SAA soaring again – and making a profit!

After several difficult years, state-owned airline South African Airways (SAA) is now contributing economic value, Transport Minister Barbara Creecy said during the departmental Budget Vote in Parliament on Wednesday morning.

SAA endured allegations of fraud and corruption during the State Capture era, went into business rescue, and was grounded. Still, it has since recovered and resumed operating domestic, continental, and international flights.

‘Renewed profitability’

“With unencumbered assets and renewed profitability, SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade,” Creecy said.

Furthermore, the airline is now contributing to the country’s Gross Domestic Product (GDP).

“According to [an Oxford Economics Africa] study, SAA contributed R9.1 billion to South Africa’s GDP in 2023/24, a figure projected to more than triple to R32.6 billion by 2029/2030. Over the same period, the airline’s operations are expected to support 86 700 jobs, up from the current 25 000, demonstrating its growing role as a national employer and economic catalyst.

“The airline has concluded three out of four outstanding audits and reported a profit of R252 million for the 2022/23 financial year for the first time since 2012. Now operating independently and no longer reliant on government guarantees, SAA is self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring,” the Minister highlighted.

Strengthening ACSA

Creecy revealed that the Airports Company South Africa (ACSA) has been allocated some R21.7 billion for infrastructure development.

“[This is] in order to meet our target of moving 42 million passengers per year and increasing air freight handling through the ACSA network of airports. This will improve facilities for passenger safety and comfort over the medium-term and build a new freight terminal at OR Tambo International Airport.

“In addition, we are fast tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of facilities and technologies at each of our airports to improve both security of passengers and cargo, as well as convenience of airport users,” she said.

On the roads

Transport Minister Barbara Creecy told Parliament that the department remains concerned about the state of South Africa’s roads. She said the South African National Roads Agency (SANRAL) had taken over about 3,099 kilometres of provincial roads in the past year.

“Over the period of the MTDP [Medium-Term Development Plan] and beyond, SANRAL has reprioritised within the existing maintenance and capital allocated funding so that these roads are serviced through the Route Road Maintenance Programme,” she said.

Creecy also revealed that the driver’s licence printing machine is now back in operation.

“The old card machine is currently fixed and we are hard at work to clear out the printing backlog of licence cards. To ensure we have a backup solution, we have signed a MOU with the Government Printing Works. We expect that within three months, this backup solution will be able to print driver’s licence cards,” she said.