 2009, R2.5bn had been saved. but its partnership with South African carrier SAA’s initial turnaround plan identified
Two retired Boeing 747-400s had been Comair has since seen them corner the widebody fleet renewal as an essential
reactivated in 2008 for flights to Lagos and market for domestic routes too. Lufthansa measure for achieving profitability. SAA
by 2010 were serving Luanda as well. and its subsidiaries (Condor, Edelweiss and has been eager for several years to

Seen at Hong Kong/Kai Tak, 747SP ZS-SPD served SAA from September 1976 to March 1985. Several examples of the six-strong SP fleet were leased
to other operators for long periods. Bob O’Brien Collection

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