JOHANNESBURG. 28 October 2016. SAA has just concluded its first AGM since the new board was appointed in September 2016.  The meeting continued the conversation the Minister and the new board began in early September. 
 
The board provided feedback on the progress that has already been made.  Whilst there is still a great deal of work to be done, the board, the shareholder and management are committed to doing everything necessary to return the airline to financial sustainability. 
We would like to draw your attention to the contents of the Annual Financial Statements for the 2014/15 and 2015/16 financial years were adopted at its AGM today. SAA recorded losses of R5.6 billion and R1.5 billion in the 2014/15 and 2015/16, respectively.
 
Although the airline has reduced its losses, the Board and the shareholder recognise that the trend of reporting losses cannot persist and that urgent, radical action is required. To mention but a few, these include stabilising the liquidity position of the airline, containing costs, reviewing the route network, improving staff morale and continuing to deliver a safe, on-time world class service.  All of these areas will be addressed in the context of the broader turnaround strategy. 
 
The Board is reviewing and strengthening the airline’s long term strategy to accelerate the turnaround and to ensure its robustness in the context of increasing competition and volatile movements in fuel and exchange rates. This will include developing a short-term action plan within the next three months of concrete actions that will be taken to begin restoring the operational and financial stability of the airline.
 
The Board has initiated the process of appointing a permanent CEO and CFO, with the aim of making a recommendation to the Minister early in the new year.
 
SAA will keep the public abreast with the airline’s plans as they are finalised by the Board and shareholder. The path will certainly not be an easy one: diligent implementation will be required to ensure the turnaround of the airline.  The primary focus over the next few years will be on returning the airline to financial sustainability. 

Click here for Annexure
 
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About South African Airways:

South African Airways (SAA) is the leading carrier in Africa, serving 74 destinations, in partnership with SA Express, Airlink and its low cost carrier, Mango, within South Africa and across the continent, and nine intercontinental routes 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 wholly owned subsidiaries: SAA Technical; Mango its low cost carrier; and Air Chefs, the catering entity of SAA. SAA is the winner of the 'Best Airline in Africa’ Award in the regional category for fourteen consecutive years and the winner of ‘Best Airline staff in Africa’ for four years. SAA has been named the coolest domestic airline at the Sunday Times Generation Next Awards.
 
For media information, please contact:

SAA Spokesperson
Tlali Tlali
Email:   TlaliTlali@flysaa.com
Mobile: +27 82 333-3880
Office:  +27 11 978-2298
Web:     www.flysaa.com
Switchboard: +27 11 978-1000