South African Airways to Invest Up to $7b In Aircraft Acquisition

South African Airways
South African Airways

AFRICANGLOBE – South African Airways (SAA) is set to invest between $4 and $7 billion on the acquisition of 25-30 long haul aircrafts following increased activity in the South African air travel industry and increased number of travelers across the continent.

According to reports, the SAA plans to acquire the Boeing 787 and Airbus A350.

According to Nico Bezuidenhout, CE of SAA, the state-owned carrier should take delivery of these aircraft from 2017.

SAA would not disclose the aircraft manufacturer they will be buying these aircraft from.

“SAA hopes fuel efficient aircraft will help defray expensive energy costs,” Bezuidenhout told reporters.

It was recently reported that the financially- struggling SAA will borrow R1.5bn from two South African banks.

Chief financial officer Wolf Meyer told South African media early last month this was until the cabinet adopted the airline’s turnaround plans. The banks were identified as investment banks, Rand Merchant Bank and Investec.

SAA has expanded the number of flights to Africa and the world. It launched flights to new destinations since 2011 and cut prices to attract more travelers to South Africa.

 

By: Mzwandile Jacks