in Business & Finance

South African Airways issues a statement regarding audit report

Posted 14 March 2018 · Add Comment

The board and management of South African Airways has issued a statement to say it is taking urgent steps to address issues raised by the Auditor-General’s office in its 2016-17 audit report, and remains optimistic about the airline’s future.

“The board of SAA has noted and accepted the Auditor General’s report,” said CEO Vuyani Jarana. “The majority of the airline’s operations are sound, and we are building on this to ensure we break the loss-making cycle and transform the airline into a viable and sustainable entity.

“The board has developed and approved a clear strategy and five-year plan to turn the airline around, and we are working closely with the board and the shareholder to ensure we succeed.

“SAA has had many previous turnaround strategies which have not been implemented before. This time it is different: we believe the vision outlined by the board is absolutely correct, and are committed to ensuring it is put into practice.

“We need a clean break with the past and a new approach to the future, and that is precisely what we are doing. We are acting with urgency to ensure the viability and sustainability of this crucial national asset,” says Jarana.

Jarana points out that the AG’s report was the first since the Auditor General was appointed as SAA’s auditors, having been appointed as part of the airline’s commitment to audit firm rotation. The report released last week covers the financial year ending March 2017, and Jarana says it has “provided a fresh pair of eyes, particularly as the team went a number of years back where required to establish an appropriate baseline.”

“The AG has given us a comprehensive diagnosis into key areas of our business and this has provided deep insights which will contribute to a fit for purpose group of businesses.”

The AG’s report forms part of SAA’s Integrated report along with financial results for FY2016/2017, which are due to be announced later this month. The airline has incurred a net loss of R5.569 billion (2015/2016: R1,478 billion) and expects that its financial situation will not be much different for FY2017/2018.

However, a number of significant steps have already been taken as part of the turnaround strategy, with the clear aim of taking SAA to profitability in the medium-term.

The five-year plan and strategy require support and funding by the shareholder. The board and the shareholder are currently evaluating the appropriate terms for such support.

The immediate focus of the strategy is on liquidity management, balance sheet restructuring, cost management as well as revenue optimisation, which are intended to stem the losses and drive profitability.

 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Gulfstream G280 sets city-pair record on renewable fuel

Gulfstream Aerospace has reaffirmed its commitment to sustainability by using sustainable alternative jet fuel (SAJF) to power a record- breaking flight by its class-leading super-midsize Gulfstream G280 aircraft.

Mango Airlines to install Split Scimitar Winglets on Boeing Next Generation 737-800 fleet

Aviation Partners Boeing (APB) has announced that South Africa's Mango Airlines has ordered its latest Split Scimitar Winglet technology for its Boeing Next Generation 737-800 fleet.

SAA appoints Vusi Pikoli to its leadership team

South African Airways (SAA) has appointed Vusi Pikoli to its leadership team.

Acropolis Aviation takes delivery of first ACJ320neo

Acropolis Aviation of the UK has taken delivery of the first ACJ320neo, which features new-generation engines and Sharklets to deliver a leap forward in range and economy.

Africa’s top 10 tech start-ups selected for #Africa4Future

Airbus and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) have announced the top 10 African tech start-ups that will take part in the latest Airbus Bizlab #Africa4Future accelerator programme.

Emirates wins three gongs at 2018 Business Traveller Africa Awards

Emirates has received three awards at the Business Traveller Africa Awards.

AVAFA19 SK0201280219
See us at
AviAssistBT201218280219AirCargoAFA_BT220318210219AviationAfrica_BT0607280219