South African Airways acquires 10 Airbus jets

South Africa’s embattled national carrier has signed a deal for 10 new jets to renew its fleet in a push to re-energise its operations, the parastatal company announced Tuesday.

South African Airways (SAA) will acquire the A320-200 aircraft in a 12-year sale and leaseback deal brokered by UK banking firm Standard Chartered, said the carrier’s CEO Monwabisi Kalawe.

“The aircraft will be delivered over the next two years, with the first two deliveries taking place in July this year (2013),” said Kalawe.

The new planes will modernise state-held SAA’s fleet and save on fuel, he added.

“The Airbus A320-200 aircraft are central to SAA’s plans to provide an efficient and comprehensive regional route network.”

Standard and Chartered’s aviation finance filial Pembroke will own and lease the planes.

Mismanagement and operation losses have sent the carrier limping from one financial crisis to another in recent years.

In May it borrowed $170 million under a state guarantee to cover operation costs.

The airline recently submitted a 20-year turnaround plan to the South African government — its 10th in 13 years — detailing ways to steer it back to profitability.