After returning to the skies following 18 months of non-operation and restructuring, South African Airways (SAA) said that it has seen steady, sustainable growth and will launch two new routes, Lubumbashi in the DRC and Dar es Salaam in Tanzania, from its hub in Johannesburg in November.
The national flag carrier entered business rescue in December 2019 and returned to the skies on September 23, 2021, with six aircraft’s and routes.
According to the national carrier, it has more than doubled its route network and tripled its fleet size three years later.
Celebrating 3 years since the restart, Interim CEO, Professor John Lamola said they are proud that between August 2022 and August 2024, they have grown the airline to 16 aircraft flying 15 routes, with a 400% growth in passenger revenues during that period.
“To date, we have reopened 11 outstations, including Mauritius, Perth in Australia, and São Paulo in Brazil. Post-Covid, our employment offering has expanded from 500 to around 1 200 staff, including 140 pilots,” said Professor Lamola.
The interim CEO highlighted that the airline is also currently executing a business plan that allows it to thrive from revenues generated from its operations, however, the question of whether there will be another strategic equity partnership is tied to SAA’s future growth plans and remains the prerogative of the shareholder.
“As with any airline, SAA’s growth and defence of market share will require continuous capital investment. Therefore, it is part of our job to investigate financing options to fund further expansion and the elevation of our customer service.
“Over the last three years, SAA has managed to cultivate a positive reputation with both international and South African financial institutions, hence the success in rebuilding our aircraft fleet.
“We are building on this favourable creditworthiness to strengthen the company’s balance sheet,” said Professor Lamola.
He added that supported by the Board, they have identified a range of assets that can be leveraged to unlock funding options.
“SAA has a portfolio of real estate that was recently valued at R5.5-billion. We also have a surplus of aircraft stock that we are converting into cash,” said Professor Lamola.
Though the airline reported steady growth, it has noted that the global supply constraints of aircraft resulting from the Covid pandemic and the production problems at aircraft manufacturers continue to negatively affect SAA’s financial performance.
“The delivery of three aircraft which were expected during the last calendar year is still delayed. As a result, SAA will again innovatively utilise aircraft wet-leased from Sun Express (Lufthansa and Turkish Airlines-owned airline) during the coming December peak season,” said SAA.
As a driver of economic growth, Professor Lamola said SAA’s growth strategy aims to ensure that the airline attains profitability whilst funding itself from its operations and pursuing award-winning service to its customers.
He said that the airline is now positioned to embrace its national developmental mandate of stimulating tourism, trade, and the driving of transformation in the aviation sector, without compromising its commercial viability.
Last month, President Cyril Ramaphosa assigned shareholder responsibility for SAA to the national Department of Transport and Minister Barbara Creecy.
Professor Lamola said the airline’s leadership has already met with the minister to provide a full debrief on the state of the airline, and its plans for the medium and long term.
“SAA is excited to be a member of the family of state-owned transport infrastructure entities. Our focus is being sharpened to being facilitators of world-class passenger air transportation into and out of South Africa,” said Lamola.