16-Oct-2012 1:26 PM

SAA announces FY2011/12 results, establishes team to restore financial viability

South African Airways (SAA) reported (15-Oct-2012) an operating loss of ZAR1.3 billion (USD147.45 million), revenue of ZAR23.8 billion (USD2.7 billion) and irregular expenditure of ZAR128 million (USD14.5 million) for the year ended Mar-2012. The airline's revenue increased 5.3% from ZAR22.6 billion (USD2.56 billion) in the previous year. South Africa's Minister for Public Enterprises Malusi Gigaba said a task team was established to develop a strategy to make the airline financially viable and independent of Government support in the medium to long-term. The team will include SAA chairman Vuyisile Kona, SA Express CEO Inati Ntshanga and Mango CEO Nico Bezuidenhout and is scheduled to deliver a report by 15-Dec-2012. Mr Gigaba said the airline performed "below expectation" and the financial results reflected "weak internal controls." Mr Gigaba also said there were no plans to privatise the carrier. [more - original PR]