South African Airways (SAA) CEO Vuyani Jarana says the use of millions of rands on executives and consulting firms is essential to the company's turn around plan.
Jarana was responding to a report by the Mail & Guardian which details how some of the R5 billion bailout money recently injected into the airline, has been dedicated to bringing in European consultants and a German bank - in a deal to analyse its financials and restructure its debt.
The report also details how some executives are earning up to R4 million a year.
Jarana says his strategy depends on hiring top skills from both government and the private sector.
When I got here I indicated quite clearly and unequivocally that the skills and capacity to execute strategy has depleted.— Vuyani Jarana, SAA CEO
SAA is a global business, aviation skills are very thin in the country but also most importantly the skills and various elements of the business sit predominantly in the private sector. To turn around the business you need deep skills and that is what we are doing.— Vuyani Jarana, SAA CEO
You will not succeed in turning around SAA without the skills. We bench mark salaries here at SAA globally and locally, at the same time keep in mind that these people are executives, they have been working on otheR projects in other companies and if you are going to entice them to come and work for SAA they will not come for nothing.— Vuyani Jarana, SAA CEO
Click on the link below to listen to Jarana's full response....
This article first appeared on 702 : SAA CEO justifies millions spent on execs and consulting firms