OWN CORRESPONDENT, Johannesburg | Saturday
SOUTH African Airways (SAA) head Coleman Andrews will step down on April 1, over a year before his contract ends, in order to avoid a leadership change in the midst of privatisation, a government representative said on Friday.
”It simply is impossible to do a listing in the middle of a leadership transition. We should rather make the transition now. The timing is right,” Andrews was quoted as saying.
Andre Viljoen, SAA’s current chief financial officer and executive vice-president, will take over as CEO on April 1 as Andrews leaves 14 months ahead of schedule.
Mafika Mkwanazi, managing director of transport utility Transnet, said Coleman would remain at the national carrier to advise on strategy, product development and leadership supply.
SAA is 20% owned by Swiss-based SAirGroup.
The government is preparing for a 2002 initial public offering in the second half of next year. Industry analysts expect it to fetch close to three billion rand through the listing of a 20-30% stake.
”The decision to appoint Viljoen…is in anticipation of SAA’s IPO,” Mkwanazi said in a statement.
SAA had been hit by years of losses until 1998 when it implemented a new strategy that helped it to raise its profits in the year to March 31, 2000, to R350m ($44.47m) from R51m in the previous year. – Reuters