SAA CEO justifies millions spent on execs and consulting firms

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.

READ: Cash-strapped SAA slammed for multi-million rand salaries

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


Recommended

by NEWSROOM AI
Read More
Cash-strapped SAA slammed for multi-million rand salaries

Cash-strapped SAA slammed for multi-million rand salaries

Just this month SAA was handed another R5 billion, bringing the total bailout amount in the past twelve months to R20 billion.

Global airlines interested in taking on spare SAA pilots - CEO Vuyani Jarana

Global airlines interested in taking on spare SAA pilots - CEO Vuyani Jarana

SAA announced that it would be offering pilots and cabin crew to other carriers to cut costs and become commercially viable.

What lessons can SAA learn from Ethiopian Airlines?

What lessons can SAA learn from Ethiopian Airlines?

South African Airways (SAA) racked up record losses of R5.7bn in the 2017-2018 financial year.

Why we cannot afford to let SAA die (despite what Bruce Whitfield says)

Why we cannot afford to let SAA die (despite what Bruce Whitfield says)

Bruce Whitfield says SAA must be allowed to die. SA Flyer Magazine’s Guy Leitch disagrees. Whitfield got him on air to explain.

Meet turnaround specialist Bob Head, SAA’s brave new Chief Financial Officer

Meet turnaround specialist Bob Head, SAA’s brave new Chief Financial Officer

The Money Show’s Bruce Whitfield interviews Head, a man with an extremely tough – and vitally important – job.

 'We expect that through this turn around, SAA will break even by 2021'

'We expect that through this turn around, SAA will break even by 2021'

Deputy Finance Minister Mondli Gungubele spoke to Karima Brown about plans to save the national carrier.

SAA has outstanding debt of R9.2 billion

SAA has outstanding debt of R9.2 billion

The airline appeared before Scopa in Parliament on Tuesday to answer questions about its annual report and financial statements.

Popular articles
[BREAKING NEWS] Johnny Clegg (66) has passed away

[BREAKING NEWS] Johnny Clegg (66) has passed away

Specialists diagnosed the singer with pancreatic cancer in 2015.

[LISTEN] Voice of the underworld - a 'retired' Cape Flats gangster speaks out

[LISTEN] Voice of the underworld - a 'retired' Cape Flats gangster speaks out

Jason is a 50-year-old former member of The Americans, the largest street gang operating in Cape Town.

Shark attack: 'I saw a cloud of blood in the water'

Shark attack: 'I saw a cloud of blood in the water'

Joao Felizardo helped rescue his surfer buddy Dusty Phelan after a shark bit him across both his legs in Port Alfred.

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

'Batchelor was once close to Mikey Schultz and self-confessed Kebble killers'

Journalist and author Mandy Wiener describes former footballer Marc Batchelor's links to alleged underworld figures.

How Christo Wiese became the richest in SA, and how it all came crashing down

How Christo Wiese became the richest in SA, and how it all came crashing down

The Money Show’s Bruce Whitfield interviews TJ Strydom, author of “Christo Wiese - Risk And Riches”.

'We find connections between gangs in Cape Town, Johannesburg and Durban'

'We find connections between gangs in Cape Town, Johannesburg and Durban'

Global Initiative against Transnational Organised Crime's Simone Haysom says gangs operate far broader than the Western Cape.

'I should have told the Sunday Times the pot smoking was irrelevant'

'I should have told the Sunday Times the pot smoking was irrelevant'

Investigative journalist Jacques Pauw says he's sorry for any harm caused in his article on Mkhwebane and her principal witness.

I decided to make this Rihanna song with my maskandi vision - Mbuzeni Mkhize

I decided to make this Rihanna song with my maskandi vision - Mbuzeni Mkhize

After South African star Mbuzeni Mkhize performed a remix of Rihanna's track 'Diamonds' she contacted him to collaborate with her.

[WATCH] Over 50 artists record special version of Johnny Clegg’s  “The Crossing”

[WATCH] Over 50 artists record special version of Johnny Clegg’s “The Crossing”

For this week's #GoodNewsThursdays, we find out the inspiration behind the production.