http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 08, 2011

SAA boosts profit 77% to R782m

Back
ABUJA|Aviation|Beijing|BUJUMBURA|Kigali|Africa|Public Enterprises|South African Airways|Africa|Burundi|Ireland|Nigeria|Rwanda|South Africa|Airline|Energy|Higher Energy Costs|Oil Price|State-owned Airline|Cheryl Carolus|Malusi Gigaba|Siza Mzimela|A330|Airbus A330|The 2010 FIFA World Cup
Aviation||Africa||Africa||Energy||||
abuja|aviation|beijing|bujumbura|kigali|africa-company|public-enterprises|south-african-airways|africa|burundi|ireland|nigeria|rwanda|south-africa|airline|energy|higher-energy-costs|oil-price|stateowned-airline|cheryl-carolus|malusi-gigaba|siza-mzimela|a330|airbus-a330|the-2010-fifa-world-cup
© Reuse this



State-owned airline South African Airways (SAA) increased its profit to R782-million in the 2010/11 financial year, from R442-million in the previous year, despite a challenging and difficult environment for airlines, CEO Siza Mzimela said on Thursday.

Group operating profit increased by 66% to R807-million, and turnover, which largely comprises passenger revenue, climbed to R18-billion from R16.9-billion.

Capital and reserves were brought up to R1.64-billion from last year’s restated R992-million and R618-million in cash was generated. Net retained earnings of R681-million exceeded the target of R201-million.

SAA said it achieved these results despite the fact that the market was still recovering from the effects of the global financial crisis, as well as the fluctuating Brent crude price.

A 25% increase in the oil price contributed to the airline’s higher energy costs, which rose to R6-billion for the period under review. However, operating costs rose by only 5% to R21.8-billion, despite the significantly higher fuel costs.

“Despite the great success of the 2010 FIFA World Cup, the expectations for the year did not translate into the increased passenger demand expected,” Mzimela said.

Passenger revenue growth increased by 8% to R15.8-billion, with the airline’s total income at R22.8-billion, up 3% from the previous financial year.

SAA has also taken delivery of five of its six new Airbus A330-200s, which it is leasing from Aircastle of Ireland.

Mzimela said that SAA would be working on securing its own financing for its fleet programme, without government support.

The delivery of the A330-200 aircraft forms a significant part of SAA’s route expansion plans. 

The expansion plans also translates into a new route to Beijing expected to be operational from November 15.

Mzimela said she hoped that at some point it would turn into a daily route and address the demand from Southern Africa.

The CEO also said that Southern Africa remained a strong area for the airline, which is focused on increasing its footprint on the African continent.

In line with this, SAA will be introducing new routes into the continent, including to Kigali, in Rwanda, Abuja, in Nigeria and Bujumbura, in Burundi.

Public Enterprises Minister Malusi Gigaba said it was key for government to ensure that SAA received the necessary support to pursue bilateral cooperation in the aviation sector by engaging with African countries to “open their skies to all South African airlines”.

“The airline has increased its network and there has been a concerted effort to increase its African footprint.

“Entry into Africa by South Africa carriers continues to be a challenge and yet it is vital in order to advance regional integration, as well as South Africa’s political and economic agenda,” he said.

Gigaba also said it was critical for SAA to sustain its positive performance and strive to advance the State’s policy objectives, as outlined in the tourism growth strategy and the New Growth Path (NGP).

Mzimela added that SAA, as a State-owned enterprise, had an obligation to support the NGP. “Our new growth strategy strongly positions the group to more strongly support State policy initiatives.”

Chairperson Cheryl Carolus added that SAA’s financial position and the state of the business continue to show significant improvement, and that the financial performance was an encouraging response to the strategic objective to become a fully sustainable business over the next three years, and positioning SAA to compete successfully in the global aviation market in ten years.

“This effectively positions the SAA group for growth, enabling us to fulfill our strategic role within the continent,” she added.

However, the outlook for the aviation industry, as with other industries in the global arena, pointed to more difficult operating conditions. “It remains concerning to note the economic growth rate in the markets we operate in, and the early warning signs of a possible double-dip recession would impact business,” Mzimela said.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Aviation News
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Ivory Coast's national carrier Air Cote d'Ivoire is in discussions with Airbus and Canada's Bombardier Inc to renew its existing fleet and provide new aircraft for a planned expansion, the company's chief executive said. The company, which launched last year,...
Article contains comments
JSE-listed Basil Read on Tuesday noted that it was being featured in a new series of UK postage stamps acknowledging the construction of a new airport on the island of St Helena, a British territory 2 300 km west of Walvis Bay, Namibia. Basil Read St Helena Airport...
More
 
 
Latest News
A former employee of the Manufacturing, Engineering and Related Services Sector Education and Training Authority (Merseta) and his accomplice have each been sentenced to 20 years imprisonment after being found guilty of fraud by the Specialised Commercial Court, in...
The Richards Bay Bulk Terminal, in KwaZulu-Natal, loaded 1.49-million tons of cargo in September, exceeding its monthly target of 1.32-million tons, Transnet Port Terminals (TPT) said on Monday. TPT said the reaching of vessel targets ahead of deadline created...
Judge Dennis Davis
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted on Monday that recommendations were being considered to “detect and...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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