Hon Chairperson, hon Minister, Deputy Minister, hon members and guests, I sometimes find myself listening to people lamenting the state of affairs in the country. They say things like "nothing works, the politicians are all corrupt, there are no skilled people in our municipalities, Malema is pronouncing on things he knows nothing about, crime is out of control, poverty is escalating, people have no jobs and the country is going to the dogs". They further ask me, "Oh shame! Gloria, tell us, is there any hope for this country or are we going the way of Zimbabwe?" I am then able to tell them with great confidence of the oversight visits that we make, particularly to our state-owned enterprises, SOEs, where we find excellence on the ground.
In fact, much of what is happening on the ground is world class. There are challenges, as there are in any other country, but all is not doom and gloom. The ANC pays tribute today to the men and women who work very hard in our state-owned enterprises, helping us to keep the lights on, move people and goods by air, rail, port and road, providing training and jobs, doing research and keeping us connected with all our modern technology and often in difficult circumstances. Is the glass half empty or half full? [Laughter.]
My focus today will be on our airlines, namely SA Airways, SAA, SA Express and Mango. In the SAA 2010 annual report the chief executive officer, CEO, Siza Mzimela, wrote:
To generate the required returns, SAA will focus on achieving sustainable operational efficiencies and maximising the value of the network through improved route, fleet and revenue management. Achieving this will require SAA to continue with an inclusive approach to operating with its alliance partners and its subsidiary, Mango, to support better alignment of schedules and to ensure that the network is serviced by matching aircraft gauge and operator with route distance and demand.
She goes on to say:
SAA accounts for about 38% of international arrivals and about 49% of arrivals from elsewhere on the African continent. We have by far the largest presence in the continental freight market.
Parliament congratulates SAA Cargo, who for the fourth consecutive year has been named the best African Cargo Airline 2011 at the Air Cargo News Awards ceremony held in London in April this year. [Applause.] SAA Cargo transports over 130 000 tons of freight annually and is one of the most profitable divisions of SAA.
SAA has made good progress and its financial performance is positive, showing a 2010 group pre-tax profit of R596 million despite a weak balance sheet.
Much ground has been lost in the quality of service of SAA. The public vote with their feet - there is little loyalty to brands. The ANC has confidence in the new leadership. Parliament will carefully monitor the envisaged turnaround in the quality of service delivery.
SA Express continues to achieve sustainable growth and has implemented the first phase of its African strategy, which is to establish a joint venture airline with Congo Express, mentioned here by the Minister. It is good to see the new-look rebranding which distinguishes it from SAA. Over the past 24 months it has embarked on its own exclusive cadet pilot programme, which has produced eight pilots who are already flying for the airline. The intention is to identify 10 candidates each year.
Mango is SA Airways',low-cost airline and has performed exceptionally well, providing excellent service at an affordable price. The CEO says in her 2010 report:
Despite the strong competition the Mango team has increased market share for the second year running. It will continue making air travel accessible to more South Africans. Mango achieved a pre-tax profit of R18,5 million, a 9% improvement on the previous year.
Mango provides air travel services to an average of 140 000 passengers per month, and since its inception at the end of 2006, over six million South Africans have made use of the service. The CEO recognises that the airline's importance as a fundamental platform for business, trade and tourism cannot be underestimated. This has huge potential for job creation and skills development, which is a top priority for all our state-owned enterprises.
SOEs will not be getting any further funding from the fiscus. The question to the Minister must be: Will SOEs benefit from the R9 billion job funds as well as the R5 billion youth subsidy set aside by government for job creation? If not, Parliament could run the risk of only overseeing the filling of vacancies and not creating new jobs.
South Africa has joined the Brazil, Russia, India and China, Bric, group of emerging countries. It means we are increasingly recognised as the most significant country in Africa where highly industrialised countries seek to do trade on our continent. This means that SAA is uniquely positioned to serve the rest of Africa. It is a world-acknowledged airline brand, which trade delegations and business entrepreneurs will use to access the mineral- rich countries elsewhere on the continent. If we dither, other airlines will jump in. The CEO of SAA has had the wisdom to seize the initiative and we await progress.
SAA has made a significant contribution to the successful hosting of the World Cup. Cheryl Carolus, chairperson of the board of SAA, said in the 2010 annual report:
Beyond the World Cup, SAA looks forward to continuing its collaboration with other key role-players in promoting South Africa as a business and tourism destination. I am sure that our family of 8034 SAA staff will take to the skies to meet the challenge ahead and, by extension, raise South Africa's flag proudly on the global stage.
The ANC certainly supports that. Thank you very much.