JOHANNEBURG - South African Airways lost R13,74bn between 2002 and 2008. This is according to a recently resigned Minister of Public Enterprises, Alec Erwin. In answer to a parliamentary question from Manie van Dyk of the Democratic Alliance (see here) Erwin stated that this figure excluded restructuring costs of R1,345bn and R137m paid on loans raised with financial institutions based on government guarantees.

In his reply Erwin also disclosed that since 2004 the government has pumped R9,2bn into the troubled national carrier, and provided a further R2,9bn in guarantees. As of March 31 2008 SAA had total debts of R17,7bn, and R5,4bn in the bank. Shareholder equity stood at R270m as at 31 March 2007(?).

In answer to a separate question Erwin disclosed that SAA CEO, Khaya Ngqula, received remuneration of R5,687,669 over the past financial year. This consisted of a basic salary of R5m along with "retention premium" of R687,669. Since his appointment on October 15 2004 Ngqula has been paid a total of R19,832,669 by SAA (see here).

Erwin stated that "At this stage no consideration is being given to replacing the CEO of SAA. The airline operates in a tough commercial environment and the current management team and CEO continue to sustain SAA's high service standard in a difficult market environment. In addition, the current management team and CEO should be commended on the implementation of a comprehensive and challenging restructuring programme that has enabled the airline to post an operating profit of R123 million prior to restructuring costs at the end of 2007/08. "