SAA mum on turnaround strategy details

2013-04-03 12:13
Johannesburg - South African Airways (SAA) announced on Wednesday that it submitted a Long-term Turnaround Strategy to the Public Enterprises Minister, Malusi Gigaba. The handover was made on Tuesday to the Minister by Dudu Myeni, the acting Chairperson of the SAA Board of Directors on behalf of the airline.

The submission of the strategy is in line with Minister Gigaba's directive issued on 15 October 2012 during the airline's Annual General Meeting. Gigaba indicated that SAA must develop and submit a long term turnaround strategy aimed at improving the airline's financial sustainability and operational efficiency.

SAA considers the submission of this strategy on time to its Shareholder as a clear indication of its commitment to ensure that its implementation is accompanied by the measurable deliverables within specific time frames.

"This is the first, all-encompassing strategy for the airline and a defining moment in SAA's 79 years of existence. The strategy will be followed by a comprehensive implementation plan aimed at ensuring successful delivery of its objectives, once reviewed by the Department of Public Enterprises" said Myeni.

There will be a three-phase implementation approach of the strategy with continuous and cyclical monitoring and review over a twenty year period. There will be specific and measurable outcomes in each of the three implementation phases (short, medium and long term). Consequently, the impact will be felt from year one of the implementation whilst other interventions will take place in the medium and long term phases of the strategy.

News24 Travel asked SAA spokesperson Tlali Tlali if he could embroider on the three-phase implementation and the impact it will have on the airline - specifically on passengers and pricing - as well as the measurable outcomes they have set. 

"We have been made to understand that the Department of Public Enterprise could be able to give us feedback within one month from now, telling us whether the strategy enjoys support from the shareholder or not. Once we have that indication, and assuming it will be a favourable feedback, we will then unpack the strategy and share some details with the media and the public. We must observe protocol and accord the shareholder the necessary space and respect. Divulging details at this stage could prove to be a premature exercise and amount to second-guessing the shareholder’s reaction to the strategy," Tlali

"As indicated in the statement one of the key focus areas is accountability. The strategy is focusing on the critical areas of the entire company, its divisions and subsidiaries that constitute SAA Group."

“We have handed it over to the shareholder and once they give it a thumbs up we will be able to share more details about the impact the implementation will have on the workings of the airline as well as the outcomes we aim to attain,” he said.
 
He further emphasised their choice to employ a phased approach, saying that in this way they will be able to track the progress of their turnaround by the measurable outcomes reached in each phase. 

"One of the key elements of the strategy is increased focus and emphasis on governance and accountability. These will go a long way in restoring SAA's reputation in the global markets and among its stakeholders," Myeni added.


 
Read more on:    flights  |  travel south africa
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