South African Airways (SAA) is ambitiously expanding its routes, targeting nine new destinations and boosting its fleet by 50% by March, as it rebuilds its business following the collapse of an investor deal. With a focus on regional and international markets, the airline aims to connect South Africa with key global partners, planning future routes to Frankfurt, Munich, London, and the US East Coast. Despite past reliance on taxpayer funds, SAA is now cash-positive and poised for growth, collaborating with Kenyan Airways on a pan-African project to enhance connectivity and procurement capabilities.
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By Loni Prinsloo and Jennifer Zabasajja
South African Airways plans to add more destinations on the continent from its hub in Johannesburg by the end of April as it rebuilds its business to focus on regional and international routes after a deal with an investor collapsed.
The company is aiming to add nine destinations to its existing 14 and also plans to boost the number of aircraft by 50% to 21 by March, interim Chief Executive Officer John Lamola said, adding that the South African flag carrier has the cash to fund its expansion. He declined to identify the new routes.
âWe are cash positive as a company, and we are able to survive in the next 12 to 18 months on our own,â Lamola said in an interview with Bloomberg Television in Johannesburg. âOur strategic position is to differentiate ourselves as a national flag-carrier to be able to offer the country the connectivity with key investment and trading partners.â
The carrier also plans to open routes to Frankfurt, Munich, London and to cities in the east coast of the US, Lamola said, though those destinations would only be considered in the year ending March, 2028.
Read more: Magnus Heystek: First light of dawn? SA moving away from the abyssÂ
The airline, founded in 1934, has had rely on taxpayers for years until its bankruptcy following the pandemic. A plan by the government to sell a 51% stake in the carrier was abandoned in March, forcing the company to scale back its expansion plans after its exit from business rescue. While South African Airways wonât seek bailouts, it would ask for sovereign guarantees to expand over the next three years, Lamola said.Â
Plans by President Cyril Ramaphosaâs government to sell its stake in the company to the Takatso group â made up of closely held Global Airways and private equity firm Harith General Partners â were scrapped in March. The deal would have resulted in a 3 billion rand ($163 million) cash injection for the airline.
Lamola said the carrier needs an airline partnership that could assist it in extending its reach. South African Airways is working with Kenyan Airways on a project to create a pan-African group, although it focuses on optimizing procurement and connectivity capabilities, rather than an equity injection.
âThe domestic market is not our priority,â Lamola said. âRegional and international markets are our focus.â
Read also
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