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
Ramaphosa unveils statue of Madiba at UN headquarters

Ramaphosa unveils statue of Madiba at UN headquarters

The 1.9 metre statue is said to be a gift from South Africa to the international community.

WC DA leader refuses to hand over electronic devices as party probes media leak

WC DA leader refuses to hand over electronic devices as party probes media leak

Western Cape DA leader Bonginkosi Madikizela confirmed that he was asked to hand over his devices but he says that he refused.

Ramaphosa's new advisory team has 6 months to draw up national land reform plan

Ramaphosa's new advisory team has 6 months to draw up national land reform plan

Land researcher Prof. Ruth Hall says the panel faces an exciting challenge to see how government can fix the land reform process.

[LISTEN] New Visa regulations could change the face of South African tourism

[LISTEN] New Visa regulations could change the face of South African tourism

Lecturer at TUT's Dept of Tourism, Unathi Henama says that the tourism sector is at the center of the economic policies in SA.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.