Whats happening at South African Airways this month

SAAs 90-DAY
ACTION PLAN
SAAs 90-Day Action Plan, a road map designed to return SAA to
full implementation of its Long-Term Turnaround Strategy (LTTS), is on
target in terms of roll-out and active engagement across all levels of
the company.
Tasks already completed include a review of the SAA long-haul
international network, as well as a re-evaluation of eet requirements.
In December the airline announced its new route between
Johannesburg and Abu Dhabi, along with a deeper commercial
relationship with Etihad through code-share network extensions and
upped frequencies to key African destinations. Network optimisation
is key and we expect to make more announcements regarding
commercial efciencies in the near future, says Acting SAA CEO,
Nico Bezuidenhout.
The SAA War Cabinet a small group of key senior executives
in the business plays a critical role in the implementation process
of the plan, with close monitoring by the newly constituted board. Its
twice-weekly meeting cycle ensures implementation feedback from
across the business, while a weekly feedback session reports to a
National Treasury Technical Team. The interventions managed by the
War Cabinet are directly linked to business deliverables to steer the
company back onto a path of sustainability, as outlined in the LTTS.
SAA is serious about rebuilding commercial sustainability and well
achieve our objectives. SAA means business, says Bezuidenhout.
As a consequence of the on-cue implementation of the 90-Day
Action Plan, the LTTS is re-energised and the business is receiving full
support from its shareholder and close guidance from its board of
directors. The plan comprises six main areas of focus:

Immediately addressing the airlines liquidity position,

ongoing solvency and medium-term funding requirements.
The interventions include:
a) Addressing the solvency and liquidity of the business and
engaging with its shareholder and other stakeholders to ensure
going-concern status is maintained.

b) Immediately reviewing the SAA network to stem losses.

c) Focusing on working capital optimisation.
d) Renewing cost compression efforts and expediting LTTS
implementation that will immediately impact the income and cash
ow statements.

Immediate investigation of options to future-fund the business:

The initiation of a process to investigate and determine options
for future-funding the business.

Substantial focus on governance defects and remedies:

Immediate investigation and correction of any governance
failures within the business. This includes a wide-ranging review of
processes and command and control structures within SAA, with
particular reference to the implementation of the LTTS.

Legal and high-level governance: An immediate review of all

contractual burdens and governance implications or defects
within the legal framework of the company. This includes the review
of onerous agreements, correction thereof and other matters that
impact the framing of remedial activity, as well as the re-establishment
of foundation-laying for LTTS implementation within a tight
governance environment.

Re-organisation and optimisation of assets: Examination of all

assets in the business and re-organisation thereof in terms of the
requirements of the LTTS. Further optimisation will occur in line with
the approved interventions.

Improved communication: SAA will re-engineer its internal

and external communication efforts to effectively communicate
with all direct and indirect stakeholders and South African citizens,
particularly with reference to the implementation of the 90-Day Action
Plan, as well as the LTTS.

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6

SAA INNOVATION
The innovative tablet shelf feature on
the Business Class seats of the A320,
which serves the Mauritius route, made
the 2014 list of the top 10 airline
innovations aimed at improving the travel
experience. The back shell has a small
shelf in which a passengers tablet can be
slotted to create a removable IFE solution,
with a USB power point that keeps the
28 Sawubona March 2015

device powered during the ight.

Seating in Economy Class offers a pitch
of 31, with shared USB and PC power
points and an adjustable headrest. Extra
living space is offered by the slimline
seats, which have been upholstered in
leather. Colours used are dark beige and
anthracite grey, with touches of red and
blue from our corporate colours.