South African Airways

Background

South African Airways is one of the Worlds oldest Airlines

Founded on February 1, 1934 The Union of South Africa acquired all

assets and liabilities of a private airline, Union Airways, and absorbed it into a new national airline called South African Airways

Cont.

The airline is the only carrier flying non-stop from North America to South Africa

With daily service from New York and Atlanta

South African Airways now serves almost 700 destinations throughout the world

South African Airways now carries over 6.5 million passengers per year and serves 39 cities in 30 countries on six continents

SAA’s Current Fleet

SAA B747-400 (8) B747-300 (6) B747-200 (5) B747-SP (3) B767-200 (2) B737-800 (13) B737-200 (18)

SA Express Canadair

Regional Dehavilland

Dash 8 Series 300

SA Airlink Jetstream

41 Embraer

135 Microjet (37 seats)

Code Sharing / Feeder Airlines

SA Express SA Airlink Mozambique

Airlines British Midland Cathay Pacific Thai Airways SriLankan Airlines Ghana Airways

Delta Airlines El Al Emirates Lufthansa Quantas Varig Air Senegal Airlink Swaziland SAS

SA Express Airways Started service in April of 1994 Become one of the fastest growing

regional airlines in Africa Very important feeder airline for SAA Fleet has 6 Canadair Regional Jets

and 7 De Havilland Dash 300 turboprop aircraft

Serves at 12 destinations within Africa

SA Airlink Is SAA biggest feeder within Africa Has seen a 620% growth in the last 7

years Consists of 16, 29-seater Jetstream 41

aircraft Carries over 48,000 passengers a

month Performs 3,000 flights per month to 22

destinations in Africa

South African Airways Current Events

Feb 2002 (Africast) First Black SAA pilot appointed captain

Oct 2002 (News24) SAA set to purchase 49% of Air Tanzania

2002 (Airwise News) SAA to replace fleet of Boeing Aircraft with 41 Airbus aircraft

Cont.

Dec 2002 (flysaa.com) Code Sharing agreement signed with Mozambique Airlines (LAM).

Dec 2002 (SABC) SAA considers joining either OneWorld or Star Alliance

Jan 2003 (Reuters) SAA and Crown Aviation to purchase majority stake in Air Malawi

Cont.

Jan 2003 (iafrica) First indigenous black woman pilot employed by SAA (28 of 700 SAA pilots are black)

Jan 2003 (Reuters) SAA signs deal with Air Senegal

Jan 2003 (Sunday Independent) SAA currently evaluating new routes into Tokyo and Beijing

Financial SAA increased revenue 26.1% last year The large increase in revenue is due to

increased passenger revenue, cargo revenue, and third party maintenance work

Cargo saw an increase in revenue at 18.9% Technical third party revenue increased

54.6% Flight to New York is temporarily reduced

from 7 trips to 4 trips a week due to Sept 11

Leadership Team

E V P Tran s form ationN o lwaz i Q a ta

IT S a fe ty & S ecu rityG a lileo S acc

E V P S tra teg y & P lan n in gO yam a M ab an d la

E V P C u s tom erS ervice

A n ish a A rch ary

E V P G lob a lS a les & V oyag er

S iza M e im ela

E V P A llian cesA n d ile M ab ize la

E V P & G M C arg oTle li M akh e th a

C om m erc ia l

E V P M arke tin g & C om m u n ica tion sV ic to r N os i

E V P L eg a lH ap p y M oson d o

E V P & C F O F in an ceR ich ard F orson

E V P Tech n ica lV in cen t R aseroka

E V P H u m an R esou rcesV u s i D lam in i

P res id en t & C E OA n d re V iljoen

Company Structure CEO’s Pyramid 4 C’s

Culture Customers Cost Competition

Move towards Privatization Swiss Air sold their 20% back transnet

which halted the move towards privatization

Cont. Shake-up of leadership in last 5 years Coleman Andrews took over CEO and

made SAA profitable Andre became CEO in April 1st, 2001

Been restructuring ever since Financial Turnaround with the

combined efforts of Coleman & Andre 62.6 million dollar loss in 1997 43.6 million profit by 2000

Operations

Passenger Over 6.5 million passengers a year Services 39 cities in 30 countries and

over 600 destinations Hosts the longest non-stop flight in the

world Atlanta to Johannesburg covers 8,739 miles

in 15 hours and 25 minutes

Cont. Cargo

Use space in passenger aircraft Use of B737 freighters for domestic

market in South Africa Renovated and upgraded facilities in

Johannesburg, Cape Town, Durban and Port Elizabeth to ensure the best service

Use of bar-coding system and Rapid Application Development System (SAFRON)

Customer Loyalty Program

Cont. 3rd Party Relations

SAA technician Service maintenance 47 major airlines

Cadet Pilot Training Program Established in 1994 Successfully put 43 young South Africans

through program out of 4000 applicants 2 years program