SAA: Route optimisation drives network growth; balance sheet to benefit

Johannesburg: South African Airways (SAA) will add additional destinations into the Indian sub-continent as the airline continues its network optimisation exercise. From 1 April 2015 SAA will be redirecting its flights to all Indian destinations via Abu Dhabi through its new direct service with onward code-share agreement connections with Etihad and Jet Airways into the sub-continent. The cessation of direct flights between Johannesburg and Mumbai will stem substantial losses.

Last week SAA Acting CEO Nico Bezuidenhout announced the reconfiguration of flights between South Africa and China with code-share agreements also expanding airline network reach. “Optimisation of the SAA network is an ongoing process and a critical aspect of the Long-Term Turnaround Strategy. It is also a key deliverable of the 90 Day Action Plan,” says Mr. Bezuidenhout. The move presents significant commercial opportunity to the airline.

“This is a double-win for the business. Connectivity between South Africa and major economic centres within two strategically important BRICS member states has been increased substantially while an immediate balance sheet gain curbs losses on challenging routes. The commercial opportunity has grown tenfold at both ends of a sound business case.” Mr. Bezuidenhout expects the positive impact of the remedial action to reflect during the 2015/16 financial year.

New destinations in India include Delhi, Hyderabad, Bangalore and Madras among others. Passengers booked on flights departing after the end date of the direct service will be accommodated on the reconfigured network.