Economy

SA Airways pilots' demands 'justified' as management risks airline's recovery: Analyst

Date: Dec 6, 2024

South African Airways (SAA) pilots, represented by the South African Airways Pilots Association and the National Transport Movement Pilots Forum, are on strike, demanding a 15% wage increase and improved working conditions.

SAA management, however, has countered with an 8% offer, sparking concerns over the airline’s financial stability.

According to aviation analyst Phuthego Mojapele, the pilots’ demands stem from a promise made during SAA’s business rescue process.

At that time, pilots accepted a 30% pay cut to aid the airline’s recovery, with the understanding that the reduction would be restored once SAA stabilised financially. Mojapele asserts that the current demands are reasonable given the pilots' efforts to help the airline regain its footing.

“These pilots chose not to take voluntary severance packages (VSP) and worked tirelessly to support SAA’s revival. Considering their workload, often exceeding the regulatory 1 000 annual flight hours, they are justified in seeking a 15% adjustment,” Mojapele explained.

The strike has disrupted flights and tarnished SAA’s reputation at a critical time. The airline recently reported promising financial results, reflecting its gradual recovery after years of financial turbulence. However, the strike could undermine this progress.

“The market confidence in SAA, which had been steadily improving, has taken a hit,” Mojapele noted. “Competing airlines are benefiting from the unrest, drawing passengers who once preferred SAA. Management should have prioritised reputation preservation and engaged more constructively with the pilots to avoid this situation.”

The broader implications of the strike extend beyond SAA. Disrupted operations have led to increased demand for seats on competing airlines, driving up ticket prices. This, Mojapele warns, will impact not only SAA customers but all domestic travellers.

“As passengers scramble for seats on other carriers, the limited availability will push ticket prices to exorbitant levels. This will hurt the affordability of air travel across the board,” he explained.

SAA’s interim CEO has expressed concerns that meeting the pilots’ demands could trigger bankruptcy, a fate the airline has narrowly avoided in recent years. However, critics argue that management’s approach to negotiations has been counterproductive, risking the fragile recovery of South Africa’s flagship carrier.

Mojapele believes the 15% demand was not excessive and could have been negotiated more effectively. “Management’s inflexible stance undermines the very foundation of the airline’s resurgence. Ensuring a fair deal for pilots while safeguarding SAA’s reputation should have been the priority,” he stated.

The strike sheds light on deeper issues within South Africa’s aviation sector, particularly the balance between labour rights and financial sustainability.

As SAA seeks to rebuild its brand and operations, effective labour relations will be crucial in positioning the airline as a competitive player in the domestic and international markets.

The strike underscores the need for a collaborative approach between SAA management and its pilots to secure the airline’s future while maintaining affordable and reliable air travel for SA.

With flights disrupted and prices soaring, the outcome of this dispute will have far-reaching consequences for both the airline and its passengers.

--ChannelAfrica--

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