SAA adds 10 more aircraft to their fleet

2013-07-23 22:43

Johannesburg - SA Airways (SAA) and Standard Chartered Bank have signed a deal enabling the airline to acquire 10 Airbus A320-200 aircraft, the company said on Tuesday.

"The aircraft will be delivered over the next two years, with the first two deliveries taking place in July this year [2013]," said newly appointed SAA CEO Monwabisi Kalawe.

The deal was brokered by Standard Chartered aviation finance team Pembroke, and is a 12-year sale and leaseback agreement with SAA for 10 Airbus A320-200 aircraft.

Pembroke would own the 10 aircraft and lease them to SAA over 12 years.

Kalawe said the company was grateful that Standard Chartered had agreed to be the financiers for the first 10 aircraft in the SAA fleet renewal.

"The deal will significantly enhance SAA's domestic and regional growth strategy to become the carrier of choice in Africa," Kalawe said.

"The Airbus A320-200 aircraft are central to SAA's plans to provide an efficient and comprehensive regional route network."

He said the deal provided the necessary solution by securing a new generation, fuel-efficient fleet.

Kieran Corr, head of aviation finance for Standard Chartered, said: "We have long-standing relationships with our clients and meeting their needs is our top priority."

Pembroke is wholly owned by Standard Chartered PLC and owns and manages a diverse portfolio of more than 90 aircraft.

  • Dexter Tangocci - 2013-07-23 22:48

    Terrible choice. You can't go wrong with the 737-800

      JD Weilbach - 2013-07-24 08:37

      Absolutely. 1. Compare the Airbus safety record vs Boeing (Airbus crash more often). 2. Boeing is cheaper and simpler to service - fewer opportunities for mistakes and in the absurd Affirmative Action circus that is SAA this is going to be fun and games. My suggestion - if you have any long term plans to survive - avoid SAA like the plague (that it has become). 3. Airbus' backup does not match Boeing by a country mile.

      yaya188 - 2013-07-24 08:45

      I am being obtuse here.......I thought SAA were broke?

      heathwaymasters - 2013-07-24 14:39

      Sincerely hope SAA will have enough qualified pilots left to get these planes into the air, following their blatant black racist policy of banning any white trainee pilots. Due to these discriminatory policies, I would imagine that most pilots will have joined other international airlines where skin colour is irrelevant, and the only consideration is how competent the pilot is in flying his jet.

      Ivan Tavla - 2013-07-24 15:11

      There were 7 white females selected. Aren't they white enough for you?

      Ivan Tavla - 2013-07-24 15:15

      >>>JD Weilbach - 1. Compare the Airbus safety record vs Boeing (Airbus crash more often). Didn't the nosewheel of a 737 just break off in New York recently. That can't be good. Doesn't SAA also operate 737-800's

  • Stephen Fienberg - 2013-07-23 23:02

    Is Airbus bribing someone in the airline to only buy Airbus? Not saying they are bad planes but not all their models are better than the Boeing competitor. The whole fuel efficiency excuse is BS seeing as they chose to make the A340 the backbone of their long-haul fleet over the more fuel efficient and similar sized B777.

      AJ Nadeau - 2013-07-23 23:23

      The A-340 is a proven to be reeliable aircraft..The 777???...Lets see now..Battery problems...etc...

      Valerio Xaba - 2013-07-23 23:25

      Its not BS. The A340 is the best aircraft for long haul out of a hot & high like OR Tambo.

      Valerio Xaba - 2013-07-23 23:52

      AJ Nadeau, battery problems affect the Dreamliner, not the B777.

      Stephen Fienberg - 2013-07-24 01:49

      The 777 has been operating for a bit longer and both their incidents have been a result of pilot error. The twinjet is capable of generating just as much thrust as the A340 and loads of other airlines seem to manage just fine flying 777's out of OR Tambo, even Delta which uses it for a 17 hour flight to Atlanta. The A340 uses nearly 10% more fuel per passenger hence Airbus stopped making them as they couldn't compete with the 777 when the fuel price went ballistic about 5 years ago.

      Valerio Xaba - 2013-07-24 02:47

      @Stephen, all 777s are load restricted out of OR Tambo coz they are twinjets and because of tyre speed limits. So they dont lift as much cargo as A340s out of Jhb especially on long routes. Delta uses the LR version of the 777, and even that one is Take off weight restricted due to rotation tyre speed limits. The A340 was the best at the time of purchase for an airline with a hub like Jhb. But with the arrival of the 787 family and A350, they will be excellent repacements

      Valerio Xaba - 2013-07-24 03:00

      @Stephen, even though Twinjets like a 777 generate equal or even more thrust than A340s, however the engine-out requirements at take-off from a hot & high like Jnb, means the Twinjets have more take off weight restructions, sometimes it means leaving passengers on warm days

      Tyron van Greunen - 2013-07-24 08:47

      @ AJ,one does not simply just dissapear...

  • Johan Beneke - 2013-07-23 23:22

    I was under the impression that SAA is about insolvent, so how come they managed to put together this deal? Or am I confused with the finances od SABC?

      Valerio Xaba - 2013-07-23 23:53

      Same way that American Airlines financed one of the biggest aicraft orders yet it filed for bankruptcy same year

  • Anne Somerville - 2013-07-24 01:50

    How does a bank finance a company that is bankrupt ??? !!!

  • Jim Binnie - 2013-07-24 02:08

    Good Luck SAA - you are now downsizing from an international airline (where you cannot compete) to a local sub saharan airline (where you may compete until EasyJet and others come into play. As a frequent long haul passenger I have switched from SAA to (preferably Emirates)to get good service - on time - and with a smile!!!

      Arthur Salvado - 2013-07-24 07:33

      I'm with Jim. No SAA for me on international flights. And yes, what a pleasure to fly Emirates. Service and planes are of a very high standard. SAA, listen carefully, Service sells.

      Tugwana - 2013-07-24 14:51

      You are speaking for yourselves right? Hundred other passengers aren't sharing your sentiments. Go fly Emirates, it's your choice; so as flying SAA, our flag carrier.

  • Derek Bekker - 2013-07-24 03:41

    How many fat cats will benefit from this deal?

      Jacques Shreky Stander - 2013-07-24 07:22

      Ya!! Id love to know..........

  • Richard Scully - 2013-07-24 05:39

    Easy to fund with tax cash....I hope the banks get burnt using taxpayer the government doesn't pay them....this is sick...SAA should be sold

  • Eidel Bock - 2013-07-24 05:58

    SAA is bankrupt, so who finance the del....

      Darryl Maze - 2013-07-24 08:28

      We the hard working taxpayers have to fit the bill at the end of the day.

  • Kalahari Kgalagadi Safaris - 2013-07-24 05:58

    Also add Affirmative Action pilots with 30% passrate and you have a winner!

      Arthur Salvado - 2013-07-24 07:35

      I will not fly SAA . Flew business class from Frankfurt and service was not only sub standard but shocking. Got off Cathay Pacific so now you understand the shocking service I experienced

      Ivan Tavla - 2013-07-24 12:17

      Wasn't that the pass rate of the South African Air Force during the glory filled apartheid era? It was you know. Might be something to do with high standards.

      Paul Woods - 2013-07-25 18:30

      yes ivan it was but then it was 30 percent of canidates passed now its get 30 percent to pass!

  • Davide Mtshali - 2013-07-24 06:21

    lets hope those airbus wil able to rich those small town such as ULUNDI RICHARDS BAY TO GAUTANGAND DURBAN AS WEL and affordable to all SA PASSENGERS

  • Raymond Kok - 2013-07-24 06:44

    trowing good money after bad,SAA is too top heavy at present too much chiefs and too little indians cut away the excess fat and you will save millions ,and get rid of the drug mules stewards

      Johan Jacobs - 2013-07-24 07:23

      And perhaps a Airbus A380 or Boeing 747-8? I am dreaming now, but a South African livery would look nice on a Airbus A380.

  • Jacques Shreky Stander - 2013-07-24 07:21

    More planes ........ More ways of wasting my tax money. Someone got rich from this purchase ......... How long must we still fund this unsuccessful business? ??????????

  • Raymond Kok - 2013-07-24 08:50

    improve your attitude and trim the excess idiots make it streamline and start paying back all the money you got from the people or sell the bloody airline and save us a whole lot of moola

  • Kurt Overton - 2013-07-24 11:23

    are the A380-800 for international!!!

  • Anton L├╝ckhoff - 2013-07-24 12:35

    if it ain't a Boeing I'm not going.

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