SAA boss explains how he intends to sustain growth path

ALAN PEAT THE NATIONAL airline SAA has turned a massive loss in the 2003/04 financial year to a sound profit for 2004/05. According to CEO Dr Khaya Ngqula, the airline made a net profit of
R966-million compared to the
R 8.6-billion loss of last year; increased revenue by 6.8% and only had cost increases of 1.9%; and intended to repay R1.6-bn to parent company, Transnet. Ngqula highlighted a number of key priorities necessary to sustain this growth path. Declining yields locally and the expansion of low cost carriers see SAA reviewing its business model for the short-haul network. “Tackling competition in the domestic market is key in maintaining our market share in the face of these challenges,” he said. Also, as a direct result of the declining yields on long-haul, SAA is also revisiting its long-haul fleet strategy. “An aggressive implementation of the Africa strategy will also receive a more focused attention,” Ngqula added, “given the projected growth of this market. “With a solid fleet and route network we will be able to take on any international competition.” The airline is also looking to major advantages in its full integration into the currently 16-member Star Alliance group of airlines – expected to be formalised within months.