Toulouse, France, 19 June 2002
This is a momentous event indeed! The acquisition of new aircraft by any airline is always worthy of comment, but, in the aftermath of September 11, a major purchase would be considered highly remarkable… or downright madness! Our decision, is, in the true sense of the term, a remarkable and sound one.
SAA's partnership with Airbus for the standardization and renewal of our long-haul and domestic fleets over the next 10 years grows out of sound economic, financial and investment realities. As a result mainly of SAA's limited exposure to the North American market, the airline largely escaped the trauma that many other airlines suffered during the last part of 2001. Furthermore, quite simply, the age and consequent high maintenance and poor economy of our long-haul fleet in particular placed enormous financial burdens on SAA. On top of this, SAA's own financial position has strengthened considerably as well.
A critically important factor for the South African Government is the need for our country to operate a world class, premium airline that offers business and tourist visitors up to date and exceptional service, comfort and reliability. SAA provides important and strategic links to other African destinations, to the Far East and Australia, South and North America, and of course, Europe. We are expanding the number and frequency of flights on a number of these and on some new routes as well. As such, SAA is an important vehicle for the New Partnership for Africa's Development, NEPAD, as it turns mighty oceans into mere ponds, and brings the world into contact with Africa, and Africa into contact with the world.
Specifically, Airbus and SAA are promoting the already strong links between Europe and South Africa. Over the last few years, European countries have partnered with South Africa in the areas of defence, transport, manufacturing and industrial ventures. Germany, Italy, the UK, the Netherlands, the Scandinavian countries and France have built strong bridges with us. Europe's confidence in South Africa as an investment destination is testimony to the strength and depth of South Africa's economic development. The $3.5 list price value of this contract, the largest placed with Airbus from the southern hemisphere, will include an offset value of about 30% of total. It brings job creation, the establishment of new aviation design projects, the expansion of aerospace manufacturing capabilities in South Africa, and support for major industrial projects such as aluminium production. These new partnerships with encourage more contact, longer relations and lasting friendships.
Congratulations to both SAA and Airbus on the achievement of this milestone. We look forward with some excitement to the sight of our new aircraft, dressed in SAA livery, gracing the African skies from the end of this year!