SAA gets new Airbus

DELIVERY: FIRST A350 BEING COMMITTED TO THE JOBURG-NEW YORK ROUTE

Aircraft is the latest twin-engine long-haul jet and promises savings of 20% on fuel bill.

Even as Finance Minister Tito Mboweni was revealing that South African Airways (SAA) was talking to potential equity partners about buying a stake in the loss-making airline, the carrier was taking delivery of a new, state-of-the art Airbus A350 passenger jet.

The plane arrived at OR Tambo International Airport yesterday aft ernoon aft er a ferry fl ight from Singapore. It had been there to be repainted into SAA livery from that of its original operator, Hainan, a Chinese airline. The plane, registered locally as ZS-SDC is being leased from Hainan and SAA will also lease two more A350s, probably from Air Mauritius.

The first A350 is being committed to the Johannesburg-New York route where it will replace the Airbus A340-600, which has been in service for more than 15 years. The A350 is the latest Airbus twin-engine long-haul jet and promises savings of at least 20% on SAA’s fuel bill on the Johannesburg-New York route.

Earlier this year, SAA chief executive officer Zukisa Ramasia said the introduction of the aircraft “is an important step-change as we continue to make progress to transform our business and return the airline to financial sustainability in the shortest time possible”. The A350 would offer both passengers and crew an improved environment, Ramasia promised. The A350 has been configured with 246 Economy Class seats, some of which are of a “premium” designation because they offer extra legroom to provide a more comfortable experience, especially on longer fl ights. The Business Class cabin has lie flat beds. During his medium- term budget speech in parliament on Wednesday, Mboweni said SAA was “unlikely ever to generate sufficient cash flow to sustain operations in its current configuration”.

He went on: “Which then begs the question: How long are we going to be on this fl ight path? Forever? I think not. Operational and governance interventions are required urgently!”

He said he was “pleased to learn that there are conversations involving SAA and potential equity partners, which would liberate the fiscus from this SAA sword of Damocles”.

Leasing aircraft – even by major world airlines – has become a more prominent aircraft financing option, especially over the past decade. It enables cash-strapped organisations like SAA to maintain a good cash flow situation without having to increase debt to buy and own its fleet outright.

SAA’s current passenger fleet is dominated by Airbus aircraft, while its subsidiary Mango operates Boeing 737s passed on from SAA. –