South African Airways (SAA) has appointed John Lamola as its permanent Group CEO (GCEO), with the SAA Board and Cabinet signing off on the move.

The decision, announced on Thursday, ends Lamola’s nearly three-year run as interim CEO since May 2022, cementing his role at the helm of the state-owned airline.

The SAA Board, led by interim chairperson Derek Hanekom, hailed Lamola’s appointment as a “turning point” for the airline’s long-term financial health.

“The SAA Board is delighted to be able to appoint a solid and dedicated leader well versed in SAA’s fortunes and eager to continue overseeing its take-off into better skies,” Hanekom said.

"We wish Professor Lamola and SAA safe flight into an even brighter future” he said.

The appointment of a permanent CEO is significant after SAA's turbulent flight to calmer skies.

SAA was placed into business rescue on December 5, 2019, over five years ago, as it faced mounting financial losses and relied heavily on government bailouts, with Covid-19 national shutdowns decimating the aviation sector. The controversial Takatso Consortium deal, announced in June 2021, collapsed on March 13, 2024, due to disagreements over a revised valuation—SAA’s business was pegged at R1 billion and its property at R5 billion—prompting both parties to trigger a mutual termination clause amid changing market conditions post-Covid. Now, SAA is back to full state ownership.

Transport Minister Barbara Creecy confirmed Cabinet’s approval on Wednesday, February 26, 2025, following a selection process.

Lamola’s interim tenure saw SAA post a R252 million net profit in the 2022/23 financial year, its first since 2012, with revenue soaring to R5.7 billion from R2bn the prior year.

The airline expanded from six destinations in 2021 to 16 by January this year, growing its fleet from six aircraft to 20, including two Airbus A380s. Staff numbers at group level rose from 800 to about 2 000 by November 2024, including 140 pilots.

The Board said these gains under Lamola’s watch prove his skill to steer SAA as a viable regional, continental, and global player.

Creecy detailed the appointment process, triggered in September 2024 when Hanekom briefed her on a recruitment drive for the GCEO role.

The SAA Board later submitted three appointable candidates, ranked by a selection panel’s scores from interviews and competency tests. The top pick was a non-South African CEO of another African airline, with Lamola also on the list. Creecy raised concerns about appointing a non-citizen, citing a past case in her portfolio where a foreign CEO failed to secure maximum security clearance due to citizenship issues.

Hanekom advised Creecy that all candidates were appointable, leaving the shareholder to pick the best fit. After narrowing it to two candidates—both deemed experienced and qualified—Creecy sought President Cyril Ramaphosa’s guidance. He recommended she and Deputy President Paul Mashatile interview the pair to settle the choice, given SAA’s weight as a state entity and the sensitivity of a non-South African option.

“This was to support both the Board and the Shareholder to conclude the process and bring stability to SAA and did not constitute any form of interference,” Creecy said.

The interviews, conducted as a government process, led Creecy and Mashatile to agree Lamola was the stronger pick for SAA’s financial stability and growth.

“As a member of the Cabinet I deeply support the objective of building a strong, capable and ethical public service,” Creecy said, defending her track record on appointments. She expressed regret over leaks of candidates’ personal details, saying, “No professional person should have to read their confidential information in the public domain.”

Lamola’s CV bolsters the Board’s confidence. He ran Denel Aviation as CEO from 1996 to 2001 and sat on the Airports Company South Africa Board from 2012 to 2017. He’s managed a private equity portfolio with aviation and tech stakes, holding a PhD from Edinburgh University and an MBA from Embry-Riddle Aeronautical University in Florida.

The airline’s turnaround under Lamola includes wrapping up three years of overdue audits and posting profits in 2023.

An Oxford Economics Africa study, commissioned by SAA, pegged its 2023/24 gross value add to South Africa’s GDP at R9.1bn, forecasting R32.6bn by 2029/30. Jobs tied to SAA’s operations -direct and indirect - are set to rise from 25 200 in 2023/24 to 86 700 by 2029/30, with government revenue climbing from R1.1bn to R4.4bn over the same span.

Hanekom added, “Professor Lamola can now continue growing SAA with confidence, knowing that he has the full support of the SAA Board and its shareholders.” Creecy echoed this, thanking Lamola for his “hard work and dedication” and wishing him success as GCEO. SAA’s full financial results remain pending, with no release date specified beyond the audits noted.
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