SAA plans a more efficient fleet
May 13, 2008
Johannesburg - The board of South African Airways (SAA) has approved a fleet plan for additional wide and narrow body aircraft.
This is to be rolled out phases that allow for immediate, medium and long term action, the airline said on Tuesday.
Providing an update on the airline's restructuring, chief executive Khaya Ngqula said SAA has to replenish and modernise the existing fleet to take advantage of network growth opportunities and to improve operating cost efficiencies.
"We need to remain competitive, to ensure that we operate as efficiently as possible from a cost and fuel efficiency point of view, particularly in light of the soaring oil price. We also need to make preparations which will allow us to take advantage of future growth in travel demand," said Ngqula.
As part of the immediate phase of the new fleet plan, SAA will lease six aircraft - three wide and three narrow bodies - to be delivered in the current financial year.
The leased aircraft will have an immediate impact on the airline's growth plans and will be used on existing and start-up routes.
As part of the medium term fleet plan, which spans 2010 to 2014, SAA will conduct an aircraft supply competition for Airbus and Boeing aircraft as soon as possible this year for the acquisition of replacement and additional aircraft.
This competition will be undertaken in terms of the Public Finance Management Act (PFMA) as it is deemed to be a material acquisition, and approval will be sought from the shareholder ministry, the Public Enterprises Ministry, and Treasury.
The supply competition will also cover SAA's longer term fleet expansion requirements, in line with network requirements and the restructuring plan. The additional aircraft will enable the airline to add further capacity on existing routes.
Capacity will be added this year to Cape Town, Luanda, Dar es Salaam, Entebbe, Victoria Falls, Mauritius, Mumbai, Frankfurt, Munich, Perth and Sao Paulo. Capacity will be added to additional routes over the next five years.
SAA has an existing fleet of 49 aircraft - nine A340-600s, 11 A319s, six A340-300s, six A340-200s and 17 Boeing 737-800s, of which four are leased to low cost carrier Mango.
SAA said Africa remains a key focus for the airline in terms of growth, and additional capacity will continue to be placed on new and existing routes into the continent, it said.
Central to the restructuring plan and network strategy is building Johannesburg as the strongest hub in Africa, while adding to an already extensive route network across the continent.
New routes will be added to the regional and international network, beginning initially with Maun in Botswana from October. Maun, the gateway to the Okavango Delta, will be an excellent fit for SAA's route network as the Okavango Delta is one of the most significant tourist attractions in Africa, drawing over 30 000 international tourists per year.
Adding daily flights to Maun holds huge growth potential for SAA as customers coming from international destinations will be able to connect through Johannesburg to Maun, the airline said.
SAA's international flights from OR Tambo International are able to capture connecting traffic from domestic and regional Africa to increase the total passenger numbers on these international flights.
To ensure it has sufficient crew to support these growth plans, SAA is also currently in the process of employing more pilots and cabin crew.
"We are confident that our present selection process will result in us finding pilots with the necessary qualifications and experience to complement our current pool of pilots," said SAA head of flight operations Johnny Woods.
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