SAA set to ‘rent’ out its pilots: report
As part of his cost-cutting measures to help save the airline, South African Airways CEO Vuyani Jarana is looking at possibly leasing out the state company’s pilots and cabin crew to foreign airlines battling a global shortage of flight staff.
Speaking to AFP News, SAA spokesman Tlali Tlali said that Jarana’s key objective is to protect SAA’s “employees and return to positive financial performance”.
This is because mass retrenchments would be unpopular with the flying public and the government, and the airline could also help major airlines avoid cancellations such as those that plagued Europe’s biggest airline Ryanair which had to cancel thousands of flights from November because of an admin error that led to pilot shortages.
According to National Treasury director-general Dondo Mogajane, SAA requires a R5 billion cash injection in the current financial year to help it meet its financial obligations.
However, he warned that the cash injection could not come from government as it has already pumped R20 billion into the state-owned enterprise.
Instead, other avenues are being considered to help cover the shortfall, with Mogajane saying that the National Treasury IS willing to consider selling a stake in the airliner to a private equity partner.
In May, Public Enterprises minister Pravin Gordhan announced that this would include the merger of SAA, SA Express and Mango – which he said all three currently fly to the same destinations.
“Bringing the airlines together and rationalising their routes and important. Rationalising the kind of aircraft needed at a particular time and day – that’s the experience we’re beginning to learn from airlines around the world,” he said.
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