SOUTH AFRICAN AIRWAYS (SAA) says that it has put its Boeing 777 contract on hold and is reviewing the order, which could see it reduced in size or switched to a lease rather than a purchase.
SAA placed orders in December 1995 for four 777-200s and one Boeing 747-400, and placed options for three 777-200s and one 747-400. The airline is now re-examining the structure of the whole order. The initial delivery schedules had already slipped - ostensibly because of failure to select an engine.
According to Zukile Nomveti, executive director at SAA's parent company Transnet with responsibility for SAA, although the airline signed a firm contract with Boeing in February, it cannot justify the acquisition as it originally stood.
"We are not in a position right now to go for an outright purchase. We may have to consider an operating lease.
Source: Flight International
