/ 1 January 2002

Africa’s biggest jetliner deal underway

South African Airways (SAA) has placed Africa’s largest single jetliner order and has formalised the acquisition of 41 new Airbus aircraft which will be used to modernise its entire fleet.

South Africa’s Minister of Public Enterprises, Jeff Radebe, SAA President and CEO, Andre Viljoen and Airbus President and CEO, Noel Forgeard, signed the purchase agreement at Airbus headquarters in

Toulouse, France.

The transaction is the biggest civil commercial procurement order to be undertaken in the history of South Africa.

Deliveries of the 41 new aircraft will commence later this year and continue until 2010.

Of the 41 new aircraft, 38 are orders placed on Airbus and three will be acquired through international lease finance corporations.

Airbus will provide pilot, cabin crew

and technical staff training.

”This purchase sends a clear message that SAA is a key player in the South African economy. It also demonstrates SAA’s support for the principles of the New Partnership of African Development (NEPAD), which has a broader economic and ideological dimension to

SAA’s growth in Africa,” said Viljoen.

”Through our new fleet, SAA will be able to

provide reliable and affordable access to other parts of Africa where rail and road infrastructure has proved to be lacking,” said Viljoen.

”With this new fleet, we will be able to significantly reduce operating costs and increase our efficiencies, through faster turn-around times and optimal utilisation of our crews.

”The high degree of commonality inherent across our entire new Airbus fleet, will enable us to closely match capacity with demand. This will result in improved yields,” Viljoen said.

The new Airbuses will enable SAA to carry containerised Cargo on domestic, regional and long-haul services. As a result, the aircraft will be a vital tool in helping SAA to stimulate increased

export revenues for the South African economy.

The new aircraft will also incorporate the latest security enhancements, including the recently certified reinforced cockpit doors.

Viljoen said the new fleet with its state of the art product and superior cabin comfort, would attract more travellers thereby boosting tourism to the country. –SAPA