TURNAROUND STRATEGY
CEO dealing with SAA challenges, but needs more funding
Not much improvement in the profits of South African Airways (SAA) is expected for the 2017-18 financial year but recently appointed CEO Vuyani Jarana, who took up his post in November, has brought a new drive and energy to the implementation of the national airline’s turnaround strategy. The strategy will focus on a reorganisation of the route network, improved efficiencies and cost cutting. In 2016-17 SAA had a net loss of R5.6bn. SAA board member Martin Kingston was full of praise for Jarana, saying on Monday that he had clearly identified the opportunities and challenges that faced the airline and was knuckling down with his team to deal with them. The long-term turnaround strategy is expected to yield fruit in three years’ time, but only on the condition that SAA gets more funding from the state to beef up its weak and overindebted balance sheet.
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