The board of SA’s flag-carrier airline SAA has confirmed that it has accepted the resignation of its CEO
SAA board chairman JB Magwaza suggests the implementation of the plan will carry on, saying that “the airline will continue to implement actions to reduce SAA’s cost structure and make the airline more competitive domestically and globally”. However, the prospects of the full plan being delivered are now seriously in question, particularly given Jarana’s explanations for what went wrong.
“We have not been able to obtain any further funding commitment from government making it difficult to focus on the execution of the strategy. I spend most of my time dealing with liquidity and solvency issues. Lack of commitment to fund SAA, is systematically undermining the implementation of the strategy making it increasingly difficult to succeed.”
Jarana’s resignation lands a hot potato in the lap of the newly formed government of President Cyril Ramaphosa, and it doesn’t help that reappointed Finance Minister Tito Mboweni has explicitly said that he thought government should not fund an airline, arguing it is effectively a government subsidy for the rich.
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The bet that Jarana can fix SAA is still on: Free Market FoundationLouw said in June 2018 that he was willing to wager R100‚000 that VuyaniJarana's three-year turnaround plan would not work and that by March 31 2021, Jarana’s stated timeframe, the airline would still not be profitable. Hats off to Jarana for confidence in his capabilities, that he took up Louw on the wager. The upside now is that charity or charities are about to receive a helping hand - thanks to his audacity.
Source: TimesLIVE - 🏆 28. / 59 Read more »
Vuyani Jarana's plan to fix SAA was still bound to crash: Free Market FoundationFree Market Foundation executive director Leon Louw was adamant on Monday that a bet on a turnaround plan for SAA - under CEO Vuyani Jarana who resigned at the weekend - not working was still in place. For some reason I think given enough time Sibongile Sambo could help this SAA company as a CEO. Before any repairs can be done the damage and affected area's must be removed . Face facts, our S.O.E.'S are well and truly screwed. S.A. is f...ked. This will end up a GHOST COUNTRY.
Source: SowetanLIVE - 🏆 13. / 63 Read more »