SAA makes surprise profit

Old Sep 13, 17, 8:34 am
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SAA makes surprise profit

Against a projected loss in the 2nd quarter SAA made a surprise profit:

SAA makes profit in July, set to cut flights by 23%

SAA made a surprise profit in July of R19m when it was budgeted to make a R207m loss. This after it posted a R1.354bn loss in the first three months of 2017. The loss had now declined to R1.335bn.

SAA - in a presentation to be presented to the standing committee of finance on Wednesday - revealed that it will cut flights by 23% by December 2017.

By cutting five aircraft from its fleet by December, the airline hopes to save costs to turn the embattled airline around. It has already removed one aircraft from it routes.

This will see a 37% reduction in domestic flights, an 11% reduction in regional flights and a 4% reduction in international flights.

SAA also revealed that OR Tambo saw an 18% decline in traffic as more passengers flew directly to Cape Town and Durban.
http://www.fin24.com/Economy/live-ca...chair-20170913
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Old Sep 13, 17, 9:54 am
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Thanks for posting about that, skywardhunter. Lots of interesting stuff in that article. Cutting domestic flights by more than 1/3! Wow!!

One of the things I am concerned about was this:
Another issue was SAA’s countless offices around the world that don’t seem to serve a purpose. One in Miami is used as a call centre. “People are moving out of America for call centres, he said. “Why are we exporting out jobs to Miami?”
The Miami office is always helpful and eager to answer queries of people who post here. It may be the only responsive customer service team left in SAA - the ZA operations are dreadful.
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Old Sep 13, 17, 10:47 am
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Originally Posted by Cheetah_SA View Post
Thanks for posting about that, skywardhunter. Lots of interesting stuff in that article. Cutting domestic flights by more than 1/3! Wow!!

One of the things I am concerned about was this:
The Miami office is always helpful and eager to answer queries of people who post here. It may be the only responsive customer service team left in SAA - the ZA operations are dreadful.
The prudent thing to do financially is to close all overseas call centres and simply have local numbers in all countries SAA operates in that route to the SA one.
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Old Sep 13, 17, 12:09 pm
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Originally Posted by skywardhunter View Post
The prudent thing to do financially is to close all overseas call centres and simply have local numbers in all countries SAA operates in that route to the SA one.
Couldn't disagree more, for the reasons Cheetah_SA stated. Plus, the US based reps are EXPERTS (in my opinion) with handling the multiple carriers feeding into SA US-to-SA based routes, FF redemptions, etc. They have never let me down and, as Cheetah_SA alludes to, do far better that SA based reps.
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Old Sep 13, 17, 3:56 pm
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Originally Posted by jsnydcsa View Post
Couldn't disagree more, for the reasons Cheetah_SA stated. Plus, the US based reps are EXPERTS (in my opinion) with handling the multiple carriers feeding into SA US-to-SA based routes, FF redemptions, etc. They have never let me down and, as Cheetah_SA alludes to, do far better that SA based reps.
I don't disagree, I don't really have any experience. But financially it makes sense, as well as obviously investing in training SA call centre agents. SAA's revenue and network are heavily Southern Africa based, with a fraction originating in North America, perhaps less than 10%, so an entire call centre there seems like overkill.
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Old Sep 14, 17, 12:19 am
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Originally Posted by Cheetah_SA View Post
Thanks for posting about that, skywardhunter. Lots of interesting stuff in that article. Cutting domestic flights by more than 1/3! Wow!!
With more and more regional/int'l flights landing directly in airports other than JNB, and more LCC flights, it only makes sense.
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Old Sep 14, 17, 1:25 am
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Originally Posted by Ditto View Post
With more and more regional/int'l flights landing directly in airports other than JNB, and more LCC flights, it only makes sense.
Agreed. But one would have expected the penny to have dropped ages ago and for this to happen gradually over time. It seems no one wanted to make the hard decisions* - but now it has become so glaringly obvious that they have to wield the axe ruthlessly.

Expect labour troubles ahead.


*And of course the easiest way to skim off bribes and other fraudulent payments is when procuring multi-billion rand items. Much harder to do when you are divesting. (Although that statement about selling obsolete stock for a tenth of its value does have a certain smell to it...)
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Old Sep 19, 17, 4:41 pm
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Originally Posted by skywardhunter View Post
I don't disagree, I don't really have any experience. But financially it makes sense, as well as obviously investing in training SA call centre agents. SAA's revenue and network are heavily Southern Africa based, with a fraction originating in North America, perhaps less than 10%, so an entire call centre there seems like overkill.
North America is not small fraction for SAA. It is my understanding that North America is SAA's second largest revenue producing region (outside of Africa) and generates about 18% of the airline's overall revenue. Over half the passengers on the New York and Washington, DC routes are originating in the U.S.
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