South African Airways

Background  South African Airways is one of the Worlds oldest Airlines  Founded on February 1, 1934  The Union of South Africa acquired all assets and liabilities of a private airline, Union Airways, and absorbed it into a new national airline called South African Airways

Cont.  The airline is the only carrier flying non- stop from North America to South Africa  With daily service from New York and Atlanta  South African Airways now serves almost 700 destinations throughout the world  South African Airways now carries over 6.5 million passengers per year and serves 39 cities in 30 countries on six continents

SAA ’ s Current Fleet SAA  B (8)  B (6)  B (5)  B747-SP (3)  B (2)  B (13)  B (18) SA Express  Canadair Regional  Dehavilland Dash 8 Series 300 SA Airlink  Jetstream 41  Embraer 135 Microjet (37 seats)

Code Sharing / Feeder Airlines  SA Express  SA Airlink  Mozambique Airlines  British Midland  Cathay Pacific  Thai Airways  SriLankan Airlines  Ghana Airways  Delta Airlines  El Al  Emirates  Lufthansa  Quantas  Varig  Air Senegal  Airlink Swaziland  SAS

SA Express Airways  Started service in April of 1994  Become one of the fastest growing regional airlines in Africa  Very important feeder airline for SAA  Fleet has 6 Canadair Regional Jets and 7 De Havilland Dash 300 turboprop aircraft  Serves at 12 destinations within Africa

SA Airlink  Is SAA biggest feeder within Africa  Has seen a 620% growth in the last 7 years  Consists of 16, 29-seater Jetstream 41 aircraft  Carries over 48,000 passengers a month  Performs 3,000 flights per month to 22 destinations in Africa

South African Airways Current Events  Feb 2002 (Africast) First Black SAA pilot appointed captain  Oct 2002 (News24) SAA set to purchase 49% of Air Tanzania  2002 (Airwise News) SAA to replace fleet of Boeing Aircraft with 41 Airbus aircraft

Cont.  Dec 2002 (flysaa.com) Code Sharing agreement signed with Mozambique Airlines (LAM).  Dec 2002 (SABC) SAA considers joining either OneWorld or Star Alliance  Jan 2003 (Reuters) SAA and Crown Aviation to purchase majority stake in Air Malawi

Cont.  Jan 2003 (iafrica) First indigenous black woman pilot employed by SAA (28 of 700 SAA pilots are black)  Jan 2003 (Reuters) SAA signs deal with Air Senegal  Jan 2003 (Sunday Independent) SAA currently evaluating new routes into Tokyo and Beijing

Financial  SAA increased revenue 26.1% last year  The large increase in revenue is due to increased passenger revenue, cargo revenue, and third party maintenance work  Cargo saw an increase in revenue at 18.9%  Technical third party revenue increased 54.6%  Flight to New York is temporarily reduced from 7 trips to 4 trips a week due to Sept 11

Leadership Team

Company Structure  CEO ’ s Pyramid  4 C ’ s Culture Customers Cost Competition  Move towards Privatization  Swiss Air sold their 20% back transnet which halted the move towards privatization

Cont.  Shake-up of leadership in last 5 years  Coleman Andrews took over CEO and made SAA profitable  Andre became CEO in April 1 st, 2001 Been restructuring ever since  Financial Turnaround with the combined efforts of Coleman & Andre 62.6 million dollar loss in million profit by 2000

Operations  Passenger Over 6.5 million passengers a year Services 39 cities in 30 countries and over 600 destinations Hosts the longest non-stop flight in the world  Atlanta to Johannesburg covers 8,739 miles in 15 hours and 25 minutes

Cont.  Cargo Use space in passenger aircraft Use of B737 freighters for domestic market in South Africa Renovated and upgraded facilities in Johannesburg, Cape Town, Durban and Port Elizabeth to ensure the best service Use of bar-coding system and Rapid Application Development System (SAFRON) Customer Loyalty Program

Cont.  3rd Party Relations SAA technician Service maintenance 47 major airlines  Cadet Pilot Training Program Established in 1994 Successfully put 43 young South Africans through program out of 4000 applicants 2 years program