Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

SAA loses planes after 'slip-up'

Jan 13 2011 06:37 James-Brent Styan

Related Articles

Flights chaos eases

New routes to help fund SAA aircraft

Only one SAA flight to Heathrow

SAA lacks planes to fly to China

SAA stops Durban, Cape Town flights

SAA posts R581m profit

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

 
Share Share line Print

Johannesburg - At the end of January South African Airways (SAA) has to return two aircraft it is currently leasing once their lease contracts expire.

It is rumoured that the airline's management forgot to renew the contracts. On Wednesday SAA spokesperson Fani Zulu declined to confirm or deny that this had accidentally occurred.

At the time of going to press Zulu did however confirm that the airline soon had to return the Boeing 737-800s.

He also confirmed that SAA would relinquish a third Boeing to Mango, its low-cost subsidiary.

But Zulu said that the loss of the three aircraft was no "train smash".

He said that their loss in no way meant that any of SAA's existing routes or frequencies would be affected. On the contrary, the company still planned to expand its network in 2011, which would be made possible by, for instance, more effective management of its existing aircraft.

Zulu said that the loss of the aircraft would be a problem only if the airline could no longer meet its commitments.

It was unclear who had been responsible for the renewing of the contracts and the airline was in a meeting until late on Wednesday to discuss the situation.

SAA has a poor history with regard to airline contracts. Last year, for instance, it came to light that it had neglected to cancel an Airbus contract for new aircraft. It had erroneously believed the contracts to have been cancelled.

The two 737s that will be lost are an important part of SAA's domestic and regional operations.

The airline expects to acquire new Airbus A320s to replace the Boeings only in 2013.

SAA currently has 21 of these Boeing 737-800s, which can transport 157 passengers, in service.

The company's balance sheet is seriously under pressure with heavy gearing. It is therefore possible that the airline could benefit from the lapsing of the contracts.

Zulu declined to comment on this possibility.

Ultimately, he said, it was up to the company itself what it did with its aircraft. The existing fleet could perhaps be used more efficiently without cutting down on frequencies. Should that be so, it would imply inefficiencies in the manner in which the company had previously operated its aircraft.

Kathy Bill, a spokesperson of the SAA Pilots Association (Saapa), said the airline had already informed it that that the lease agreements for the two aircrafts had not been renewed.

Discussions were being held with the airline to determine the impact of two fewer aircraft. Saapa represents pilots working for the airline.

The state-controlled airline will meanwhile start acquiring new A330-200s. These aircraft, the first of which is expected in the first quarter of 2011, are however destined for long-distance flights such as that between Johannesburg and London. 

- Sake24

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

 
 
Comment on this story
65 comments
Add your comment
Comment 0 characters remaining
Facebook's intrinsic value
May 23 2012 11:32

When it comes to judging a company’s worth, value investors like Warren Buffett look at intrinsic value. By that measure, Facebook’s shares are worth less than $10. A Reuters analyst breaks down the math. (Reuters)

Perfin

I arranged two workshops in Cape Town at the Cape Chamber of Commerce offices as well as two computer based workshops, one on Google Adwords and another on Joomla Administrator at the training centre in Somerset West. Emarketing Workshops - http://emarketingworkshops.co.za/next-workshops 1. Interne... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

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

Loading...