SAA board was concerned about suggested Mumbia route termination, commission hears

The witness says one of the board’s concerns was why that particular route was being given priority.

At the time, the board was chaired by Cheryl Carolus who testified at the commission last year that former minister of public enterprises Malusi Gigaba had “Mzimela told the commission on Wednesday that the concerns the SAA board had regarding recommendations to terminate the Johannesburg-Mumbai route included the pressure that was being applied so that “a very quick decision” would be taken in terms of terminating the route.

The commission heard that the reasons given that the route should be terminated were that it made a loss and that terminating the route would free up aircraft which could be used for other destinations and that Jet Airways would take over the route and “code share” with SAA. Mzimela said the board at the time also questioned why Jet Airways had been the only airline considered for the code sharing agreement for the route.

This subsequent recommendation noted further that Jet Airways would benefit from the code sharing agreement because it could take passengers from South Africa to South America, impacting on SAA’s potential of growing into that market.Mzimela said Jet Airways had proposed that SAA should not only terminate its operation to Mumbai but also in turn code share with the former airline.

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