SAA “business as usual”

SOUTH African Airways has reassured the Australian travel trade that the airline is on a solid path forward, with local boss Tim Clyde-Smith telling Travel Daily that it’s business as usual despite reports about SAA’s financial position ( TD Mon).

Last week, BBC reported South African Airways had “run out of money and is teetering on the edge of bankruptcy”, citing paperwork supplied to the country’s parliament.

In a memo to concerned travel partners yesterday, Clyde-Smith said “things are changing”, with the appointment last Fri of a new permanent ceo, Vuyani Jarana, and a new corporate plan also presented to the South African government last week.

“While the airline’s financial position requires improvement, we are working closely with the Government of South Africa and particularly Treasury (our shareholder) to address the issues facing the airline,” he said.

A five-year corporate strategy presented by turnaround specialists Seabury Consulting will focus on “stabilising, defending and building the airline”.

Jarana is an exec of Vodacom Business Africa, previously a loss- making telecommunications firm he has turned into a profitable and growing company, according to South Africa’s Finance Minister Malusi Gigaba.

Clyde-Smith said the Australia- South Africa route is performing well, with strong forward bookings in both directions.

Local govt airline data shows SAA loads in Apr were around 90%.

“There are no foreseeable changes to the operation... we have seen strong interest by recreational visitors in particular to Africa as a holiday destination.

“And the strong Australia dollar against the rand is certainly of appeal to travellers,” he said.

“I’m confident that at last we are on a solid path forward”.