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SAA boss rakes in close to R20m

Oct 01 2008 11:16

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Cape Town - SA Airways CEO Khaya Ngqula has been paid almost R20 million since his appointment on October 15 2004, it emerged on Wednesday.

In a written reply to a parliamentary question, Public Enterprises Minister Brigitte Mabandla said Ngqula's salary and fund contributions totalled R2 295,000 in 2004/05.

In 2005/06, he received a salary and fund contributions of R5m, as well as a performance bonus of R1 850 000.

His salary and fund contributions again totalled R5m in 2006/07, and again in 2007/08, when he also received a "retention premium" of R687 669.

In the four years he has been SAA CEO, Ngqula has thus taken home R19 832,669.

Mabandla said Ngqula's contract would expire in October 2010.

"At this stage no consideration is being given to replacing the CEO of SAA. The airline operates in a tough commercial environment and the current management team and CEO continue to sustain SAA's high service standard in a difficult market environment," she said.

SAA posted huge losses in 2006/07 and was thrown a R1.3bn lifeline by government with promises of more, subject to its return to profitability.

SAA's losses totalled R883m, with operating costs of R21.3 billion outstripping income of R20.6bn, for the year ending March 2007.

The airline has reportedly asked for R3bn from the National Treasury this financial year to offset losses sustained in the last financial year.

However, in July this year, Ngqula said SAA's restructuring had resulted in more than R1bn in costs being "taken out" of the organisation.

SAA reported a turnaround to post a R123m net profit (excluding restructuring costs) from ongoing operations in the year to end March 2008, against the loss of R883m the previous year.

- Sapa

 
 
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