South African Airways chief executive officer John Lamola says that the newly reformed airline will shake off government meddling,\u00a0 and promises profitability.<\/p>\n
Speaking to CNN’s Richard Quest, Lamola said that SAA’s troubles over the last two years are not unique, given the state of the global airline industry due to Covid-19 – however, he said that the new airline is emerging from the crisis with a new goal in mind.<\/p>\n
“From where the industry is emerging now, South African Airways is not unique. During the Covid period, governments around the world have put up over $200 billion helping airlines perform their strategic role,” he said.<\/p>\n
However, SAA is emerging from the pandemic with a restructured business, as a totally new operation, moving ahead as a public-private entity. “For the first time, it will be run by a private entity,” Lamola said.<\/p>\n
When asked about the years of losses that necessitated costly government bailouts – as well as the widely reported interference from government officials and other politically connected persons – Lamola said that the new SAA is moving on from that.<\/p>\n
“It’s not just about bailouts,” he said. “(In years past) the South African government has been the main shareholder – and like any other shareholder, when their investment is in trouble…the government has always come into play.”<\/p>\n
Lamola said that the airline is a strategic asset for the government, hence its involvement. However, he stressed that the mentality has changed and that things are now “totally different”.<\/p>\n
“(The new SAA) is now majority-owned by a non-government entity, and secondly it’s an agile, stripped-out airline with a focused strategy of unlocking the African market,” he said. Lamola said that Africa accounts for only 2% of the global airline industry and has many opportunities for a business like the new SAA.<\/p>\n
\n\u201c[Africa] has the youngest population in the world and a growing GDP, and South African Airways is poised to exploit that market.\u201d@flySAA_US<\/a> CEO John Lamola talks the recovery of South Africa\u2019s travel industry and how his airline fits in. pic.twitter.com\/xuaWHpLdAE<\/a><\/p>\n
\u2014 Quest Means Business (@questCNN) June 20, 2022<\/a><\/p><\/blockquote>\n