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South African Airways

South African Airways. Background. South African Airways is one of the Worlds oldest Airlines Founded on February 1, 1934

quentin-lott
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South African Airways

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  1. South African Airways

  2. Background • South African Airways is one of the Worlds oldest Airlines • Founded on February 1, 1934 • The Union of South Africa acquired all assets and liabilities of a private airline, Union Airways, and absorbed it into a new national airline called South African Airways

  3. Cont. • The airline is the only carrier flying non-stop from North America to South Africa • With daily service from New York and Atlanta • South African Airways now serves almost 700 destinations throughout the world • South African Airways now carries over 6.5 million passengers per year and serves 39 cities in 30 countries on six continents

  4. SAA’s Current Fleet SAA • B747-400 (8) • B747-300 (6) • B747-200 (5) • B747-SP (3) • B767-200 (2) • B737-800 (13) • B737-200 (18) SA Express • Canadair Regional • Dehavilland Dash 8 Series 300 SA Airlink • Jetstream 41 • Embraer 135 Microjet (37 seats)

  5. Code Sharing / Feeder Airlines • SA Express • SA Airlink • Mozambique Airlines • British Midland • Cathay Pacific • Thai Airways • SriLankan Airlines • Ghana Airways • Delta Airlines • El Al • Emirates • Lufthansa • Quantas • Varig • Air Senegal • Airlink Swaziland • SAS

  6. SA Express Airways • Started service in April of 1994 • Become one of the fastest growing regional airlines in Africa • Very important feeder airline for SAA • Fleet has 6 Canadair Regional Jets and 7 De Havilland Dash 300 turboprop aircraft • Serves at 12 destinations within Africa

  7. SA Airlink • Is SAA biggest feeder within Africa • Has seen a 620% growth in the last 7 years • Consists of 16, 29-seater Jetstream 41 aircraft • Carries over 48,000 passengers a month • Performs 3,000 flights per month to 22 destinations in Africa

  8. South African Airways Current Events • Feb 2002 (Africast) First Black SAA pilot appointed captain • Oct 2002 (News24) SAA set to purchase 49% of Air Tanzania • 2002 (Airwise News) SAA to replace fleet of Boeing Aircraft with 41 Airbus aircraft

  9. Cont. • Dec 2002 (flysaa.com) Code Sharing agreement signed with Mozambique Airlines (LAM). • Dec 2002 (SABC) SAA considers joining either OneWorld or Star Alliance • Jan 2003 (Reuters) SAA and Crown Aviation to purchase majority stake in Air Malawi

  10. Cont. • Jan 2003 (iafrica) First indigenous black woman pilot employed by SAA (28 of 700 SAA pilots are black) • Jan 2003 (Reuters) SAA signs deal with Air Senegal • Jan 2003 (Sunday Independent) SAA currently evaluating new routes into Tokyo and Beijing

  11. Financial • SAA increased revenue 26.1% last year • The large increase in revenue is due to increased passenger revenue, cargo revenue, and third party maintenance work • Cargo saw an increase in revenue at 18.9% • Technical third party revenue increased 54.6% • Flight to New York is temporarily reduced from 7 trips to 4 trips a week due to Sept 11

  12. Leadership Team

  13. Company Structure • CEO’s Pyramid • 4 C’s • Culture • Customers • Cost • Competition • Move towards Privatization • Swiss Air sold their 20% back transnet which halted the move towards privatization

  14. Cont. • Shake-up of leadership in last 5 years • Coleman Andrews took over CEO and made SAA profitable • Andre became CEO in April 1st, 2001 • Been restructuring ever since • Financial Turnaround with the combined efforts of Coleman & Andre • 62.6 million dollar loss in 1997 • 43.6 million profit by 2000

  15. Operations • Passenger • Over 6.5 million passengers a year • Services 39 cities in 30 countries and over 600 destinations • Hosts the longest non-stop flight in the world • Atlanta to Johannesburg covers 8,739 miles in 15 hours and 25 minutes

  16. Cont. • Cargo • Use space in passenger aircraft • Use of B737 freighters for domestic market in South Africa • Renovated and upgraded facilities in Johannesburg, Cape Town, Durban and Port Elizabeth to ensure the best service • Use of bar-coding system and Rapid Application Development System (SAFRON) • Customer Loyalty Program

  17. Cont. • 3rd Party Relations • SAA technician • Service maintenance 47 major airlines • Cadet Pilot Training Program • Established in 1994 • Successfully put 43 young South Africans through program out of 4000 applicants • 2 years program

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