SAA CEO will pay thousands to charity if plans for airline fail

SAA CEO will pay thousands to charity if plans for airline fail

- The South African Airways is a business running at a loss, but new CEO Vuyani Jarana has vowed to turn it around before 2021

- The Free Market Foundation director Leon Louw has made a bet - If Jarana fails, he pays R100 000 to a charity of his choice

- However, if Jarana succeeds, Louw will be paying R100 000 to a charity instead

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The South African Airways have been running at a loss for some time now. According to reports, the airline suffere losses of R5,5 billion in 2017 - a much, much higher loss than in 2016, which was R1, 47 billion.

But according to reports by TimesLive, the fairly new CEO of the SAA, Vuyani Jarana has made a big promise - By the year 2021 the South African Airways will no longer have any losses but will be running profits. In 2012 was the last time the airline made any profits.

Jarana started as CEO of the SAA in November of 2017, after he had a long career in telecommunications, which included time at Vodacom.

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The SAA is an important part of South Africa's economy. The airline plays a huge role in tourism an drives economic growth through trade. gathered that currently the government's support for the airline stands at R46 billion.

Because of the airlines vital importance to South Africa, the director of the Free Market Foundation, Leon Louw, has made an expensive wager with Jarana.

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If the SAA does not profit by 31 March 2021, Jarana must pay R100 000 to a charity of his choice. However, if Jarana has succeeded in turning the SAA into a profitable business again, Louw will be the one coughing up R100 000 for a charitable donation.

The Free Market Foundation is a public organisation whose aim is to promote an open society with economic freedom and personal liberty. Donations, sponsorship and membership subscriptions finance the organisation.

Louw feels that Jarana should be held accountable for what happens to the SAA and that he should be acting publicly. According to Louw that is how the country will have faith in the airline again.

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Louw challenged Jarana with this wager on Monday morning and on Monday afternoon the airline made a statement and said that Jarana will accept the challenge.

Jarana has three years to make a success of the SAA again - it will not be easy. Louw insisted that the bet between him and Jarana is not a PR stunt, but a way to motivate Jarana to really make a difference.

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