The Group Chief Executive Officer of South African Airways (SAA), Vuyani Jarana, has resigned amidst frustration over lack of progress in the turnaround strategies for the distressed airline.
Jarana reportedly tendered his resignation letter to the airline’s board chairperson Johannes “JB” Magwaza.
Jarana, a former CEO of Vodacom Business, was appointed in November 2017 to revive the carrier, with Jarana replacing the company’s chief technical officer, Musa Zwane, who was acting in the position since 2015.
He was in Nigeria, one of the airline’s best performing markets, twice where he unfolded his plans to return the carrier to profitability having been running at a loss for years.
He had said the carrier would require R21.5 billion (about N609bn) for the next three years as part of its turnaround strategy to return it to profitability.
This amount is expected to cover the airline’s debt profile of R9.2bn and the working capital of 12.5bn.
He explained that a big chunk of the R5bn injected in the 2018/2019 financial year was used “to fund creditors up to the end of March 2018”, adding that workers are being owed salaries. “The strategy is being systematically undermined and as the group chief executive officer, I can no longer be able to assure the board and the public that our strategy is achievable,” he said in the resignation letter.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
