South African Airways suspends acting CEO

South African Airways Airbus A320. By Rob Finlayson

South African Airways (SAA) has suspended acting CEO Vuyisile Kona, adding to a recent flurry of management turmoil at the Star Alliance carrier. The suspension was effective Feb. 11.

“The board of directors of SAA announces that after careful consideration of recent developments, it has decided to place the acting CEO Vuyisile Kona on precautionary suspension. This is based on certain allegations that have come to the attention of the board, in respect of which the board has a fiduciary duty to investigate,” the carrier said in a statement.

SAA, which declined to provide any further details about the allegations to ATW, added the board has not come to any conclusions about “the veracity or otherwise” of the claims.

This latest upheaval follows a raft of management departuresin late 2012, including the sudden departure of former CEO Siza Mzimela in October last year. Kuna, who was previously SAA chairman, was named acting CEO following Mzimela’s departure, leaving the chairman’s role vacant. Dudu Myeni was named as acting chairman pending the appointment of a new permanent CEO.

SAA’s board is reviewing applications for a permanent replacement. “The board is confident that this process will be completed by March 31, at which time recommendations will be presented to the Minister,” SAA said.

In the meantime, Kuna’s suspension has left the acting CEO’s role temporarily vacant. SAA has appointed Nico Bezuidenhout, who is currently CEO of SAA budget carrier Mango, as an interim replacement.

“The board’s decision to ask Nico to oversee the business in the interim was informed by the need to allow for business continuity, and at the same time to ensure that there is optimal understanding and appreciation of SAA’s commercial challenges within the top leadership of the airline during this transitional period. Nico is a very experienced colleague and airline executive, having been appointed CEO of Mango in 2006. We are very pleased that he agreed to oversee operations and we have every confidence that he will, together with all stakeholders, provide the necessary leadership during this period,” Myeni said.

This latest upheaval comes as SAA struggles to finalize its long-term strategy and faces conflict with the National Transport Movement union, which is seeking recognition at the carrier.

The South African government recently agreed to guarantee $600 million in loans for the carrier.

atwonline.com