http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.88Change: -0.10
R/$ = 15.88Change: -0.04
Au 1237.82 $/ozChange: 0.47
Pt 955.50 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Oct 17, 2012

Govt must support SAA, says Loubser

Back
Aircraft|Eskom|Mango Airlines|Public Enterprises|South African Airways|Transnet|Wits University|Airline|Airline Industry|Cheryl Carolus|Russell Loubser|Wolf Meyer
Aircraft|Eskom|Transnet|||
aircraft|eskom|mango-airlines|public-enterprises|south-african-airways|transnet|wits-university-facility|airline|airline-industry|cheryl-carolus|russell-loubser|wolf-meyer



If government wants to own an airline it needs to support it financially, said Russell Loubser, former JSE CEO and South African Airways (SAA) board member, on Wednesday."If you don't like the airline industry why [have] you got three?" he asked of government.

Government, through the Department of Public Enterprises, is the sole shareholder in SAA and SA Express. SAA fully owns Mango Airlines.

"But seeing you've got three, why are you not supporting them 100% in every possible way, morally, and especially financially?"

Loubser was addressing students at Wits University in Johannesburg.

He was among the SAA board members – including chairwoman Cheryl Carolus – who unexpectedly quit last month before the annual general meeting when their term was due to end.

The AGM was held on Monday at which it reported a R1.3-billion operating loss for the year ended March 31.

SAA CFO Wolf Meyer said the airline's losses over the past decade amounted to R14.7-billion.

In early October, the National Treasury announced that SAA had been given a R5-billion government guarantee to recapitalise. This would enable it to borrow from financial markets and buy new aircraft.

However, Laubser said this guarantee would not help the struggling airline.

"Will a R5-billion guarantee help? No. A guarantee's not cash. It [SAA] has never been capitalised properly."

He said SAA was "an extremely difficult business" with a turnover of around R23-billion but only a two percent profit margin.

"So in a good year when nothing goes wrong, [SAA would make] round about R400-million profit. That's what the JSE made with a billion rand turnover."

He said a third of input costs were fuel – about R8-billion – and if the price of oil spikes from R90 a barrel to R115, that amounts to fuel costs of around R800-million.

"And double your margin is gone."

Loubser said it was easy for other airline companies to compete with SAA, unlike other parastatals, such as Eskom or Transnet.

"If you're not properly capitalised... you do nothing wrong but the oil price turns against you, and you've got no hope," he said.

Edited by: Sapa

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
The Competition Tribunal on Friday gave a conditional go-ahead for mobile operators Cell C, MTN and Vodacom to buy out their respective subscriber bases, as South Africa’s last independent service provider Altech Autopage calls it a day. The Allied Electronics...
The drought in Southern Africa could become one of the worst on record should the current below-normal rainfall continue, the United Nations (UN) World Food Programme said this week. The El Niño conditions presently being experienced in the region had resulted in a...
Kelibone Masiyane has been appointed the new MD of PPC Zimbabwe, succeeding Njombo Lekula, who had recently been redeployed as MD of PPC’s international operations. Masiyane would be supported by new PPC commercial director Iain Sheasby and new PPC GM of finance...
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
 
 
 
 
 
This Week's Magazine
WIDENING FLEXIBILITY The trailers have a 3-m-wide (2-file) and 4.3-m-wide (2-file) configuration
Lifting, transporting, installing and ballasting solutions provider Ale has expanded its global fleet of trailers and invested in the latest range of widening trailers that can be mechanically widened from 3 m to the desired width for any project. Ale ordered 48 axle...
The market for the BMW 7 Series in South Africa differs quite significantly from the rest of the world. China, the US and the Middle East almost exclusively buy the long-wheel-base version, using the German manufacturer’s luxury high-end sedan as a chaffeur-driven...
January new-vehicle sales fell by 6.9%, to 48 615 units, compared with the same month last year. Statistics released by the Department of Trade and Industry show that the domestic new passenger-car market declined by 6.1%, to 34 936 units, compared with 12 months ago.
Information technology (IT) equipment and infrastructure multinational Dell is providing open infrastructure systems for clients so that they can use any systems, including innovative new systems, that suit their business needs, says Dell Europe, Middle East and...
South Africa’s State-owned defence industrial group, Denel, has set up another international partnership, based in Hong Kong. This new subsidiary is Denel Asia and it is a joint venture (JV) with South African private sector company VR Laser.
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149