SAA requests state funds for new fleet

The company, Mzimela said, had asked the government, its sole shareholder, for a capital injection of between R4 and R5 billion over the next five years to finance the new fleet acquisition. She added that figures were under discussion.

Mzimela admitted that SAA was currently facing "the same challenges as all global airlines through increasing pressure on margins and greater competition" and that the new aircraft would enable the airline to "make massive savings on its jet fuel bill while providing better and more frequent connections to key destinations". This is especially important in an environment "where oil costs are clearly set to remain well beyond $100 (R766) a barrel and competition increasingly and aggressively cherry-picks on many of SAA's routes."

Aircraft manufacturers are now producing new models that use at least 20 percent less fuel per kilometre per passenger, Business Report says. Both Airbus and Boeing have been offering their latest models to SAA, who aims to replace its short-haul fleet of Boeing 737-800 aircraft with more fuel-efficient Airbus A320s, Mzimela said. The fact that the A320s shared common cockpits, many of their parts and standard operational and maintenance procedures with SAA's existing A319 and long-haul A340 fleet, will be of great advantage to SAA.

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