South African Airways continues to implement long-term turnaround strategy

Published on : Monday, July 20, 2015

SAA logoWith the flag carrier due to introduce a new route next month, state-owned South African Airways (SAA) says it is continuing to drive the implementation of its long-term turnaround strategy.



“By the beginning of August, SAA would have introduced two new commercially viable routes while the positive impact of improving opportunities and efficiencies in its network should realise a positive impact of 2.5 billion Rand (about 202 million US dollars) in annualised earnings,” said the airline on Friday.
In March, SAA introduced its first flight to Abu Dhabi and it will begin flights from Accra to Washington on Aug 2.


The airline said while commercially it had adjusted capacity against declining demand, 81 per cent aggregate load factors marked the first quarter of the 2015/16 fiscal year.


Meanwhile, the airline highlighted that it remained focused on the turnaround strategy. “Across both our commercial and operational areas there is a clear focus on delivery against the objectives of the plan,” said acting chief executive officer Nico Bezuidenhout.


“Operationally, SAA has been ranked amongst the best airlines in the world that operate in excess of 10,000 flights monthly for its on-time performance since March this year. In June, the airline was ranked fourth globally.”


SAA has already increased frequencies to key African destinations such as Mozambique, the Democratic Republic of Congo and Mauritius, among others.


“The positive commercial impact of a demand-side response not only indicates that there are positive gains to be made through network efficiencies but, that sound commercial decision making will benefit the business in the medium to long term,” explained Bezuidenhout.


Africa remains a key focus area for SAA as aviation has the potential to make an important contribution to the further economic development and growth on the continent. “It connects countries, markets and facilitates trade and connects Africa to global supply chain links,” he added.

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