SAA Seeks Hands-On Aid for CEO


Business Day (Johannesburg)
December 20, 2004

Khulu Phasiwe , Public Policy Correspondent
Johannesburg

Aviation high-flyer to assist Ngqula as carrier bids to replace lost talent

SOUTH African Airways (SAA) appears finally to have conceded it has suffered a serious drain of managerial talent, and just two months after the arrival of a new CEO, Khaya Ngqula, is to launch a global search for an experienced chief operating officer.

SAA's board has given the goahead for the post to be created, a first for the parastatal. Foreign candidates will be considered, but SAA is likely to go to some lengths to avoid a repeat of the fallout it suffered the last time it employed a high-flying foreign executive Coleman Andrews, the former American CEO of SAA.

The announcement of the new post comes as SAA embarks on a major cost-cutting exercise with the aim of shaving off as much as R1,6bn from the airline's cost structure. This will be achieved in part by reducing the perks of executives.

The new chief operating officer position replaces that of the deputy CEO previously held by Oyama Mabandla, who resigned last month. It also follows industry comments that incumbent Ngqula has little experience in the aviation sector, although he did run a large corporation the Industrial Development Corporation for several years.

A host of top managers has left SAA since last year, including Mabandla, former CEO Andre Viljoen and chief financial officer Richard Forson. This came in the midst of a period of turmoil for SAA which saw the carrier losing R15bn over the past two financial years due to its hedging activities.

SAA spokesman Onkgopotse Tabane said at the weekend that the chief operating officer would help relieve pressure on Ngqula.

"The (person) will be in charge of operations and the commercial area of the organisation mainly. Areas such as information technology will also report to him or her besides the key role of supporting the CEO in keeping a close hands-on watch across the company," he said.

He said SAA had cast its net wide in search for the skilled and competent candidate. "A worldwide search for the chief operating officer is now on."

SAA said the appointment of new staff and the reshuffling of existing people was aimed at strengthening the company's corporate governance structure and returning it to profitability.

Ngqula said in SAA's magazine that "we are a company with troubled finances". But he said drastic cost-cutting measures had to be taken to turn around the parastatal. "To turn the airline around we need to work together to maximise our strengths."

In terms of the R1,6bn cost- cutting exercise, Tabane said a number of measures would be taken to reduce "excessive" perks given to executives. These include limiting the number of international trips undertaken by the leadership team and stopping the unlimited use of company maintenance and petrol cards.

Customers would also be encouraged to book their flights online rather than through travel agents whom SAA pays about R1bn annually on commission.

Gee whiz, I wonder why they have gone to hell in a hand basket? Maybe its another example of 3rd world domination by the indigenous of the Africa???? Maybe some pockets got lined and they got jobs with the UN that were more lucrative. I do recall that once upon a time in the black continent when that company Apartied was running the country that SSA was the finest airline in the world, but those guys were criminals, my liberal Govt. told me so...Oh well such is life, and as they say, "that's just Africa"...

Not that I necessarily disagree, but to be fair to SAA, a bunch of airlines have been and are in deep trouble. Bad management is unfortunately not the sole domain of African countries, even though they seem to excel at times. (Oh boy, did I just say something "racist"... ).
- mike

No wonder they're losing talent!

Read the SAA magazine and look at the bylines that are supposedly written with loving thanks to SAA's loyal customers by some of new the poster boy-type paper executives that SAA is touting as their front men. If I was a behind-the-scenes, hands-on, trouble-shooting, decision-making executive with SAA, I'd be looking at alternate employment opportunities myself rather than put up with that transparent bullshit.

Judging by the quality and intelligence exhibited by a typical SAA flight attendant crew, I'd say they've lost a lot of talent in that department as well.

Now if the cockpit crew goes all politically-correct on us (which it hasn't so far, I don't think), it'll be time to REALLY sweat!

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Most of the arlines in the world today are in trouble - except the luxury airlines and those offering rock bottom rates in their sardine crates.

I have absolutely no sympathy for airlines at all, they deserve what they get.

They have been treating passengers with total disdain. Their services are atrocious, their seats are too small and their policies are very unfriendly.

When we fly on Emirates, one can carry two carry one bags.

When we flew in Europe last year, both SAS and LUFTHANSA would not allow us to take our carry on luggage with us in the plane. They take it off you by the plane, and hand it to you as you deplane.

We had a little baby with us, and had all her stuff in a bag, so I insisted we take it on board. And I think the nitwit only allow me to because he saw I was not going to budge - especially as we were travelling business class!

Busniss Class turned out to be the biggest rip off of all time. The seats were EXACTLY the same as in economy, and one gets s slightly different meal than the ones served in economy for the privillage of paying for it.

saeed just hit the nail on the head hear hear

I agree! The last time I flew to Europe, two years ago, I flew Lufthansa. Lord, how the mighty have fallen! That was the worst flight of my life. The seats weren't even aligned so that your feet were in front of you. I went all the way from Los Angeles to Frankfurt and then back again with my feet skewed left so that they would fit under the seat ahead of me. And they had to go under that seat because there wasn't enough room between the rows to fit them in front of my own. Add the possibility of having to listen to cretins and their cell phones yelling across the plane and I forsee a great future in cruise line stocks.
Hmmpf!

I'd like to see a couple major carriers lose their asses like Pan-Am did. Perhaps the survivers would learn a little and we(passesgers) would benefit.

Unfortunately only the US carriers have that option. The European and Asian carriers will always scream to their governments about the horrible loss of jobs (not to mentions loss of national prestige!) and their sheep-like taxpayers will find themselves bailing out the b******s. Look how long it took before the Concorde was finally kicked off the runways. Shoot, look at the "Smart" car. It's been in production for over 10 years and has yet to make a profit . . . but it's greeeeeen!