The Portfolio Committee on Public Enterprises received a briefing from South African Express (SA) regarding the airlines financial and operational performance.

The last meeting that the Committee had with the SAX concerns were raised about the performance of the company. The Committee welcomed and congratulated SAX on its turnaround strategy and the austerity measures that have been introduced. The Committee said it was happy to see a turnaround strategy with this trajectory and was looking forward to more presentations.

The company strategy is aimed at improving revenue generation, reduce operating costs, address the ageing fleet issue and improve aircraft utilisation, improve corporate governance and internal controls. Briefing the Committee, SAX said the initiatives that have been implemented are starting to show results, the fourth quarter has been profitable compared to the previous three quarters.

In its engagement, members of the Committee pleaded with SAX that proper procurement processes should be followed and implemented when acquisition of new generation aircraft got underway. The Committee noted with concern the unhealthy competition that existed between the three state-owned airlines. The Department of Public Enterprises said the matter was being handled and that an inter-departmental task team had been set up to address the issue.

Chairperson of the Committee, Ms Dipuo Letsatsi-Duba, said the department needed to provide the Committee with shareholder compacts as it was difficult to conduct oversight on entities if the Committee did not know what the agreements were.

Issued by Parliamentary Communication Services on behalf of the Chairperson for the Porfolio Committee on Public Entrerprises Ms Dipuo Letsatsi-Duba