Business Report Economy

SAA plans to halt new 777s order

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Cape Town - South African Airways is engaged in negotiations with Boeing which could involve the substitution of other aircraft for the four long-range 777s the airline has committed itself to buying.

A team from Boeing visited SAA last week, and Coleman Andrews, the airline's CEO, will go to Seattle in the next few days for further discussions about the composition of SAA's fleet.

He will discuss the matter ahead of any final agreement, but informed sources say that SAA's needs have changed since a firm order was given for the 777s three years ago. At the time SAA was concentrating on a long-haul fleet to serve international destinations.

Now SAA has reached agreement in principle with Lufthansa, Singapore Airlines and Swissair that they will carry its passengers on to destinations in Europe and Zurich, while SAA carries their passengers on from Johannesburg to other parts of this country and sub-Saharan Africa.

Details are still under negotiation, and the allies have shown reluctance to stop flying to Cape Town, which is South Africa's most popular tourist destination. Implementing the plan will mean that SAA's needs for long-range aircraft will lessen but it will need more short- and medium- range aircraft.

Both Boeing and Airbus Industrie could supply aircraft for SAA's changed needs. Andrews has had discussions with both and has looked into leasing aircraft from other airlines.

Meanwhile SAA is due to bring back its newest Boeing 747-400, to be based on the London-Miami routes, on December 23.

Unlike earlier deliveries, it will arrive without fuss. Andrews has decided against spending money on flying Transnet directors and business associates to come back in the new plane, as has traditionally been done.