Sangoma wanted
SAA boss needs a new sangoma to help in fuel crisis
May 18, 2008
By Edwin Naidu
Khaya Ngqula, the SAA chief executive, must change sangomas. When economists warned the price of oil was rising and forecast to break the $100 (R763) a barrel barrier, the airline budgeted for oil at $65 a barrel.
No surprises to hear on Wednesday that soaring oil prices, which peaked this week at $125 a barrel, cost SAA R950 million. Someone at SAA got it hopelessly wrong but there was some good news. Ngqula says the airline's fuel levy on ticket fares had enabled SAA to make up for the extra it paid for oil. So, passengers paid for someone's blunder.
As head it is not for Ngqula to simply explain away such a substantial loss, blaming factors beyond SAA's control, when he ought to be tackling the inept in-house forecasters who obviously struggle with budgeting. But he will not.
If the track record of much-ado-about-nothing Alec Erwin, who, as minister of public enterprises has political responsibility for the airline, is anything to go by, Ngqula must be preparing a hefty bonus for his officials who cannot budget for a crisis.
Article from Business Report here.
May 18, 2008
By Edwin Naidu
Khaya Ngqula, the SAA chief executive, must change sangomas. When economists warned the price of oil was rising and forecast to break the $100 (R763) a barrel barrier, the airline budgeted for oil at $65 a barrel.
No surprises to hear on Wednesday that soaring oil prices, which peaked this week at $125 a barrel, cost SAA R950 million. Someone at SAA got it hopelessly wrong but there was some good news. Ngqula says the airline's fuel levy on ticket fares had enabled SAA to make up for the extra it paid for oil. So, passengers paid for someone's blunder.
As head it is not for Ngqula to simply explain away such a substantial loss, blaming factors beyond SAA's control, when he ought to be tackling the inept in-house forecasters who obviously struggle with budgeting. But he will not.
If the track record of much-ado-about-nothing Alec Erwin, who, as minister of public enterprises has political responsibility for the airline, is anything to go by, Ngqula must be preparing a hefty bonus for his officials who cannot budget for a crisis.
Article from Business Report here.