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South African Airways Could Adopt Telkom Model of Governance: Report

Public Enterprises minister Pravin Gordhan says that the government would consider a shareholder structure similar to Telkom, for South African Airways.

Telkom runs independently from the government, despite it having a 37% stake in the listed entity, while state-owned Public Investment Corp holds approximately 15%. The rest is owned by institutional investors and the public.

“Telkom is an interesting model that we could actually look at as we go forward,” Gordhan reportedly said to eNCA.

The National Treasury last week committed to support and source funding for the airline’s new business rescue plan.

It is projected that R10.1 billion will be required to fund the plan. This money will be used to:

  • Clean up and establish the balance sheet;
  • Restructure the rest of the group entities that are not in business rescue;
  • Provide working capital for the rest of the group’s entities;
  • Create a stable and viable platform for a new restructured national airline.

The restructuring will also include severance packages to about 2,700 SAA employees who will be retrenched, the Department of Public Enterprises said.

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email info@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

South African Airways is Changing Certain African Flight Routes and Reissuing Tickets

The below is a media statement released by South African Airways.

South African Airways is further strengthening its presence in Ghana by increasing weekly frequencies from 9 to 10 flights between Johannesburg and Accra, and by launching a daily service between Accra and Washington DC, with effect from 5th September 2019.

South African Airways regrets the inconvenience that this strategic decision may have on our customers and would ensure that those customers that already hold tickets for the affected flights are re-accommodated.

Ticketed SAA customers travelling between Johannesburg and Washington D.C. via Dakar (Blaise Diagne International) will be re-routed through one of the following options:

  1. Passengers travelling between Johannesburg (JNB) and Dakar (DSS):
    From Johannesburg (JNB) to Abidjan (ABJ) on flight SA 056 and from Abidjan (ABJ) to Dakar (DSS), on either Air Côte d’Ivoire (HF), Kenya Airways (KQ) or RwandAir (WB)
    From Dakar (DSS) to Abidjan (ABJ), on either Air Côte d’Ivoire (HF), Kenya Airways (KQ) or RwandAir (WB) and connecting onto flight SA 057 from Abidjan (ABJ) to Johannesburg (JNB)
  2. Passengers travelling between Johannesburg (JNB) and Washington D.C (IAD) via Dakar (DSS), SAA will re-accommodate passengers onto the Johannesburg (JNB) – Accra (ACC) – Washington D.C. (IAD) route and vice versa.
  3. Passengers travelling between Washington D.C. (IAD) and Dakar (DSS), can be re-accommodated via Brussels (BRU) to Dakar (DSS) on Brussels Airlines (SN) and vice versa.
    SAA will rebook affected passengers holding tickets as mentioned in points 1, 2 and 3 and the following rebooking conditions will apply:
  • Change of cabin class will not be permitted
  • Change fees will be waivered
  • Tickets must be re-issued on or before 23 August 2019. The issuing agent may re-issue the ticket with the following endorsement: INVOL SKCHG due to SA 207/208 CXD/Date
  • In the event where passengers do not wish to travel as re-accommodated by SAA, passenger may request a full refund of the unused ticket, without penalty.

Customers are encouraged to contact your Travel Agent, any SAA Office or our Contact Centres for assistance with flight changes.

The South African (Johannesburg) assistance line is 0861 606 606, and the US assistance line (Fort Lauderdale) is 1 (800) 722 9675.

To read the full media statement, click here.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Adrian Pingstone [1], [2].

SAA Launches Direct Service to Guangzhou – China’s ‘Manufacturing Hub’

South African Airways (SAA) announced on Sunday that it will launch direct flights between Johannesburg and Guangzhou, China, on September 18, 2019, giving customers access to the heart of China’s export led manufacturing industries.

According to a statement by SAA, this is yet another strategy implementation initiative aimed at enhancing its route network.

“The decision to launch this direct service between Johannesburg and Guangzhou means we remain on track in executing our strategy to transform SAA into a fit for the future airline that will operate both efficiently and competitively,” commented SAA CEO Vuyani Jarana.

The Guangzhou route will cater for a spectrum of travellers between Johannesburg and China including business and corporate travellers and will be of special interest to traders. Cargo operations will complement the viability of this route considering that high value cargo is sourced from Guangzhou.

SAA will be the only carrier operating a direct service between Johannesburg and Guangzhou, with flight time of approximately 13 hours and 40 minutes, providing the shortest travel time on a nonstop basis between the two points.

There will be three new flights per week to Guangzhou, in South China, and these will complement SAA’s current operations to Hong Kong. This means, SAA will fly four times a week to Hong Kong. Airbus A340-300 aircraft will operate both the Guangzhou and Hong Kong routes.

Guangzhou is the largest city in the Guangdong province in South China and the third largest Chinese city after Beijing and Shanghai. It is an important transportation hub and trading port, located on the Pearl River about 120km Northwest of Hong Kong.

“Adding a direct service to mainland China, combined with our current popular flights to Hong Kong provides SAA with immense growth opportunities to and from mainland China. It also gives our traders access to the centre of Chinese manufacturing,” said Jarana.

The province of Guangdong is the centre of China’s export led manufacturing industries and described as “the world’s manufacturing hub”. Formal and informal traders source the majority of goods purchased in Sub-Saharan Africa from the province, due to Africa’s poor manufacturing capacity.

For more travel options for SAA customers flying to and from Guangzhou, the airline has interline agreements with China Southern Airlines, China Eastern, Air China and Hainan Airlines.

SAA said it is also negotiating a code share agreement with Hong Kong Airlines, anticipated to be in place this financial year, for further travel options for customers travelling beyond Hong Kong. Hong Kong airlines will codeshare on SAA’s Hong Kong-Johannesburg sector and provide feeder traffic from Japan, Korea, Philippines and China.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].