Chris Yates/JOHANNESBURG
A SERIES OF COST-reduction measures, including rationalisation of its European network and the closure of offices worldwide, should allow South African Airways (SAA) soon to report significantly improved financial results.
"Our official results will be made known within the next two weeks, for the 1994/5 financial year. They will show profits in the region of R220 million [$60 million], which represents a quite dramatic turnaround over the previous 12 months. The predictions for 1995/6 show profits in excess of that figure, and the trend will continue to go in the right direction," says the company.
Following an operating loss in 1993/4 of R23 million, the results are seen as a remarkable achievement by SAA, and have been assisted by loan restructuring and expansion of its route network into the vibrant Far East market.
Contributing to the results is SAA's recently introduced dedicated cargo division. The carrier now operates two Boeing 737 freighters on domestic and regional routes, augmented by an Airbus A300 for regional and international service, and will soon take delivery of a 747 freighter purely to serve international destinations.
Meanwhile, SAA expects to reveal major fleet acquisitions in September. "The fleet-plan evaluation is presently under way, but, as an interim measure, we have had to look at leasing equipment until the results of that evaluation are known. Currently, we have two leased Boeing 747-400s and a 767.
"All three major manufacturers have made representatives. Equipment in the frame includes the Boeing 777, Airbus A340 and McDonnell Douglas MD-11.
No decision has been taken as yet, but we are looking at an investment in the region of R2 billion by the year 2000," says the company.
While McDonnell Douglas has made strong representations, Boeing and Airbus are said to be the major contenders - both manufacturers already have aircraft in the SAA fleet.
Source: Flight International
