Global Aviator May 2018 / Vol. 10 / No. 5 3
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Looking
forward
in 2018
New Brooms sweep clean - or do they?SAA's newish CEO, Vuyani Jarana has been in the job
for five months and during that time he has made changes
to the airline in order to 'slash costs'. Four aircraft have been
moved over to Mango, several unprofitable routes have been
cancelled or shifted over to Mango but one of the biggest
drains on SAA's finances is still intact and costing millions.
SAA's executive line-up is top heavy. Surely if the airline is to
carry on operating and at least no longer begging for government
handouts, even if it is not exactly profitable, rationalisation of
employees should start with those who earn the most but who, in
many cases, do not exactly deserve that moola. Instead it seems that
those very people who are the most important in the airline, are
the ones who may be given marching orders. I speak of course, of the
pilots as an internal memo has apparently gone out asking if any pilots
would be interested in contracts with outside airlines!
Google what the wondrous world of the internet has to say
about the viability of SAA as an eventual profitable enterprise. Sell
the airline seems to be a common remark. Certainly something
drastic needs to be done. It is no use to continuously mention
turnaround strategies but then do the minimum. Cutting routes and
getting rid of planes is not enough. SAA cannot do anything about
high fuel costs but a very serious look can be taken at employee
numbers, especially at the higher salary brackets. May I suggest
some salary freezes and why do certain executives need bodyguards
at a figure of R30 million if reports are to be believed? A month!!
SAA Technical bought in R703 million in external revenue
during the 2016/17 financial year. Now it seems that a large chunk
of that may disappear if Comair does find an alternative source
for technical support. At a recent round table meeting CEO Erik
Venter spoke about the division's problems in procuring the right
spares in time and planning the work needed on the aircraft.
SAAT has always had a reputation for excellent work and quick
turnaround so what has changed over the last while? Increased pressure
for the implementation of BBBEE for one, and dare one ask: is the
quality, training and experience of the technicians up to scratch?
And while we are talking about SOE's and their drain on the
countries finances, At least something is being done at Denel as Minister
of Public Enterprises, Pravin Gordhan, brings in a new Interim Board
of Directors for Denel SOC. He slammed the insistence of the previous
Board to go ahead with the Denel Asia débâcle. The new board is
headed by former ACSA CEO, Ms Monhla Hlala as Chairperson.
Let's hope Denel can get back on track and not become yet another
drain on our finances.