Question NW2810 to the Minister of Public Enterprises
23 November 2023 - NW2810
Shaik Emam, Mr AM to ask the Minister of Public Enterprises
(1) What (a) are the relevant details of the (i) sale of the SA Airways (SAA) fleet to FlySafair and (ii) subsequent leasing of the fleet to SAA and (b) total amount was (i) received for the sale of all aircraft and (ii) paid for leasing the aircraft. (2) Whether any assessment was done on the state of the aircraft; if not, why not; if so, who did the assessment and concluded to sell the aircraft?
Reply:
According to the information received from SAA
(1)(a) The record shows that during Coleman Andrew’s tenure as CEO, the Board on 14 April 2000, considered the sale and leaseback of B737-200 aircraft and approved:
- The sale of 13 B737-200 ADV aircraft (11 passenger and 2 freighters) to SafAir, or a party nominated by SafAir acceptable to SAA.
- That SAA enters a 5 and half year leaseback in respect of each aircraft.
(1)(b) The total amount as per board resolution was.
- Each aircraft sold for USD5.5 million.
- Lease costs were R686 425 per aircraft per month, subject to changes in interest rates and foreign exchange rates.
2. With regards to the assessment of the state of the aircraft, SAA does not have records for answers to this question. Whilst the airline has the resolutions relating to that period (some 20 years ago) the requirement for record retention is limited to 7 years.
Remarks: Reply: Approved / Not Approved
Jacky Molisane P J Gordhan, MP
Acting Director-General Minister
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