Vuyani Jarana Is The New CEO Of 'Broke' South African Airways

It comes amid reports the national airline is broke.
The logo of South African Airways.
The logo of South African Airways.
Bloomberg via Getty Images

Treasury has confirmed the appointment of Vodacom group executive Vuyani Jarana as South African Airways' new chief executive officer, reported Eyewitness News.

Finance Minister Malusi Gigaba's spokesperson, Mayihlome Tshwete, said that Cabinet approved Jarana's appointment on Wednesday.

It comes amid reports that SAA has run out of cash and is technically insolvent.

Jarana headed up Vodacom's enterprise division since 2012 and was previously its chief operating officer.

A cashflow analysis given to MPs on Wednesday in preparation for an SAA presentation to Parliament on Friday reportedly shows that the airline is effectively bankrupt.

SAA reportedly went into a negative cash position in July and further deterioration is expected in the months to come. SAA needs a capital injection of R13 billion over three years to survive, Business Day previously reported.

Jarana was supposedly the preferred choice of a number of board members but SAA Chair Dudu Myeni, however had a different candidate in mind, according to reports.

The Sunday Times in June reported that Myeni attempted to halt an SAA board meeting aimed at approving Jarana's nomination.

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