Dudu Myeni is gone, where to from here SAA?

Democratic Alliance Shadow Deputy Minister of Finance Alf Lees says they welcome the axing of Dudu Myeni as chair of SAA because she incurred huge losses and has had a negative impact on the airline.

Lees says he thinks the appointment of JB Magwaza as new SAA chair is a wise decision, given his background in business.

Read: Dudu Myeni gets kicked out of the SAA board

Whether the new board stands a chance of turning it around, has yet to be answered.

Alf Lees, Shadow Deputy Minister of Finance for DA

This is a very competitive industry and the margins are very tight. This is not an industry that you can walk into and make profits without making robust changes.

Alf Lees, Shadow Deputy Minister of Finance for DA

He says the bloated staff employment is going to be a huge challenge for the new board.

SAA's is about 30% overstaffed compared to other international airlines, says Lees.

SAA has to be run like a business. Over the years, under the leadership of Dudu Myeni, it's been run as an enterprise that is party to enriching certain people. It hasn't been completely run on competition.

Alf Lees, Shadow Deputy Minister of Finance for DA

If you are going to award contracts on the basis of black empowerment, they have to be competitive.

Alf Lees, Shadow Deputy Minister of Finance for DA

Turnaround Management Association Executive, Robin Nicholson says having a proper board in place is a great starting point to turn things around for SAA.

He says the board has a huge task of rebuilding the brand and fixing past mistakes and ensuring a good team is in place.

SAA has good people working for it in the flight operation. All you want for an airline are planes that arrive on time, safely flown, and SAA has an outstanding record in that regard.

Robin Nicholson, Turnaround Management Association Executive

To hear more of this interviews, listen below:


This article first appeared on CapeTalk : Dudu Myeni is gone, where to from here SAA?


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