South African Airways is warning that it is not financially strong enough to support a salary demand from pilots, who have threatened to strike from 5 December.
The carrier has been negotiating with the SAA Pilots Association, but claims the association’s initial request for a 30% wage increase – subsequently lowered to 15.7% – remains too high.
SAA has offered a backdated 8.46% rise.
Although the carrier recently posted a small full-year profit of R252 million for 2022-23, interim chief executive John Lamola says the airline is not financially robust, and cannot depend on recapitalisation from the government.
“SAA cannot return to the lucrative benefits that [its] pilots have historically enjoyed,” he states, adding that meeting the 15.7% wage demand will “trigger SAA’s decline into bankruptcy”.
Lamola points out that pilots “ironically” have chosen to strike on the anniversary of the airline’s entering business rescue in 2019. The carrier emerged from business rescue in 2021.
“SAA has only recently regained its operational viability,” says Lamola.
“In order not to disrupt this momentum, we are committed to ongoing negotiations with [the pilot association] and to do everything possible to reach a fair settlement that is mutually beneficial to both the pilots and the company.”
Industrial action by pilots would disrupt the peak travel season, and the carrier is preparing contingency measures.
SAA insists its salary offer is “significantly higher” than general increases across the country, and aligns with those granted to other SAA personnel this year.
Representatives of the pilot association could not immediately be reached for comment.
