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As Oil Price Falls, SAA passenger benefit from reduced fuel levey

Johannesburg, 24 June 2012.

South African Airways today announces significant price cuts following global reductions in jet fuel prices.

Flights between Johannesburg and a number of African destinations will experience average reductions of USD 15 per segment (approximately R 249 per round trip), while total long haul return ticket costs will be cut by USD 7 per segment (approximately R 116 per round trip) and domestic return flights by USD 5 per segment (approximately R 83 per round trip). The African destinations benefitting from the steepest cuts include Cameroon’s commercial capital Douala, the capitals of Gabon, Burundi, and Rwanda, Libreville, Bujumbura, and Kigali, as well as the commercial capital of Benin, Cotonou, and the Congolese oil hub of Pointe Noire.

“We are able to offer the deepest cuts on these African routes because the price of jet fuel in these cities is generally higher than the international average,” said SAA CEO Siza Mzimela. ”As a result, although fuel prices remain higher than elsewhere internationally, when oil prices drop, the reduction results in a larger actual saving to our passengers”.

The decreases more than compensate for the European Union carbon emissions tax of between 1.00 and 2.00 Euros (between roughly R 10.34 and R 20.68) SAA will implement under protest next month. The carbon emissions tax is opposed by airlines and governments around the world because it has been unilaterally imposed by the EU despite proposals by the International Air Transport Association for a fair and equitable approach to be agreed under the auspices of the United Nations International Civil Aviation Organisation.

SAA passengers have already started benefitting from the fuel levy reductions made possible by the global fall in oil prices as the new, lower fuel levy was implemented last week

“As the leading airline to, from and within Africa, we are delighted to be able to pass on to our passengers the current savings we are able to make as a result of falling global oil prices,” said Mzimela. “Within the overall context of our growth and optimisation strategy for SAA, we will continue to manage our fuel and other costs to the maximum benefit of our passengers and the economy.”

**ENDS**

Further inquiries:

Dileseng Koetle
Head: Communications
Tel: +27 11 978 2298
Mobile: +27 83 400 0041
Email: dilesengkoetle@flysaa.com

or

Kabelo Ledwaba
Communications Manager (External)
Mobile: (+27) 083 414 4720
Tel: (+ 27) 011-978-2760
Email: kabeloledwaba@flysaa.com

About SAA
South African Airways (SAA) is the leading carrier in Africa, serving 26 destinations across the continent, as well as major destinations within South Africa and internationally from its Johannesburg hub. It is a member of the largest international airline network, Star Alliance. SAA’s core business is the provision of passenger airline and cargo transport services together with related services, which are provided through SAA and its four wholly owned subsidiaries: SAA Technical; Mango its low cost carrier; Air Chefs, the catering entity of SAA and South African Travel Centre (SATC). SAA CEO Siza Mzimela is the first woman to be appointed to the IATA Board of Directors in its 67 year history. SAA is the winner of the 'Best Airline in Africa’ Award in the regional category for nine consecutive years and the winner of ‘Service Excellence Africa’ for two consecutive years. Mango and SAA hold the number one and number two successive spots as South Africa’s most on time airlines.

 

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