South Africa Airways Case Study

such as Mandela day and other philanthropic programmes) have continued to operate on an informal basis.

Some departments have continued to support CSI programmes within their own operational budgets. For example, SAA Voyager- an airline miles business unit- has continued to support the Reach for a Dream Foundation and Cargo supports various organisations on an ad-hoc basis when it has capacity.

Falling under the communications department, the airline in the past had allocated over the years a formal CSI budget.

Due to pressure from the shareholder for the airline to contribute to the country’s developmental challenges, now there’s talk at board level of bringing back CSI formally and the airline wants to develop a holistic view to CSI to ensure

Shareholder’s Compact entered to by SA government as shareholder and the SAA Board (DATE…):

The purpose of this Shareholder’s Compact is to confirm:

South African Airways’ Mandate

The short-term goals of the Group which will be aligned with the long term goals of the Company;

The Strategic Objectives that will be attained by South African Airways during the period of the Shareholder’s Compact; and

The Key Performance Areas and Indicators to measure South African Airway’s performance during the period of the Compact.

The compact clearly states socio economic development and supporting South Africa’s national developmental agenda as part of the main strategic objectives of the airline

TABLE 1 : STRATEGIC OBJECTIVES OF THE AIRLINE (source EXTRACT FROM SAA SHAREHOLDER’S COMPACT 2013-2016)

STRATEGIC OBJECTIVES OF THE AIRLINE (source EXTRACT FROM SAASHAREHOLDER’S COMPACT 2013-2016)

The Parties agree that the strategic objectives of South African Airways fall into five main areas, namely:

Support South Africa’s national development

South African Airways will endeavour to support South Africa’s national development agenda and will engage the Shareholder in all instances where support would compromise the ability to achieve its Mandate or any other Strategic Objective.

The parties also acknowledge that skills development, job creation (not necessarily direct jobs in South African Airways, but through the catalytic demand effect of its operations e.g. supply chain) are important. This would not preclude the collaboration with other State Owned Companies.

Support key South African state policies (such as National Development Plan, New Growth Path, Airlift Strategy and the Integrated & Sub-Sector Charters of Transport) through its strategic and tactical decisions.

TABLE 2 : SOCIAL IMPACT STRATEGIC DELIVERABLES AS OUTLINED IN COMPACT:

Key Performance Area Key Performance Indicator Unit of measure