Question NW1238 to the Minister of Public Enterprises

Reply:

I would like to confirm that South African Airways (SAA) has indeed (a) leased aircraft since 1 September 2021. No aircraft have been (b) purchased or (c) otherwise acquired during this period. The details of the leased aircraft are as follows:

SAA has leased a total of 6 aircraft, which include:

1. One (1) Airbus A330-300 (Wide body aircraft) from a reputable lessor:

(i) (aa) Description: Airbus A330-300

(cc) Type: Wide body aircraft

ii) Date received by SAA: 17 August 2021

iii) Lessor: [Lessor name withheld for confidentiality reasons]

iv) Lease cost: Power by the Hour agreement

v) Full terms of lease: [Cannot be disclosed due to confidentiality reasons]

2. Three (3) Airbus A319 aircraft (Narrow Body aircraft) from another well-established lessor:

(i) (aa) Description: Airbus A319

(cc) Type: Narrow body aircraft

ii) Dates each aircraft was received by SAA: 30 March 2022;

iii) Lessor: [Lessor name withheld for confidentiality reasons]

iv) Lease costs: Power by the Hour agreement

v) Full terms of each lease: [Cannot be disclosed due to confidentiality reasons]

3. Two (2) Airbus A320 aircraft from a third reputable lessor:

i) (aa) Description: Airbus A320

(cc) Type: Narrow body aircraft

ii) Dates each aircraft was received by SAA: July 2021

iii) Lessor: [Lessor name withheld for confidentiality reasons]

iv) Lease costs: Power by the Hour agreement

v) Full terms of each lease: [Cannot be disclosed due to confidentiality reasons]

While we understand the importance of transparency and the need to provide comprehensive information, the full terms of the lease agreements cannot be disclosed due to several reasons. The primary reason is the confidentiality and non-disclosure clauses present in the lease agreements signed between South African Airways (SAA) and the respective lessors. These clauses are standard in commercial agreements to protect the interests of both parties involved.

Moreover, the aviation industry is a highly competitive market, and disclosing detailed information on the lease agreements could potentially compromise SAA's negotiation power for future aircraft leases or acquisitions. Revealing such information may expose sensitive financial and strategic data, which could be used by competitors to gain an advantage in the market. By maintaining confidentiality, SAA aims to protect its commercial interests and maintain a competitive edge in the aviation industry.

Additionally, disclosing the full terms of the lease agreements may also inadvertently breach the privacy and proprietary rights of the lessors. Sharing such information could potentially damage the professional relationship between SAA and its lessors, hindering future negotiations and collaborations.

It is important to emphasize that parliamentary questions should not be used as an opportunity to compromise the interests and confidentiality of involved entities. In summary, the full terms of the lease agreements cannot be shared due to the confidentiality clauses in the contracts, the competitive nature of the aviation industry, and the need to protect both SAA's and the lessors' commercial interests. However, we assure you that all lease agreements have been entered into following due process and with the best interests of SAA and the South African public in mind.

Remarks: Reply: Approved / Not Approved

Jacky Molisane P J Gordhan, MP

Acting Director-General Minister of Public Enterprises

Date: Date: