Nene to pick SAA chief out of list

Board picks best candidates

THE BOARD of SAA has sent a shortlist of candidates for the chief executive position to Finance Minister Nhlanhla Nene, who must now apply his mind to choose the best candidate to spearhead efforts to stabilise the national carrier.

Business Report has reliably learnt that the names of the candidates, which are known to Business Report, were sent to Nene last week. According to sources familiar with the matter, the shortlist does not include current acting chief executive Musa Zwane, who was appointed earlier this week.

“SAA needs somebody who can ensure that the airline is stabilised and the turnaround strategy is taken forward,” a source said.

The airline has been without a permanent chief executive since the departure of Monwabisi Kalawe in June amid

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allegations of misconduct. The sources said SAA wished to make the appointment “as soon as possible”, but the process would be dictated by Parliament as well as the cabinet.

The top two candidates were males, the sources added. Treasury spokeswoman Phumza Macanda could not immediately be reached for comment.

Executive shuffle

SAA’s plan to beef its executive ranks comes amid the departure of chief financial officer Wolf Meyer on Monday, the suspension of chief commercial officer Sylvain Bosc and the sudden demotion of human resources head Thuli Mpshe, who had been acting as chief executive since August.

Sources have said SAA could appoint an outside accounting firm to handle financial oversight functions after Meyer's resignation, which followed an “irretrievable breakdown” in trust between himself and the board over his alleged recording of a confidential meeting and the failure to give the board accurate financial information.

Meyer is also alleged to have failed to own up to financial figures that led SAA to rack up huge losses after starting the Abu Dhabi route. Sources have put the route’s losses at R270 million since the route was started nine months ago.

Business Report has also reliably learnt that Bosc had told the board that the route would have a high number of ticket sales and a passenger load factor of nearly 80 percent. But the route, dominated by the socalled M3 of Etihad, Qatar Airways and Emirates, has load factors of about 40 percent because of stiff competition. A passenger load factor measures capacity utilisation of airlines, taking into consideration how seats are filled and the fares.

SAA needs somebody who can ensure it is stabilised and the turnaround strategy taken forward.

According to sources, Bosc has been suspended pending a disciplinary hearing.

Business Report also understands that SAA narrowly averted a crippling strike by its cabin crew last week after the staff threatened to down tools over working conditions and allegations of harassment, victimisation and discrimination.

A source said the cabin crew also complained about their accommodation when flying long-haul international routes.

“When they arrive at a destination they find that there is separate transport for the cabin crew and the pilots. The pilots are also entitled to five-star accommodation, while the cabin crew are not,” a source told Business Report.

The source added that SAA board chairwoman Dudu Myeni had summoned Mpshe to a meeting in Durban last week to explain the complaints by the cabin staff. Myeni then met with the staff to defuse the situation, the source said.

No confidence

On Monday, Myeni came under fire from SAA’s Pilots Association, when its members passed a vote of no confidence on her leadership and called for the board to be fired.

“It is hoped that this vote will serve as a clarion call to Nene and the government that the future of SAA requires immediate and urgent attention,” association chairman John Harty said. But the SA Transport and Allied Workers Union dismissed the vote as a “ploy by white pilots to perpetuate white