Here’s one for all of those out there who feel like they don’t get the credit they deserve – be it a pat on the back or a few extra rand in the bank.

Despite overseeing a period in which SAA’s losses went from R1,2 billion in 2013 to R2,6 billion in 2014 acting chief executive officer Nico Bezuidenhout is laughing all the way to the bank. His bonus for 2014? Just the miserly sum of R2,8 milion.

It remains unclear as to whether or not that bonus included payments from Mango, his previous employer until February of last year when he jumped ship to SAA. We’ll move on from Nico and his fat payday, looking rather at how SAA have come to haemorrhage money at a rate of knots. IOL covering the SAA Parliamentary report below:

It said the increase in fuel prices, a weak rand and tough competition had contributed to the losses.

“Fuel remains the biggest single expense, accounting for 36 percent (up from 35 percent in 2013) of the group’s operating costs, said the SAA report.

“The continued weakening of the currency has had a significant impact on operating costs, as about 60 percent of the group’s costs are foreign currency denominated, whereas only 40 percent of revenues are earned in strong currencies,” it added.

What will anger many about that lovely bonus is the fact that the SA government pledged a R5 billion guarantee to the airline in late 2013, temporarily bailing the organisation out of a rather deep financial hole. To see the organisation now lining the pockets of a select few who work for them (in the face of a continued crisis) is sure to draw heat.

[source:iol]