SAA's priority to reposition itself as world-class airline BEFORE finding strategic partner, says CEO Lamola
CEO John Lamola responds to reports that South African Airways plans to raise R2.25bn as part of a turnaround plan.
John Lamola, CEO of SAA. Image: LinkedIn
The Money Show's Stephen Grootes interviews John Lamola, CEO of our national airline.
South African Airways (SAA) could be going to market to raise R2.25bn and seek a strategic equity partner as part of a five-year restructuring plan, Business Day has reported.
In conversation with Stephen Grootes, SAA CEO John Lamola says their proposal is not even a proposal as such, but the result of 'a continuous business planning process'.
It links back to the collapse in March last year of the transaction which would have seen a 51% stake in the national airline sold to the Takatso Consortium, following years of negotiations.
"Last March there was a major announcement that SAA will no longer be pursuing the Takatso Aviation strategic equity partnership transaction, AND that SAA will no longer be dependent on the fiscus for its financial sustainability. So, we've worked out a five-year business plan, which we call a corporate plan in terms of our SOE planning framework."
John Lamola, CEO - SAA
The plan breaks down the trajectory of SAA's growth into two phases, Lamola says, with the quest for a strategic equity partner falling only into the second phase.
"During the first phase of the coming two years we'll be working on SAA's operational revenues and, as we modernise into a more expensive fleet, perhaps naturally then seek external capitalisation that could come in the form of a strategic equity partner."
John Lamola, CEO - SAA
For now, the issue of a partner is not a priority, Lamola says.
The focus for the coming three years is to get SAA remodelled and repositioned into a world-class airline, he goes on.
"If we look for a strategic partner, that will grow out of the organic analysis of what we need as an airline on the southern tip of Africa which has an ambition of having a global reach."
John Lamola, CEO - SAA
"The whole process will be driven by SAA management this time, and not by the shareholder who happens to be a political institution. We need a partner who'll give us a linkage into the global aviation networks, enhance our technical strength and assist us in acquiring the most modern aircraft that we'll need five years from now."
John Lamola, CEO - SAA
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