Loading...
See More

SAA lacks planes to fly to China

Oct 06 2010 11:14 James-Brent Styan

Related Articles

SAA posts R581m profit

SAA stops Durban, Cape Town flights

SAA upgrading, not expanding fleet

Claims against SAA's Ngqula grow

SAA: state 'ignored' earlier warnings

Ngqula adds more indiscretions to list

 
Johannesburg - South African Airways (SAA) wants to fly to China, but does not have enough planes to serve the route.

SAA CEO Siza Mzimela said its existing fleet limits expansion to more profitable routes.

The airline wants to fly to China, but does not have enough planes to serve the route. China is the market where everyone wants to be, said Mzimela.

SAA has nine A340-600 planes which could be used for the Chinese route, but they currently fly to other long haul destinations, like London and New York. The A340-600 is SAA's biggest plane with the longest distance range.

Johannesburg is ideally located to be an excellent connecting point between South America and China, said Mzimela. SAA needs to capitalise on this strategic advantage.

The airline will receive the first delivery of six new Airbus A330-200 planes next year. One of the planes will be used on the London route and another to fly to South America.

SAA's stretched balance sheet – it has a debt to equity ratio of 20:1 – makes it difficult for the airline to get financing. Mzimela, however, is upbeat about financing prospects.

The airline has already secured financing for the new A330-200 planes, which have a current price tag of $190m each (before discounts and other allowances, which are the norm with these kinds of deals).

SAA will also receive the first of 20 new A320 planes in 2013. Financing for these planes still needs to be concluded.

The new-generation planes, which can use up to 25% less fuel, will play a big role in SAA's future profitability.

- Sake24.com

For business news in Afrikaans, go to Sake24.com.


saa  |  china
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
12 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

6 life hacks you simply have to know

A few simple tricks can make your life so much easier!

 
 

For chic geeks...

Device lets disabled people talk through their nose
It’s THIS easy for someone to steal your ATM pin!
This is why you should install iOS 8
17 photo illusions that look so real

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...