South African Airways removes CEO

This adds to the south African Carriers' recent spate of management resignations.  Thuli Mpshe held the position for four months, making her SAA's seventh CEO in three years.

___4376514___https:______static.pulse.com.gh___webservice___escenic___binary___4376514___2015___11___19___18___South-African-Airways

Thuli Mpshe has been replaced as South African Carrier, South African Airways' Chief Executive Officer.

This adds to the south African Carriers' recent spate of management resignations.  huli Mpshe held the position for four months, making her SAA's seventh CEO in three years.

She is South African Airways’ (SAA) seventh chief executive in three years. In a statement released by SAA, the head of technical division, Musa Zwane, had now been bumped up to the acting CEO position, while Mpshe would return to her role as general manager for Human Resources.

It is believe the reshuffle is due to  SAA Chairwoman Dudu Myeni's decision to renegotiate the deal for the leaseo f some A330 aircrafts from Airbus, which has brought a lot of controversy in the rank and file of the companay. This is because the government is opposing the deal citing insufficient funds.

Business Day newspaper on Wednesday, reported that the loss-making SAA initially ordered 41 aircraft from Airbus in 2002 most of which have been delivered and paid for.

“In our current discussion, we have agreed with Airbus to swap delivery of 10 outstanding A320s for five A330s, which are more suitable for long-haul flights,” said Myeni.

“The swap from A320s to A330s is not under debate. As always, the issue is how it will be funded.”

SAA has maintained that the A330s would enable the airline to service long-haul routes more cost-effectively.

The company has over the last 10 years embarked on a major expansion of its global networks, including some less profitable African and Asian markets.

The state has poured millions of dollars into the flailing airline over the last few years and it limps from one financial crisis to another.

Myeni is facing growing political opposition as well internal differences with senior management. Which why the airline chief financial officer resigned  this week.

She also received a vote of no confidence in her leadership as CEO of the South African Airline.

However, the falling profitability of SAA is not Unique  to the airline company.  Many government run airlines are facing profitability problems. This include rival Kenya Airways, which in July booked a $252 million loss, the biggest in Kenya’s corporate history.

Kenya Airways has been unprofitable since 2012 as the carrier struggles with a decline in tourism traffic following a number of attacks by Islamist militants.

Last week the carrier, 30% owned by the government, reported that its pretax loss for the six months to September narrowed slightly to $116 million, helped by lower fuel costs.

The airline had reported a pretax loss of $122.55 million a year earlier.

Many state-owned airlines in Africa have in recent years been battered, with the notable exception of Ethiopian Airlines, which in its last set of accounts made more profit than all the continent’s airlines put together.

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