ARC NEWS
​SAA advertises for new leadership after privatisation bid fails
April 10, 2024
South African Airways (SAA) is advertising for a new permanent chief executive and four other senior executives, following its failed acquisition by the Takatso consortium last month. The airline says that, following the failure of the transaction, “the board has deemed it necessary to have a properly constituted and permanent executive team to pilot the airline’s strategic plan into the future.” The company’s interim chairman, Derek Hanekom, describes this is as a “positive and decisive” step that will provide stability to the company as it fleshes out its plans for growth. “The interim executive management team has admirably rebuilt the airline as it emerged out of business rescue with the understanding that their posts would remain interim positions until a new controlling shareholder appoints its management team,” he states. “All of them, including the interim [chief executive], John Lamola, supports this development as a necessary and natural step in strengthening SAA’s position in both the local and international aviation markets.” A notice on SAA’s website invites “suitably qualified applicants”, “including the present incumbents”, to apply for the roles of chief executive, chief commercial officer, chief human capital officer, technical chief executive and head of the airline's catering business, in the period to 26 April. The South African government had been seeking to offload a 51% stake in the carrier, holding talks with Takatso for around three years. However, the two sides were unable to reach an agreement over an updated valuation. The government envisages that the airline will increase the number of routes that it flies from around 19 currently to 40 over the coming years, with a corresponding increase in its fleet. SAA suffered from weak financing and substantial losses even before the pandemic hit, requiring significant government intervention to keep it afloat. It was in a period of business rescue, where it was overseen by a turnaround specialist, from December 2019 to April 2021, during which it was restructured and shed much of its fleet.


Boeing delivers 66 Max jets and 13 787s in first quarter
April 10, 2024
Boeing delivered 67 737s, 13 787s and three 767s during the first quarter ended 31 March. The US airframer's output included three 767-based KC-46 tankers and one 737-800-based P-8 maritime patrol aircraft, Boeing's latest delivery data shows. Commercial deliveries in March comprised 24 Max jets and five 787s. In February, Boeing delivered 17 Max jets and seven 787s, following 25 Max jets and one 787 in January. Boeing booked 131 commercial aircraft orders during the January-March period. This includes orders from unidentified customers for 20 777X jets (placed in March), one 777 Freighter (in February), 10 Max jets (February), and another deal in January for three Max jets. Remaining orders booked in March came from American Airlines for 85 Max jets and from Ethiopian Airlines for eight 777-9s. Royal Brunei Airlines in February ordered four 787-9s.


Spirit defers Airbus deliveries and furloughs 260 pilots
April 09, 2024
Airbus has agreed to reschedule deliveries of new aircraft to Spirit Airlines initially intended to arrive in the second quarter of 2025 through the end of 2026, a deferment the US carrier says will save it $340 million over the next two years. The aircraft will instead be delivered in a 2030-2031 timeframe, the US airline states. Miramar, Florida-based Spirit's newly disclosed cash-saving efforts include the furloughing of approximately 260 pilots, effective 1 September, made necessary by fleet-size limitations caused by Pratt & Whitney geared-turbofan engine availability issues, along with the aircraft deferrals. Spirit and JetBlue Airways in early March terminated the merger agreement they agreed in July 2022, seven weeks after a US district court judge ruled in favour of the Department of Justice after it challenged the deal on competition grounds. The court's ruling blocked an influx of capital to Spirit from JetBlue. "This amendment to our agreement with Airbus is an important part of Spirit's comprehensive plan to bolster profitability and strengthen our balance sheet," Spirit chief executive Ted Christie states. "Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment." The deferral agreement with Airbus follows a compensation deal made with Pratt & Whitney affiliate International Aero Engines to receive a monthly credit in relation to the grounding of PW1100G-JM-powered Airbus A320neos. Spirit has on order 77 and 40 A321neos and A320neos, respectively. The deferral agreement with Airbus does not affect the number of Airbus aircraft Spirit has on order, the carrier says.


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