SAA board told to shape up, deliver

The ministry of public enterprises has put the SAA board of directors and management on notice to identify and implement immediate interventions at the cash-strapped airline.

The ministry said bad decisions made by previous boards and management included allowing corruption to incapacitate the airline.

The priority was to stabilise SAA financially and through a rigorous process of cost reduction and commercial re-orientation‚ and turn it into an airline that was financially and operationally sustainable‚ the ministry’s spokesperson Adrian Lackay said in a statement.

The ministry said the recent appropriation of R5bn in the medium-term budget policy statement was a further expression of this intent.

It said the cash injection provided a degree of financial stability while the airline’s board and management proceeded to restore the airline financially and operationally.

“It is imperative that the executive management apply its mind to the task at hand‚ including addressing the airline’s cost base‚ stopping fraudulent contracts‚ disciplining and instituting civil and criminal actions against persons inside and outside the business who are implicated in corruption‚ and preparing SAA for a strategic equity partner,” it said. –

FILE Picture: HARD UP: Profitability remains tough as significant cost reductions remain elusive.