John Lamola has been officially appointed group chief executive of South African Airways, a move met with controversy over alleged political bias. The Democratic Alliance criticized the integrity of the appointment process, suggesting favoritism. Despite objections, Lamola’s leadership is seen as crucial for SAA’s recovery and financial stability, with the airline aiming for significant revenue growth in coming years.
The South African government has appointed John Lamola as the permanent group chief executive of South African Airways (SAA) after serving in an interim capacity for nearly three years. This decision has sparked controversy, particularly from the Democratic Alliance, the country’s second-largest political party, which claims Lamola’s appointment raises concerns regarding transparency and potentially favors the African National Congress due to political motives.
The Democratic Alliance has indicated intentions to seek access to meeting minutes related to the decision-making process. They argue that the SAA board initially favored Allan Kilavuka, the chief of Kenya Airways, suggesting that the selection might have been politically influenced rather than based on merit.
Transport Minister Barbara Creecy, responsible for SAA as the shareholder minister, has defended the decision-making process. She clarified that she was presented with three candidates to consider for the position and expressed hesitation toward one candidate because of concerns related to non-South African citizenship and security clearances.
Minister Creecy stated that consultations occurred with President Cyril Ramaphosa regarding how to best support both the SAA board and the government, emphasizing that these discussions did not amount to interference in the selection process. Ultimately, two candidates were interviewed, with Lamola deemed the most suitable for the role based on various considerations.
Since taking the interim role in May 2022, Lamola has been pivotal in SAA’s recovery from business rescue in 2021, implementing strategies to improve operations following failed privatization attempts. The airline notably reported its first profit in nearly a decade for the fiscal year 2022-23 and has expanded its fleet and operational reach, employing around 2,000 personnel.
SAA has expressed that Lamola’s permanent appointment represents a critical moment for the airline’s financial stability, claiming his leadership will foster governance continuity. Looking ahead, SAA projects significant revenue growth for the government, expecting R4.4 billion ($238 million) by 2029-30, a marked increase from R1.1 billion in 2023-24.
In summary, John Lamola’s appointment as the group chief executive of South African Airways has generated controversy amid claims of political influence and concerns about the transparency of the selection process. Despite the dissent, Lamola’s leadership is viewed as instrumental to SAA’s recovery and future profitability. The ministry highlights that proper processes were followed in reaching this decision, stressing the importance of stability and effective governance for the airline’s operations.
Original Source: www.flightglobal.com
