African Airways News Updates 2020

24 Latest African Airways news updates.
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Dudu Myeni's interim delinquency order appeal struck off the roll

This after the former South african airways board chair appealed an earlier ruling that the delinquency judgement can be enforced even while she tries to appeal...

feb 16 2021 10:49am
business News : Mixed
SAA could exit administration this month, government says

South african airways may exit administration at the end of February and a decision on an equity partner for it could be made by the end of March, the department of public enterprises said on Wednesday.

feb 3 2021 6:03pm
mixed News : Mixed
SAA lockout an abuse of power and an attempt to scapegoat pilots - Saapa

The South african airways Pilots' Association (Saapa) is reviewing a Labour Court judgment that dismissed their bid to stop a lockout at the national carrier.

dec 30 2020 5:13pm
business News : Mixed
DPE supports business rescue's lockout of SAA pilots

The Department of Public Enterprises (DPE) says it supports the decision by South african airways (SAA) business rescue practitioners (BRP) to lockout members of the union representing pilots. This follows the long-drawn-out negotiations with South african airways Pilots Association (SAAPA), which failed to yield agreements on new conditions of employment for a future restructured airline. According to Fin24, the lockout will apply to all 383 SAAPAs pilots from 12 noon on Friday, until the union accepts a set of demands laid out by the business rescue practitioners. Lockout is defined as the exclusion of employees by their employer from their place of work until certain terms are agreed to. According to the DPE, as a shareholder on behalf of government, it believes that one of the critical areas for a restructured SAA to get off the ground is to reduce the high-cost structure caused by onerous contracts and high salaries and perks implemented under SAAPAs Regulating Agreement (RA). The department is pleading with the union to agree on new employment conditions, which will result in the restructured, sustainable, agile and technology savvy airline. Unfortunately, the RA that was signed in 1988 is a financial burden to the national airline as its primary objective is to preserve undeserved privileges accrued through unjust laws that preserved aviation careers to a small minority in this country. The department said that these privileges came with unaffordable benefits and a salary framework, which should be terminated. We agree with the BRPs and their insistence on addressing the RA, as it cannot become part of the new SAA, the department said, adding that the RA is unconstitutional and unlawful and should be terminated. Meanwhile, the lockout strategy undertaken by SAA is commendable considering the negative impact the RA has had on the airline's bottom line. It contributed to the lack of transformation at SAA due to the various clauses embedded in the agreement, which have curtailed the employment and promotion of Black, Coloured and Indian pilots to the high management structures of the airline. The RA has a succession of ownership provision, which means that notwithstanding any changes in ownership of SAA, the RA will remain in full operation. Because government is seeking a strategic equity partner (SEP) for SAA, the RA in its current form, combined with succession clauses, will no doubt make SAA less attractive to potential partners. The DPE said the process of restructuring the airline is imperative to ensure the meaningful transformation of the national airline. In an engagement with potential SEPs, DPE insists that national developmental objectives in aviation should receive priority in the new SAA. An appropriate balance to transformational objectives which are meant to right the historical discriminatory policies while also ensuring we retain strategic skills that achieve the countrys demographics and gender objectives are non-negotiables. Meanwhile, the department said it was important that all pilots cooperate in achieving these objectives. We urge the pilots to negotiate in good faith as all other workers in SAA have compromised immensely on their salaries and benefits to enable the launch of the new airline. The DBE thinks it is unfair and unjust for pilots to expect all other categories of the workers at SAA to reduce their salaries and benefits while they maintain the status quo and contribute to the high-cost structure and high salary bill, which the new airline cannot afford. The SAA pilots, which according to the International Air Transport Association, are the second most highly paid pilots in the world, are not the only pilots to undergo salary cuts as the rest of the global industry have experienced a reduction in salaries and benefits for the overall benefit of the airlines and industry to take off again. In addition, the department said the airline is encouraged to be steadfast in its journey to restructure the airline and all financial burdens that hamper the successful restructuring process should be terminated.

dec 17 2020 7:12pm
Public Enterprises welcomes Eskom's recovery of over R1.56bn

The Department of Public Enterprises (DPE) said it was pleased about the recovery of R1.56 billion from ABB South Africa back into Eskom's coffers. This comes after Eskom and the Special Investigating Unit (SIU) reached an agreement with ABB to pay back in full, money derived from an overpayment by the power utility for work at the Kusile power station that started in 2015. The department has described the agreement as a crucial milestone in the fight against corruption and State capture. It ensures that companies and individuals found to be complicit in or have benefited from malfeasance at State-owned entities are held accountable, the department added. Eskom has also instituted claims of about R3.8 billion to recuperate funds from former Eskom executives, former Board members, members of the Gupta family and their associates. The settlement agreement is a culmination of years of work by various parties, particularly after detailed investigations by the Special Investigations Tribunal in terms of the Presidential Proclamation R11 of 2018, initiated by the DPE. Meanwhile, according to the department, the SIU is currently executing proclamations into Denel, Transnet, Eskom and South african airways. The department is currently monitoring the implementation of consequence management arising from forensic reports at SOEs to ensure that those implicated in wrongdoings are brought to book. The department is also in the process of rolling out an SOE Risk and Integrity Framework geared towards restoring good governance in SOEs, the department said. According to the DPE, the framework is aimed at introducing stringent reforms about the management of conflicts of interest and integrity assessments of SOE employees and companies doing business with the SOEs. The department commends ABB for their disclosure and urges other companies, both local and international, to also come forward and make disclosures, as the SIU through the proclamation will track down all those culpable in the State capture project. The department has warned companies that are hiding illicit funds that the SIU and other international law enforcement agencies are working hard in returning stolen money to the fiscus. The recovery of the funds also confirms that there is a long list of entities and individuals, some who were at the executive level at SOEs that were involved in State capture and need to be pursued and monies recovered from their accounts. The department said it was confident this agreement is an indication that government is gradually turning the tide against State capture and corruption in the public and private sectors. The close partnership of the DPE, SOEs and law enforcement authorities will act as a deterrent and disincentive to anyone wanting to divert taxpayers money from being used properly in the efforts to eradicate poverty and inequality in our country.

dec 14 2020 7:08pm
McKinsey repays $44 million from tainted South Africa contracts

McKinsey & Co will repay R650 million ($44 million) for contracts it had with South african airways and state logistics company Transnet SOC Ltd, as it seeks to clear its name in the country.

dec 10 2020 6:43pm
business News : Mixed
McKinsey officials to appear at Zondo inquiry over Transnet, SAA R650m fees

The commission has reached an undertaking with McKinsey to pay back up to R650 million in fees it was paid by Transnet and the South african airways (SAA).

dec 10 2020 6:43pm
business News : Mixed
Interim SAA board announced

The Department of Public Enterprises (DPE) has announced an interim six-member South african airways (SAA) board as the airline prepares to relaunch in 2021. In a statement on Wednesday, the department said Geoff Qhena will chair the board, which also comprises Peter Tshisevhe, June Crawford, Bembe Zwane, Professor Edna van Harte and Nick Fadugba. The six, said DPE, are expected to restore proper governance and oversight of the airline during the implementation of a business rescue plan. As a shareholder on behalf of government, the DPE is delighted that these experienced professionals have agreed to join the board of SAA. Their combination of academic, financial, legal and aviation experience, with deep knowledge of global aviation and transportation trends, will bring a new perspective as the national carrier prepares to relaunch next year. The appointments, it said also enhances the independence and balance of the board, whilst continuing the process of transformation and renewal. Qhenais a qualified Chartered Account and a seasoned finance executive. He is a former Chief Executive Officer of the Industrial Development Corporation, where he was at the helm for 13 years. Tshisevheis a mergers and acquisitions lawyer with extensive experience in transaction advisory services. He is a director and partner at TGR Attorneys, a leading commercial law firm in Johannesburg. He is also a part-time lecturer at Wits University Law School. He has been retained from the previous board to provide continuity. Crawford, wholeads the Aviation Working Group of the South african Business Council, is a leading aviation and tourism leader and professional. She has been the Chief Executive Officer of the Board of Airlines Representatives of South Africa, director at the Air Traffic and Navigation Services and Deputy Chairperson of the Tourism Council of South Africa. Meanwhile, Zwaneis an aviation entrepreneur who is a part-owner in an aviation training solutions provider, a car rental business and an aviation logistics business. She is a former executive at Imperial Logistics and Equity Aviation. Professor Van Harteis an academic and former dean of the faculty of Military Science at the South african National Defence Force's military academy at Saldanha Bay and former Chairperson of the Defence Service Commission. She has served on various boards and commissions. Sixth board member Nick Fadugba,is an aviation professional with many years in consulting and promoting aviation development on the african continent, including leading the african Airlines Association. He has served as the Chairperson of african Business Aviation Association and has been involved in discussions on a Single african Air Transport Market (SAATM). In charting the way forward, the DPE said it believes that the key to solving the difficulties facing SAA is the finalisation and implementation of the business rescue process, followed by the start of a restructured airline; appointment of a leadership team; and securing a credible strategic equity partner who can introduce the required technical, financial, and operational expertise into the business. The new airline will be run in a professional and sustainable manner to support key economic sectors including tourism, trade with the continent, the local aeronautics industries and local service providers, said the department.

dec 9 2020 9:31pm
Stop undermining SAA business rescue process, public enterprises tells unions

The Department of Public Enterprises (DPE) has urged South african airways (SAA) labour unions to work with all stakeholders to finalize the business rescue process, including the full and final settlement of deferred salaries for employees.

dec 9 2020 9:31pm
business News : Mixed
DPE urges patience while seeking SAA solutions

The Department of Public Enterprises (DPE) has reiterated its commitment to finding solutions to the financial challenges that have seen South african airways (SAA) staff salaries unpaid for months. In a statement issued on Friday, the DPE expressed sympathy to the predicament but urged employees to be patient while the department works with stakeholders to find solutions. Government believes the key to solving the difficulties facing SAA is the finalisation of the business rescue process, the department said. That is why the department is working with Business Rescue Practitioners (BRPs) to find the best restructuring solutions for the airlines, including payment of salaries. Any updates of the finalisation of the BRP process, said the department, will be communicated as and when details are available. In the past, the DPE has worked with SAA management to restore good corporate governance and combat corruption at the national carrier. As one of the key focus areas, SAA has looked into major contracts relating to logistics, Information Technology, transactional advisory services, ground handling and security. The DPE said it was aware that the airline took disciplinary steps against the employees implicated. This resulted in the termination of employment for some senior and executive managers involved in misconduct. Thirteen other employees were found guilty of misconduct and were served with final written warnings while nine were dismissed and another four resigned. All stakeholders, employees and union members are encouraged to come forward and provide credible information to the department about instances of possible corruption, collusion, theft or fraud, that have occurred within the airline and amongst its service providers, the department said. Government, through Finance Minister Tito Mbowenis mid-term budget in October, committed to provide R10.5 billion to finalise the Business Rescue Plan and restructuring of SAA. The R10.5 billion was expected to pave the way for the finalisation of the business rescue process and restructuring of the airline through, among other things, the appointment of an Interim Board, an Interim Chief Executive Officer and Interim Chief Financial Officer. It was also expected to lead to the implementation of a Social Plan a training layoff scheme which will be facilitated by the Transport Education Training Authority in partnership with the Department of Labour and Employment. The funds would also assistance in the selection of a suitable Strategic Equity Partner to strengthen the launch of the new airline; settle the airlines legacy debt, including voluntary severance packages to employees. The R10.5 billionwould have also began preparations for the formation of a new customer-centric airline designed to be lean, technology capable, digitally modernised and agile to service all market segments.

dec 4 2020 6:13pm