The struggles of strike-hit SAA

South African Airways (SAA) says its future hangs in the balance after its workers went on strike to demand higher wages and protest planned job cuts which forced the state-owned carrier to cancel all its flights.

SAA, which has not turned a profit since 2011 and is reliant on state bailouts, says the walkout will cost it R50 million per day.

Here is a brief history of the state-run airline and details about its operations.

History

* 1934: Began operations after the government took over assets and liabilities of Union Airways and renamed it South African Airways.

* 1945: SAA introduced its first inter-continental service from Johannesburg with stops in Nairobi, Khartoum, Cairo, Castel Benito (Tripoli) and Bournemouth. The trip took 34 hours.

* 1986: Due to economic sanctions linked to apartheid, flights to New York were suspended in November 1986. The United States also withdrew from its landing rights in South Africa.

* 1997: SAA announced a new corporate identity with colours of South Africa’s new rainbow national flag on its aircraft tail.

* 2000s: SAA entered into Africa’s biggest jetliner deal by placing an order for 41 new Airbus aircraft for $3.5 billion.

* June 2019: CEO Vuyani Jarana resigns saying his turnaround strategy for the loss-making airline was being undermined by a lack of state funding and too much bureaucracy.

* September 2019: SAA says a government cash injection of R5.5 billion approved for the 2019/20 financial year is expected at the end of the month but it still needs more money.

* October 2019: SAA is open to outside investment and in talks with a number of potential partners, President Cyril Ramaphosa says.

Fleet size and suppliers

* The SAA fleet comprises more than 54 aircraft, with Airbus and Boeing planes. Its partner airlines include Mango Airline, South African Express, Airlink and Codeshare Partners.

Financials

* Reported revenue of R30.7 billion in the 2016/17 financial year, compared to R30 billion a year earlier, with a loss of R5.6 billion. These are the most recent figures published.

Debt

SAA has debt of about R12.7 billion.

Number of workers

* SAA, which lost its place as the continent’s biggest airline in the last decade, employs 5 752 employees.

Hub

* Johannesburg

Passengers

* Carried 6.8 million passengers in 2016/2017.

Sources:

Company website https://www.flysaa.com/about-us/leading-carrier, Reuters.