South African Airways Seeks Its 5th CEO In The Last 5 Years After Sale Deal Collapses

Summary

• South African Airways is searching for new executives after the collapse of semi-privatization negotiations last month.
• Over the past three years, it has been led by an interim executive management team and is now looking for permanent leadership for the future.
• Over the last ten years, SAA has had eight CEOs, with the majority serving in interim roles.

South African Airways is looking for a new permanent Chief Executive Officer and other executive managers following the collapse of the semi-privatization deal last month. A new hire would be the airline’s fifth CEO in the last five years.

SAA is looking for new executives

This past weekend, South African Airways (SAA) advertised five interim executive management positions. The airline is looking for a new Chief Executive Officer (CEO), Chief Commercial Officer (CCO), Chief Human Capital Officer, SAA Technical CEO, and Air Chefs CEO. It has invited suitably qualified candidates, including the present incumbents, to apply until April 26, 2024.

Over the past three years, an interim executive management team has been at the helm of the South African national carrier, with the task of steering the airline until the anticipated strategic equity partner could come onboard. The government had been negotiating a deal to sell a 51% stake of the airline to the Takatso Consortium since 2021. However, after several months of negotiations, the Minister of Public Enterprises announced that the deal was terminated under mutual agreement.

With the pursuit of this transaction now called off, SAA’s board is seeking to appoint a properly constituted and permanent executive team to spearhead the airline’s strategic plan into the future. Speaking about the developments, the Chairperson of the Interim Board of Directors, Derek Hanekom, said,

“The filling of these posts is a positive and decisive step aimed at providing organizational stability and predictable direction of the growth plans and expansion plans currently being pursued.”

Four CEOs in the last five years

SAA’s leadership team is currently led by Professor John Lamola as interim CEO. Lamola took up the position in May 2022, nearly a year after the airline exited business rescue. He replaced Thomas Kgokolo, who had been interim CEO since April 2021.

According to Hanekom, the executive management team has rebuilt the state-owned carrier over the last few years with the understanding that their positions would remain interim until a time when a new controlling shareholder appointed its management team. All executives, including the interim CEO, support the new development, deeming it a necessary and natural step towards strengthening the airline’s position in the domestic and international markets. Hanekom added,

“SAA’s strong recovery would not have been possible without the dedication and passion of every single valued SAA employee. The commitment of all employees who serve as the backbone of the airline and who believe in the growth of SAA is highly appreciated by the SAA Board.”

South African Airways has seen four different CEOs since 2019. Furthermore, between 2014 and 2024, it has had up to eight different CEOs, with the majority serving in interim or acting roles. This includes Nico Bezuidenhout (appointed 2014), Thuli Mpshe (2015), Musa Zwane (2015), Vuyani Jarana (2017), Zuks Ramasia (2019), Philip Saunders (2020), Thomas Kgokolo (2021), and John Lamola (2022).

The sale of Mango Airlines

South Africa’s Minister of Public Enterprises, Pravin Gordhan, is also set to retire later this year after the country’s elections. Gordhan leads the Department of Public Enterprises, which oversees state-owned companies like SAA and its low-cost subsidiary Mango Airlines.

Mango has been in business rescue since 2021, with the business rescue practitioner Sipho Sono negotiating a deal to sell the LCC to a private consortium. However, Sono and Gordhan have been in a long-standing legal battle. Last month, ch-aviation reported that the Minister’s retirement may finally pave the way for Mango’s sale.

Sono later announced that the sale of the carrier would proceed following a crucial ruling by the Supreme Court of Appeal (SCA), which dismissed the government’s last-ditch effort to prevent the sale. The carrier will be sold to Ubuntu Air Services, a partnership between Johannesburg-based tour operator Africa Stay and DG Capital. However, there is no specific timeline for when the deal will go through.

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