The biggest challenge facing the SAA in attempts to rescue the airline from total ruin is how to get rid of the chairperson of the Board, Ms. Dudu Myeni, Dr. Pieter Groenewald, the FF Plus’ chairperson on Public Enterprises, says.
Dr. Groenewald said during a debate on the problems at the SAA in Parliament today that the aviation industry is a highly specialized industry. Expert personnel is most important in succeeding to survive in this industry. In this regard, the airline is failing dismally. The full speech of Dr. Groenewald follows below:
“Since 2005 there have been 10 turn-around strategies at the SAA. The Minister of Finance has now set eleven pre-conditions to the R5 billion state guarantees given to the SAA. The pre-conditions are in essence yet another turn-around strategy. This means that there have now been eleven turn-around strategies at the SAA in the past eleven years.
“Why is it not working? It is because, since 2005 there have been eight chief executive officers at the SAA. In the same period, the company had six financial managers. No company in a highly competitive environment can survive in this manner.
“In 2012, the operating loss of the SAA amounted to R1,3 billion. In 2014 it shot up to R4,7 billion. We are now hearing that the current loss could amount to R4 billion. Since 1999, the government has through taxpayers given the SAA R30 billion to survive.
“Any turnaround strategy will, however, have to start with the basics. There where contact is made with passengers for the first time.
“From the moment that one arrives at the check-in counter at SAA, one is given the impression by the personnel of the SAA that they are actually doing you a favour to serve you. And when there is a problem, it is your problem to solve. The turn-around strategy will have to start here, with the basics,” Dr. Groenewald said.
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