Ending the ‘haemorrhaging’ of Transnet and South African Airways (SAA) has been achieved, Public Enterprises Minister Alec Erwin told members of Parliament on Friday.
Speaking in his Budget vote, Erwin said: “I believe that we have achieved these objectives and are now moving beyond to greater efficiency.”
All credit “must go to the new boards and the new chief executive officers (CEOs) and their management teams, most of whom you see here today,” said Erwin.
Transnet CEO Maria Ramos and SAA CEO Khaya Ngqula were present in the public gallery.
“We cannot turn such large corporations around in a single year but we are definitely now facing the right direction,” Erwin said.
Referring to SAA, Erwin stated that in the previous two years, the airline went through “a tumultuous period both in its financial position and operations”.
Professor Jakes Gerwel, chairperson of the board, and the board were charged with “stabilising the situation and leading the turn-around in August last year”.
“Mr Ngqula was given the challenge of becoming CEO. I am very pleased to say that their hard work has SAA flying firmly on the right compass bearing.
“An exciting development was the attention now paid to Africa. These are profitable routes and currently Africa makes up 16% of SAA revenue,” said Erwin.
Another high-profile growth area for SAA was North America. “Effective July 1, SAA will be increasing its frequencies with an additional three flights per week first and business class to Washington. This will give us three entry points into the United States.”
With regard to Transnet, he said “some 13 non-core entities with an estimated combined asset value of R7,7-billion would be disposed of over 18 months”.
“This will constitute a major boost to black economic empowerment,” he said. – I-Net Bridge