SAA CEO quits over lack of state support

South African Airways’ CEO Vuyani Jarana has resigned after less than two years in the job, saying his turnaround strategy for the loss-making airline was being undermined by a lack of state funding and too much bureaucracy. The airline said late Sunday that its board had accepted Jarana’s resignation. In a resignation letter dated May 29, seen by Reuters, Jarana told the chairman of the airline’s board that there was a lack of progress on implementing the group’s strategy. “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 the LTTS (long-term turnaround strategy) is achievable,” Jarana said in his resignation letter. His departure highlights the challenges facing South African President Cyril Ramaphosa as he seeks to speed up reforms at SAA and other state-owned entities. They are dependent on government bailouts and are regularly cited by ratings agencies as one of the main threats to the country’s economic growth. Jarana, a former executive at telecoms company Vodacom, was appointed in late 2017 to implement a strategy to return the airline to profit and wean it off government bailouts. SAA, which has not made a profit since 2011, has drawn up a five-year turnaround plan that includes slashing costs and cancelling unprofitable routes as it grapples with cost increases that far outstrip revenue growth.<br/>