South Africa: SAA CEO Jarana Resigns, Placing SAA's Turnaround Plan in Question

A South African Airways plane.
analysis

Not again. Not another one. SAA CEO Vuyani Jarana has resigned, becoming the eighth SAA CEO to resign in the space of six years, raising the question of whether the airline is now so run down from years of mismanagement and corruption that it's possible to save it at all. And there is the niggling issue of whether government even wants to save it.

The board of SA's flag-carrier airline SAA has confirmed that it has accepted the resignation of its CEO Vuyani Jarana, a move sure to reopen a fractious debate about whether the airline is saveable and add fuel to the broader burning question about whether State intervention can save commercial operations in distress.

SAA Jarana now becomes the second CEO of a SOE to resign in a matter of weeks, after Eskom CEO Phakamani Hadebe, who announced his resignation on May 24. Although the reasons given by the two CEOs are somewhat different, there are also significant overlaps, with both CEOs complaining about the difficulty and inflexibility of operating within government's bureaucratic strictures.

In the SAA case, Jarana's resignation is spiked by a furious resignation letter leaked to Fin24 in which he blasted government for a grand...

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