A Bombardier Q400 of SA Express
Photo by: Hansueli Krapf/Creative Commons
Parliament’s Portfolio Committee on Public Enterprises has welcomed the turnaround strategy of State-owned regional carrier South African Express (SAX). This was reported in a media statement issued on Wednesday which followed a briefing of the Committee by the airline on its financial and operational situation.
“The Committee welcomed and congratulated SAX on its turnaround strategy and the austerity measures that have been introduced,” said the statement. “The Committee said it was happy to see a turnaround strategy with this trajectory and was looking forward to more presentations.”
With its turnaround strategy SAX seeks to cut operating costs, increase revenues, strengthen internal controls and corporate governance and modernise its fleet. In its briefing, SAX told the committee that the turnaround programme was beginning to produce results. After three quarters of losses during the 2014/2015 financial year, the fourth quarter had seen the airline achieve a profit.
Currently, SAX operates an all-Canadian fleet of 24 aircraft, comprising ten Bombardier CRJ200 and four Bombardier CRJ700 jets and ten Bombardier Q400 turboprops. “In its engagement, members of the Committee pleaded with SAX that proper procurement processes should be followed and implemented when acquisition of new generation aircraft got under way,” affirmed the statement.
The Committee also expressed concern at the fact that three South African State-owned airlines were in competition with each other. These are SAX, South African Airways (SAA) and low cost carrier Mango. (Mango is part of the SAA group; SAX is not.) “The Department of Public Enterprises said that the matter was being handled and that an inter-departmental task team had been set up to address the issue,” reported the statement.