John Lamola, Chairman & CEO of South African Airways
On Tuesday, January 24th I had the privilege to interview Professor John Lamola, Executive Chairperson and Chief Executive Officer of South African Airways. He has more than 27 years of experience in the aviation industry where he was CEO at Denel Aviation from 1996-2001. Professor Lamola also served on the Board from 2012-2017 of Airports Company South Africa (ACSA). Additionally, he is an Associate Professor of Philosophy of Technology at the University of Johannesburg. This interview has been edited for length and clarity.
Joshua Kupietzky: What is your background in the aviation industry?
John Lamola: I joined the aviation industry in 1996 through an MRO [Maintenance, Repair and Operations] company on the continent of Africa called Denel Aviation. I was employed as the corporate affairs manager with the responsibility of ensuring that the general public could understand what air transportation is all about. Soon thereafter, I became the Chief Executive Officer of the organization. Beyond that, I went to Embry-Riddle Aeronautical University in Florida where I studied airline management and obtained an MBA. I then became an aviation consultant, and I served on the board of Airports Company South Africa (ACSA) where, until last year, I focused on the infrastructure development of airports in South Africa and the entire continent of Africa. In 2021, I was appointed to the board of South African Airways as the chairperson and, from early last year, as the Chief Executive Officer. I’ve been generally interested in aviation over the years as an academic in technology and the internet as well as its function in the transport industry.
JK: Since the restart/existing business rescue in September 2021, how do you feel South African Airways has done since that point?
JL: We started the airline in September of 2021, and we have done well. There were some threats of “headwinds” within South Africa, such as the Omicron variant of COVID-19 during December of 2021. This led to a partial grounding down of our operations. We started with a company that was emerging from bankruptcy protection, which here in South Africa is called business rescue. Using a very careful strategy of meticulously chosen routes, we built that gradually in order to insure that we would be profitable with a very robust inventory planning management system. As a result, we have done well. We started with seven aircraft, and we are currently flying 11 aircraft that are utilized to the maximum. We have been able to grow our route network. By December 2022, the industry in South Africa has recovered to about 80% of its pre-COVID levels, which has sustained us well.
JK: Before COVID and before declaring bankruptcy, SAA operated 4 A350s. Do you think these aircraft will return to service and resume long-haul routes to cities such as New York and London in the near future?
JL: South African Airways is a national carrier, as we will say, and it has a mandate to ensure that South Africa has a wide body long haul capability and reach. We are continuously studying our domestic, regional, and intercontinental roots, and we have a plan for the coming year, beginning with our current situation in 2023. There is a bit of confusion between the calendar and our financial year. Our first quarter starts from the 1st of April. Therefore, in our second quarter, we will be launching our international routes strategy. And in terms of equipment, we previously flew the Airbus A350, but our actual fleet strategy as an airline, of course, is gradually being reviewed. We will see what kind of equipment will best meet long haul routes that are targeted. We will decide if a Boeing or an Airbus will be used, but those decisions are still to be finalized.
JK: How do you view the main changes that have come about in the aviation sector because of the pandemic? What do you see as the main lessons that indicate things must change significantly for the benefit of South African Airways and the wider aviation industry?
JL: A major takeaway is that the airline industry is very fickle as it is excessively exposed to external threats that are largely out of the control of any airline leadership or planners. There have been a number of disruptions to the industry, but they have all been quickly located. However, the Covid 19 pandemic was the first large-scale global threat that froze the entire airline operation network. I believe it has given the industry a risk-management sensitivity that is going to enable us going forward to plan for possible risks in the world that we live in today. We now plan for possible disruptions. Risk management is now key in the airline industry.
JK: South African Airways, like all carriers, has retooled its network since the start of the pandemic. What has worked and what hasn't? Do you see your network targeting more business or VFR (visiting family and relatives) travelers as you continue to emerge from the pandemic? What lessons has the pandemic taught you about its network and the mix of leisure and business travel?
JL: Of course technology has changed business travel patterns. Leisure travel is what all of us are currently focusing on. But besides leisure travel, of course, the VFR has been the bread and butter in the startup phase as people are reconnecting, and there is pent-up leisure travel. Going forward, there has to be a balance, among the three types of travel [business, leisure, and visiting family/relatives], and that is our strategic focus. Here in South Africa, we also have a very interesting continent where there is medical tourism, religious tourism, people traveling on pilgrimages, ect. This is a niche market that we are targeting. Another focus is one leg of our business - our charter business.
JK: There are many untapped aviation markets throughout the African aviation market. Do you plan on tapping into those underserved markets, or do you plan on sticking with your bread and butter routes?
JL: The African aviation market is a challenge but also a huge opportunity. It is well known that the African aviation market share of the global travel industry is around 1% currently. There are a number of reasons for that: infrastructure, regulation issues, etc. South African Airways is well poised because of the position of South Africa on the continent, hence South African Airways had a marketing slogan of “Bringing the world to Africa, taking Africa to the world.” However, we are focused on the position of South African Airways as a global brand. Hence, South African Airways is a member of the Star Alliance Network, and we are looking beyond Africa as such.
JK: Have you seen more of your Star Alliance member carriers serve the African continent with the increase in travel demand to destinations in Africa? I know United recently started flights between Newark and Cape Town. Have any other Star Alliance member carriers also begun flying to the continent?
JL: I would not say it increased as such. The new services are good and encouraging, in particular, with United. We have other carriers besides United serving the continent. We have Lufthansa, Egyptair, Ethiopian Air now, of course, both are African based. Overall, the increased service is very encouraging, and for us it has the knock-on benefit of easier connectivity for our passengers.
JK: Since restarting, South African Airways growth certainly has been profound. During your tenure, which global airline from a competitive standpoint has, or still does, concern you the most? And, do you feel the growing low-cost market threatens SAA?
JL: The low-cost market is not a threat particularly in our domestic market. South African Airways has differentiated its offering very clearly. In terms of the international airlines, like all African airlines, we are concerned about the reach of Gulf Airlines' substantial connectivity. They are very well resourced and can penetrate the African market very easily. However, South African Airways is very strong in operating the peculiarities of Africa. There is also, of course, a healthy intercontinental competition that we enjoy from Ethiopian Airlines and from Egyptian Airlines. We have partnerships to offset that within the African market, Kenya Airways and others.
JK: What do you consider your greatest achievement in the airline industry?
JL: Within the South African contest, the achievement has been to simply demonstrate to people that aviation is an accessible career option for everyone. This is especially true given the sad history of South Africa’s racial discrimination in which black people, and particularly black women, were not encouraged to participate in the airline industry. As a result, some of us who entered the industry about two decades ago were pioneers and the first to receive leadership positions in this industry as well as being able to do so as professional aviators.
JK: What do you anticipate happening to the airline industry in the next decade. What would you like to see happen?
JL: There is a challenge of environmental sustainability that is facing the industry. It is going to bring us a cost overload, and I just hope that those costs will not be transferred to passengers or travelers. On the other hand, this environmental consciousness may dampen people's willingness to fly where air travel may be seen as an expensive mode as well as to consider the higher carbon footprint created by going on leisure events. That's a threat. But, on the positive side, we're going to see more consolidation in the industry. There are a number of challenges coming from within the food chain of the industry, starting with the original equipment manufacturers. There are challenges faced by established companies such as Airbus and Boeing during these times of technological and geopolitical tensions, with shortages of spare parts and such things in the coming five to ten years.
JK: We started this interview talking about your background in the aviation industry. What advice do you have for young people trying to start a career in the aviation industry?
JL: The aviation industry is the most fascinating industry. It is an industry for the world. If you want to not only see the world but also understand how the world operates, this is the industry to be in. The airline industry exposes one to the intercultural nuances that make up the market. It's an exciting industry in which one can never get bored.
