What's up at SAA ??
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What's up at SAA ??
Heard via the grapevine today that Khaya was going to make an announcement today re the "way forward''(what a nice way to put it) re SAA restructuring. Anyone got any info on this??
Join Date: May 2005
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lots is happening. Board signed off on the plan on the 2nd, now its off to DPE followed by presentations to a number of other government departments as well as the parliamentary portfolio committee once everyone is in agreement then it goes to the cabinet for the final rubber stamp. This should all be done by the end of June. In the meantime measures that fall within the CEO’s delegation of Authority will be actioned immediately these include retrenching up to 50% of management, closing certain offices etc.
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more mannagers
SAA problem is the glut of managers and instead of getting rid of most and holding the rest accountable for their actions THE SHACK has just mployed 2 more a chris smythe and clive smythe so the circus continues.
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Chris Smythe is one of the most intellegent people I have ever met. He was Finance Director of NAC, Kenya Airways and Virgin Nigeria. If he can keep up his past record, he will deffinately be an asset in what seems to be a desert of competence at SAA.
I'll second those complimentary comments by MBDriver about Chris Smythe. He kept close control of the finances at VK without restricting the managers who had genuine and justifiable needs for expenditure.
If there is wastage at SAA it is about to stop.
If there is wastage at SAA it is about to stop.
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Chris is a very good operator. For all pilots he has his PPL at least and may have his CPL. He will be sorely missed at VK which will be a much poorer place without him. He will make an impact at SAA, just be careful of his sense of humour! Good luck to him.
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Chris had a CPL I dont know if it is still valid, but it was. Never mind the sense of humour, just watch out if you are in front of him and there are steps. He tends to fall over everything.
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Interesting that Khaya has chosen to bring Chris in, GM flight ops now reports to him and not the CEO anymore. I get the feeling this has something to do with the incumbent not playing ball on the cost side and so he has effectively been sidelined. Same situation with airport operations. Interesting times. One hopes that Chris will be able to manage the political firestrom he has chosen to walk into....
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Modern Management, SAA Style
"A Modern Parable" from The Business Day 25 April 2007
A Japanese company (Toyota) and a South African company (South African
Airways) decided to have a canoe race on the Vaal River. Both teams
practised long and hard to reach their peak performance before the race.
On the big day, the Japanese won by a mile. The SAA team, very
discouraged and depressed, decided to investigate the reason for the
crushing defeat. A team of senior managers was formed to investigate and
recommend appropriate action. The conclusion was that the Japanese had
eight people rowing and one steering, while the SAA team had eight
people steering and one rowing.
Feeling a deeper study was in order, SAA management hired a consulting
company and paid it a large amount of money for a second opinion. The
consulting company advised, of course, that too many people were
steering the boat, while not enough were rowing.
Not sure of how to utilise that information, but wanting to prevent
another loss to the Japanese, the SAA team totally re-organised the
rowing team's management structure to include four steering supervisors,
three area steering superintendents and one assistant superintendent
steering manager. It also implemented a new performance system that
would give the one person rowing the boat greater incentive to work
harder. It was called The "Rowing Team Quality First Programme," with
dinners and free pens for the rower. There was a lot of discussion about
getting new paddles, canoes and other equipment, as well as extra
holidays for practices and bonuses.
The next year the Japanese won by two miles.
Humiliated, SAA management laid off the rower for poor performance,
halted development of a new canoe, sold the paddles and cancelled all
capital investments for new equipment. The money saved was distributed
to executives as bonuses and the team outsourced to India
A Japanese company (Toyota) and a South African company (South African
Airways) decided to have a canoe race on the Vaal River. Both teams
practised long and hard to reach their peak performance before the race.
On the big day, the Japanese won by a mile. The SAA team, very
discouraged and depressed, decided to investigate the reason for the
crushing defeat. A team of senior managers was formed to investigate and
recommend appropriate action. The conclusion was that the Japanese had
eight people rowing and one steering, while the SAA team had eight
people steering and one rowing.
Feeling a deeper study was in order, SAA management hired a consulting
company and paid it a large amount of money for a second opinion. The
consulting company advised, of course, that too many people were
steering the boat, while not enough were rowing.
Not sure of how to utilise that information, but wanting to prevent
another loss to the Japanese, the SAA team totally re-organised the
rowing team's management structure to include four steering supervisors,
three area steering superintendents and one assistant superintendent
steering manager. It also implemented a new performance system that
would give the one person rowing the boat greater incentive to work
harder. It was called The "Rowing Team Quality First Programme," with
dinners and free pens for the rower. There was a lot of discussion about
getting new paddles, canoes and other equipment, as well as extra
holidays for practices and bonuses.
The next year the Japanese won by two miles.
Humiliated, SAA management laid off the rower for poor performance,
halted development of a new canoe, sold the paddles and cancelled all
capital investments for new equipment. The money saved was distributed
to executives as bonuses and the team outsourced to India
Last edited by FUG; 9th May 2007 at 12:48.
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Deskjockey
What's with the story that SAA are reportedly scrapping LHR-JNB
My initial reaction is pretty much the same as John McEnroe's famous outburst at Wimbledon.
What's with the story that SAA are reportedly scrapping LHR-JNB
My initial reaction is pretty much the same as John McEnroe's famous outburst at Wimbledon.
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Dont know where that has come from and its certainly not true. What may happen is that a few flights will get cancelled during the phasing out of the 744 but that will be about it. The only termination that is being considered at this point is the LHR CPT service- but even then what we are looking into to is that the flight will operate out of JNB which will give us triple daily service on the route out of JNB.
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I can't see SAA phasing out LHR-JNB as it is obviously a flagship route, but I did hear from an internal source that it is a loss maker. I assume that this is based on the total cost of the operation at LHR and the office in Regent Street (or wherever it is in Central London?), but even so, they must have their revenue management seriously wrong if they consistently lose money on a route that has such a high load factor, and where the front of the aircraft often sells out before the back. Either that or too many of Khaya's buddies are travelling on freebies!
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The opposition will jump to take these slots from S.A.A. (JNB or Cape Town) If you cannot make money on the route that makes POUNDS then you have serious problems. But then this is a rumor network, will be very disappointed (worried if it worked for them) if this is true.
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Capetonian-
High load factor is not neccessarily an indication of route profitability. I would hazard a guess that yield or revenue per seat nautical mile would be the benchmark for a route going into red or staying black. (Excuse my political incorrectness - making money or losing money)
Be that as it may- I cannot see SAA dropping the LHR - not in a million years.
High load factor is not neccessarily an indication of route profitability. I would hazard a guess that yield or revenue per seat nautical mile would be the benchmark for a route going into red or staying black. (Excuse my political incorrectness - making money or losing money)
Be that as it may- I cannot see SAA dropping the LHR - not in a million years.
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High load factor is not neccessarily an indication of route profitability.
I'm very aware of that. You could fill every seat every flight if it was cheap enough and still lose money. If it's true that the route is losing money then they have their yield management wrong, or their costs are too high, or they have revenue leaks, or there are too many freebies .... or a combination of all that.
I'm very aware of that. You could fill every seat every flight if it was cheap enough and still lose money. If it's true that the route is losing money then they have their yield management wrong, or their costs are too high, or they have revenue leaks, or there are too many freebies .... or a combination of all that.
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I'm wondering if the article in question was a misprint - omitted the "East" in East London???
Be suprised to see them pulling off either CPT or JNB from LHR as these are flagship routes.
Be suprised to see them pulling off either CPT or JNB from LHR as these are flagship routes.