South African Airways Responds to Irregular Procurement Claims

December 28, 2017

South African Airways (SAA) has rejected claims that it pays more for its supplies than the retail or market price on some of the commodities it procures, calling it false, baseless and misleading. 

 

Comments making rounds on various social media platforms had suggested that the South African national airline procures commodities such as bottled water and fuel at higher prices.

 

In a statement, the airline said it would be foolhardy not to negotiate a best possible price given the high volumes of supplies it procures for its operations.

 

The airline says it procures its supplies and products from a range of suppliers in a manner compliant with its own supply chain policy, National Treasury regulations and other relevant legal laws.

 

"Fuel is an important commodity for SAA as it accounts for approximately 25% of our operating costs. We have to get the best price in the market in order to remain in business. We are comfortable that we are procuring this commodity within a competitive price range.

 

Of course, we will always demand greater efficiency and innovation from all our supply chain partners in order to create a competitive headroom for ourselves in the market." the airline said.

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