From turbulence to take-off: Transport minister reveals SAA is flying back into profit and expansion
Delivering her department's budget vote speech in parliament, Creecy said a study by Oxford Economics Africa confirmed that SAA contributed R9.1bn to South Africa's GDP in 2023/2024, a figure projected to more than triple to R32.6bn by 2029/2030.
'Over the same period, the airline's operations are expected to support 86,700 jobs, up from the current 25,000, demonstrating its growing role as a national employer and economic catalyst,' said Creecy.
Once plagued by allegations of corruption, mismanagement and state capture, the national carrier appears to be staging a dramatic turnaround.
'The airline has concluded three out of four outstanding audits and reported a profit of R252m for the 2022/2023 financial year, which is the first profit since 2012. Now operating independently and no longer reliant on government guarantees, SAA is self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring,' she said.
Creecy said SAA is pursuing a 'bold route expansion strategy' to improve intra-African connectivity and global reach.
'New regional routes from Johannesburg and Cape Town aim to boost intra-African connectivity, supporting tourism and trade. The airline has begun a measured fleet expansion to meet growing demand, reinforcing its role as a connector of economies across the continent and beyond.
'SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade,' she said.
The airline has also been internationally recognised, being ranked the fourth-best airline in Africa in the 2025 World Airline Awards.
In the global rankings, it moved up two places from 69th in 2024 to 67th in 2025 out of more than 325 airlines evaluated.
Looking ahead, Creecy said the department expects 42-million passengers and 1.2-million tons of air freight to move through the Airports Company South Africa (Acsa) network by the end of the current political term.
To prepare for this growth, she said Acsa has allocated R21.7bn for infrastructure development.
'This will improve facilities for passenger safety and comfort over the medium term and build a new freight terminal at OR Tambo International Airport,' she said.
'In addition, we are fast-tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of the facilities and technologies at each of our airports to improve security of passengers and cargo, as well as the convenience of airport users.'
Creecy also addressed concerns about the Air Traffic and Navigation Services (ATNS), following widespread operational challenges last December.
'I appointed a panel of experts to advise on the root causes of problems at the entity and necessary remedial measures,' said Creecy.
In January, the expert team found 'acute shortages of critical staff,' outdated navigation and surveillance systems, and systemic weaknesses in safety management.
'Since February 2025, 37 successful recruitments have been made in key areas including air traffic controllers, investigation and safety specialists, engineering instructors and simulator programmers,' said Creecy.
She added the aviation sector is on track to boost tourism, economic growth and job creation.
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The Herald
an hour ago
- The Herald
From turbulence to take-off: Transport minister reveals SAA is flying back into profit and expansion
Transport minister Barbara Creecy has painted an optimistic picture of the aviation sector's economic prospects, announcing that South African Airways (SAA) is on track to significantly boost its contribution to the country's GDP and employment. Delivering her department's budget vote speech in parliament, Creecy said a study by Oxford Economics Africa confirmed that SAA contributed R9.1bn to South Africa's GDP in 2023/2024, a figure projected to more than triple to R32.6bn by 2029/2030. 'Over the same period, the airline's operations are expected to support 86,700 jobs, up from the current 25,000, demonstrating its growing role as a national employer and economic catalyst,' said Creecy. Once plagued by allegations of corruption, mismanagement and state capture, the national carrier appears to be staging a dramatic turnaround. 'The airline has concluded three out of four outstanding audits and reported a profit of R252m for the 2022/2023 financial year, which is the first profit since 2012. Now operating independently and no longer reliant on government guarantees, SAA is self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring,' she said. Creecy said SAA is pursuing a 'bold route expansion strategy' to improve intra-African connectivity and global reach. 'New regional routes from Johannesburg and Cape Town aim to boost intra-African connectivity, supporting tourism and trade. The airline has begun a measured fleet expansion to meet growing demand, reinforcing its role as a connector of economies across the continent and beyond. 'SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade,' she said. The airline has also been internationally recognised, being ranked the fourth-best airline in Africa in the 2025 World Airline Awards. In the global rankings, it moved up two places from 69th in 2024 to 67th in 2025 out of more than 325 airlines evaluated. Looking ahead, Creecy said the department expects 42-million passengers and 1.2-million tons of air freight to move through the Airports Company South Africa (Acsa) network by the end of the current political term. To prepare for this growth, she said Acsa has allocated R21.7bn for infrastructure development. 'This will improve facilities for passenger safety and comfort over the medium term and build a new freight terminal at OR Tambo International Airport,' she said. 'In addition, we are fast-tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of the facilities and technologies at each of our airports to improve security of passengers and cargo, as well as the convenience of airport users.' Creecy also addressed concerns about the Air Traffic and Navigation Services (ATNS), following widespread operational challenges last December. 'I appointed a panel of experts to advise on the root causes of problems at the entity and necessary remedial measures,' said Creecy. In January, the expert team found 'acute shortages of critical staff,' outdated navigation and surveillance systems, and systemic weaknesses in safety management. 'Since February 2025, 37 successful recruitments have been made in key areas including air traffic controllers, investigation and safety specialists, engineering instructors and simulator programmers,' said Creecy. She added the aviation sector is on track to boost tourism, economic growth and job creation. TimesLIVE
IOL News
13 hours ago
- IOL News
Creecy unveils six key targets to enhance South Africa's transport capabilities
Transport Minister Barbara Creecy speaking at the 2025 Southern African Transport Conference (SATC) in Pretoria on Monday. Image: Supplied Banele Ginidza Transport Minister Barbara Creecy has unveiled a bold strategy aimed at improving South Africa's transport sector's freights and goods handling capacity and to transform the passenger, freight, and aviation sectors over the next four years. Speaking at the 2025 Southern African Transport Conference (SATC) in Pretoria on Monday, Creecy said the first target was to increase freight volume on the Transnet network to 250 million tons annually by 2029, a move that is expected to strengthen the backbone of South Africa's logistics framework. Addressing port efficiency, Creecy also said South Africa aimed to achieve an international operational benchmark of 30 gross crane movements per hour when loading and unloading vessels, a standard necessary for remaining competitive in global markets. 'We need to achieve this standard to remain globally competitive,' Creecy noted. Passenger transport also features prominently in Creecy's strategy, with a commitment to ensure that the passenger rail system provides safe, reliable, and affordable transport. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The goal is to achieve 600 million passenger journeys per annum by 2030, underpinned by an extensive revitalisation of the rail network. By the end of May 2025, the Passenger Rail Agency of South Africa (Prasa) aims to reopen 35 out of 40 passenger corridors, resulting in an expected increase in journeys from 77 million last year to 116 million by 2025/26. The aviation sector is also poised for significant enhancements with a projected increase to 42 million passengers annually moving through the Airports Company South Africa (Acsa) network by the end of Creecy's current political term. To facilitate this growth, Creecy announced that R21.7 billion has been allocated to the Airports Company South Africa (Acsa) for infrastructure development, which includes modernising passenger facilities and constructing a new freight terminal at OR Tambo International Airport. Highlighting the economic role of South African Airways (SAA), Creecy said a recent Oxford Economics Africa study confirmed SAA contributed R9.1bn to the GDP in 2023/24, with projections rising to R32.6bn by 2029/30. Creecy said SAA was set to support 86 700 jobs by the end of this term, up from 25 000 at present. To solidify South Africa's standing in regional and international trade, a target of 1.2 million tons of airfreight per annum through Acsa airports has also been set. This initiative positions the country as a vital player in the logistics landscape. The sixth – and most critical – target is to reduce road fatalities by 45% by 2029, in line with the United Nations (UN) goal of halving road deaths by 2030. Creecy praised the progress made so far, reporting a consistent 9% annual decline in accidents and fatalities, but emphasised the need to intensify efforts to reduce pedestrian deaths, which account for 44% of fatalities. With a keen focus on the rail industry, Creecy reiterated the department's commitment to rejuvenating rail transport as a primary means of moving people and goods. She reaffirmed that rail is poised to be a central pillar of the transport infrastructure, urging the need for increased private sector investment as state resources are limited. 'To guide private sector investment in our five priority rail and port corridors, we have just concluded a Request for Information process,' she said. Creecy also confirmed the establishment of the Private Sector Participation Unit at the Development Bank of Southern Africa (DBSA), which will help direct private investment into rail and port infrastructure. On road infrastructure, Creecy acknowledged public concerns, noting that the SA National Roads Agency (Sanral) has taken over 3 099 kilometres of provincial roads at the request of premiers and has reprioritised funding to ensure these roads are maintained. However, she cautioned that Sanral cannot take on further upgrades without overburdening its budget. To strengthen oversight, Creecy announced that R94 million has been allocated to provide technical support to provincial road departments. She also revealed a new Memorandum of Understanding with the South African Local Government Association (Salga) to monitor spending on the Municipal Infrastructure Grant. On the taxi industry, which transports more than 85% of commuters, Minister Creecy emphasised the need for formalisation and the elimination of criminality. 'We are working with banks and vehicle manufacturers to de-risk financing and develop a Standard Operating Procedure for issuing operating licences,' she said. 'A fully integrated transport system lies at the heart of any nation's development. It is the artery through which progress flows, connecting communities, facilitating trade, and enabling access to opportunities. Our responsibility – as role players in the transport sector – is immense.' BUSINESS REPORT
TimesLIVE
16 hours ago
- TimesLIVE
From turbulence to take-off: Transport minister reveals SAA is flying back into profit and expansion
Transport minister Barbara Creecy has painted an optimistic picture of the aviation sector's economic prospects, announcing that South African Airways (SAA) is on track to significantly boost its contribution to the country's GDP and employment. Delivering her department's budget vote speech in parliament, Creecy said a study by Oxford Economics Africa confirmed that SAA contributed R9.1bn to South Africa's GDP in 2023/2024, a figure projected to more than triple to R32.6bn by 2029/2030. 'Over the same period, the airline's operations are expected to support 86,700 jobs, up from the current 25,000, demonstrating its growing role as a national employer and economic catalyst,' said Creecy. Once plagued by allegations of corruption, mismanagement and state capture, the national carrier appears to be staging a dramatic turnaround. 'The airline has concluded three out of four outstanding audits and reported a profit of R252m for the 2022/2023 financial year, which is the first profit since 2012. Now operating independently and no longer reliant on government guarantees, SAA is self-funding its operations and fleet growth, while remaining open to a strategic equity partner as part of its long-term restructuring,' she said. Creecy said SAA is pursuing a 'bold route expansion strategy' to improve intra-African connectivity and global reach. 'New regional routes from Johannesburg and Cape Town aim to boost intra-African connectivity, supporting tourism and trade. The airline has begun a measured fleet expansion to meet growing demand, reinforcing its role as a connector of economies across the continent and beyond. 'SAA is well-positioned to drive economic value through expanded international services, job creation, and increased contributions to tourism and trade,' she said. The airline has also been internationally recognised, being ranked the fourth-best airline in Africa in the 2025 World Airline Awards. In the global rankings, it moved up two places from 69th in 2024 to 67th in 2025 out of more than 325 airlines evaluated. Looking ahead, Creecy said the department expects 42-million passengers and 1.2-million tons of air freight to move through the Airports Company South Africa (Acsa) network by the end of the current political term. To prepare for this growth, she said Acsa has allocated R21.7bn for infrastructure development. 'This will improve facilities for passenger safety and comfort over the medium term and build a new freight terminal at OR Tambo International Airport,' she said. 'In addition, we are fast-tracking projects to ensure reliable availability of jet fuel to all airlines at all our airports, as well as the general upkeep and upgrading of the facilities and technologies at each of our airports to improve security of passengers and cargo, as well as the convenience of airport users.' Creecy also addressed concerns about the Air Traffic and Navigation Services (ATNS), following widespread operational challenges last December. 'I appointed a panel of experts to advise on the root causes of problems at the entity and necessary remedial measures,' said Creecy. In January, the expert team found 'acute shortages of critical staff,' outdated navigation and surveillance systems, and systemic weaknesses in safety management. 'Since February 2025, 37 successful recruitments have been made in key areas including air traffic controllers, investigation and safety specialists, engineering instructors and simulator programmers,' said Creecy. She added the aviation sector is on track to boost tourism, economic growth and job creation.
