Question NW3364 to the Minister of Transport
03 November 2023 - NW3364
Lees, Mr RA to ask the Minister of Transport
Whether, given that the Minister of Public Enterprises did not table in Parliament the annual reports for SA Airways (SAA) for the 201920, 202021, 202122 and 202223 financial years, notwithstanding clause 17(6)(e) of the International Air Services Act, Act 60 of 1993, that requires the International Air Services Council to take into account the financial capability of the applicant (details furnished), the SAA currently has a valid international air services license; if not, why not; if so, (a) on what basis was the financial capability of SAA taken into account by the international air services council and (b) what date was the international air services license issued to SAA?
Reply:
a) The Council was satisfied that SAA (Soc) Ltd is fit and able to operate a Class I international air service based on the supporting/financial information submitted.
The IASC is an independent entity established under the International Air Service Council Act No. 60 of 1993, which specifically governs the regulation of air services, specifically international. Council operates within the provisions of the Act, in considering and continuous monitoring of applications and or licensee’s such as SAA.
Under the Act, one of the considerations taken into account is the financial capability of the airline. Financial resources of an airline are considered to be of the factors in determining whether an airline is capable of providing air services in line with regulations. This includes the airline's ability to finance and operate flights, as well as its capacity to maintain and repair aircrafts, provide on-board services and facilities, and meet other operational costs. The Council has utilized both the management accounts and operational plans to assess the capabilities for the airline to operate or continue operating.
In addition to financial capability, other key considerations considered in licensing include the operational ability of the airline. This encompasses various aspects related to the safety and security of passengers, crew members, and the public. This includes the airline's operational standards, their compliance with regulations, and their ability to maintain and enhance the quality and safety of their service delivery.
Another important factor that may be considered is the route utilization of the airline. This refers to whether the airline operates certain routes and the frequency at which they are operated. The IASC, when considering licensing for an airline may review the current routes and the capacity of the airline to operate those routes.
In summary, the IASC considers a range of factors when deciding on the licensing of an airline, including financial capability, operational ability and route utilization, among others.
b) SAA (Soc) Ltd’s last amended licence was last issued on 13 February 2020 and is still valid.