SAA charts global comeback with new routes to Europe, US, and Asia

Posted on 29 November 2024 By Tsoku Maela

According to TravelNews, South African Airways (SAA) has unveiled ambitious plans to expand its international route network, signalling a resurgence in the airline’s global presence. Starting next year, SAA will launch flights to major destinations in Europe, North America, and East Asia. This includes Germany, China, the U.S. East Coast, and London by December 2025, according to Bloomberg.

Currently operating with a fleet of 16 aircraft, SAA is preparing for growth by adding seven more planes in 2025 to support its expanded schedule.

Economic Catalyst for South Africa

The expansion comes as a new study by Oxford Economics Africa underscores SAA’s pivotal role in South Africa’s economy. The report reveals that SAA contributed R9.1 billion to the country’s GDP in the 2023/24 financial year, a figure projected to soar to R32.6 billion by 2029/30.

SAA’s operations also support job creation, with 25,000 jobs linked to the airline in 2023/24. This number is forecasted to rise significantly, reaching 86,700 by the end of the decade. Similarly, fiscal revenues generated by the airline are expected to increase from R1.1 billion to R4.4 billion over the same period.

The airline’s influence extends to tourism, with its contribution to the sector estimated at R1.7 billion in 2023/24. This is set to grow to R8.9 billion by 2029/30, emphasizing its role in attracting international visitors to South Africa.

Strategic Growth and Validation

The Oxford Economics report highlights SAA’s role in boosting international trade, tourism, and local supply chains. It also validates the government’s investment in the airline, showcasing tangible returns and projected long-term benefits.

SAA Interim CEO, Professor John Lamola, welcomed the findings: ‘The Oxford Economics Report affirms that the State’s contribution as the sole shareholder in SAA has not been without a tangible return on investment. In turn, the study ventures into a forecast of future impacts derived from SAA’s growth and expansion plans. It is an independent validation of SAA’s current five-year Corporate Plan.’

Future of SAA

As SAA prepares to re-enter competitive global markets, its plans signal a renewed confidence in its ability to serve as a cornerstone of South Africa’s connectivity and economic development. The airline’s revitalization promises far-reaching impacts on tourism, trade, and job creation, solidifying its role as a critical driver of national growth.

 

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