SAA names Musa Zwane as new CEO

South African Airways appointed Musa Zwane as the state-owned carrier’s seventh acting or permanent chief executive officer in less than four years as Chairman Dudu Myeni confirmed plans to renegotiate a deal to lease five A330 aircraft from Airbus Group SE.

Zwane, the head of the airline’s maintenance unit, replaces Thuli Mpshe as acting CEO after she held the position for less than four months. The switch came as Chief Financial Officer Wolf Meyer resigned, one of a series of departures from the company’s senior ranks in recent weeks.

Zwane was appointed “due to operational demands within the business,” SAA spokesman Tlali Tlali said on Tuesday. The company plans to make an announcement later this week regarding the CFO position, he said.

SAA, which has been cutting costs to ease a dependence on government-guaranteed loans, had renegotiated an order for 10 A320 aircraft earlier this year in favor of leasing five more modern A330 models, a plan that was to save about R1.4 billion. The unprofitable carrier has now proposed an alternative proposal whereby Airbus sells the planes to an unidentified South African leasing company, Myeni wrote in Johannesburg-based newspaper Business Day on Wednesday.

Currency Fluctuations

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“Leasing directly from a South African company will ensure that SAA is not exposed to currency fluctuations, as the lease agreement will be rand-denominated,” she said. “We have informed the finance minister of the offer and the minister has indicated that he is not opposed to the alternative proposals, on condition that the final transaction is in the best interests of SAA.”

SAA has received written formal proposals from financial institutions and banks to arrange the full payment for the five A330 aircraft, Myeni said. She also reiterated a plan to expand “aggressively” in Africa, while defending market share on long- haul routes.

The company is working to meet conditions set by Finance Minister Nhlanhla Nene before he’ll consider a request for a new credit guarantee. Finalizing the Airbus swap transaction structure was one of the conditions, Treasury spokeswoman Phumza Macanda said Nov. 12. The National Treasury took responsibility for the airline’s turnaround after it was transferred from the Department of Public Enterprises in December.

SAA named human-resources manager Mpshe acting CEO after Nico Bezuidenhout returned to his role as head of the company’s low-cost unit Mango in July. Other departures this year include Chief Strategy Officer Barry Parsons, who left the company in July, and director Anthony Dixon, who resigned this month. Meyer’s departure was “mutually agreed” and the parties have decided not to release any further statements on the subject, Tlali said.

- Bloomberg