South African Airways assures customers and suppliers of business continuity following government clarification about its future
12 November 2018
South African Airways would like to assure all its stakeholders, customers and suppliers of business continuity after government clarified its position that the airline will not be shut down or sold.
SAA’s strategy implementation is on track and there are ‘green shoots’ that indicate positive results on initiatives already implemented, particularly in the airline’s route network. This follows the implementation of capacity adjustment in the domestic market and network optimization in the regional and international markets.
The Government as a shareholder has not communicated any change in strategy and approach on the future of SAA. The airline’s position is that it will take three years to bring the company to a break-even position. However, the shareholder decided to provide part of required financial assistance to the airline.
On Monday, 5 November 2018, the shareholder representative, Minister of Public Enterprises, Pravin Gordhan, clarified government’s position – a heightened expectation for SAA to execute on its strategy to restore the airline financially and operationally.
SAA also welcomes the assurance by President Cyril Ramaphosa in parliament on Tuesday 6 November, that the airline will remain in business, noting that government is considering various options, which include the possibility of an equity partner.