SAA Technical to Source 100% Component Support From AFI and KLM E&M

Paris, Amstelveen, 11 September 2008 – SAA Technical (SAT) signed a component support contract with Air France Industries (AFI) and KLM Engineering & Maintenance (KLM E&M) covering repairs and spares pool access for its entire fleet.

This agreement reinforces relationship already established through component support for SAA Technical six A340-200s. Based on this experience SAA Technical was encouraged to extend its cooperation with the group. Thus SAT rely on AFI and KLM E&M for full component support for its 11 A319-100s, 15 A340-300/600s and 21 B737-800s. The agreement also covers EPCOR, the AFI and KLM E&M subsidiary responsible for maintaining SAA's A340 APUs.

Collective success

The group's ability to meet demand on such a large scale of services and products was an important contributing factor to the successful tender. AFI and KLM E&M proved that they were able to provide the best operational & economical solutions covering the entire spectrum of SAA Technical requirements. Local presence and flexibility of AFI and KLM E&M solutions convinced SAA Technical that it was choosing the best provider at the best price.

Mr. Alain Bassil, Air France Industries President, emphasized that "this agreement outlines already the existing relationship between SAA Technical and AFI and KLM EM and it opens new perspectives for the future. This highlights the synergies available and the efficiency of cooperation between the group's different entities enabling it to deliver a comprehensive solution to a customer like SAA Technical.

Clive Else, Chief Executive Officer of SAA Technical, added: "AFI and KLM E&M delivered very high quality service on the earlier A340-200 contract. On the basis of that experience, it was clear to us that we could again put our trust in them in the framework of this new agreement.

About SAA Technical

SAA Technical is a 100% subsidiary of South African Airways, headquartered at OR Tambo International Airport in Johannesburg, providing a wide spectrum of MRO services to its holding company and more than 40 other airlines. As part of a fundamental restructuring of South African Airways, SAT has examined ways of becoming a low cost producer, which has resulted in a greater focus on outsourcing and economies of scale and the awarding of this and several other contracts for major components.

South African Airways (SAA) is one of the leading carriers on the African continent, consistently receiving the accolade of Best African Airline. Its strategic vision is to be an African airline with global reach. This vision goes hand in hand with the mission of delivering sustainable profits and growing market share by delivering world class service to customers. The airline is solely owned by the South African Government and falls under the Department of Public Enterprises. SAA is the only airline based in Africa which is a member of a global airline network. SAA joined the world’s largest global airline network, Star Alliance on 10 April 2006. SAA had approximately 8,200 employees as of March 2008.

About AFI and KLM E&M

Air France Industries and KLM Engineering & Maintenance, which joined forces following the Air France KLM merger, are world-leading multi-product MRO (Maintenance, Repair, Overhaul) providers with a joint workforce of 15,000, offering comprehensive repair capability, integration expertise, component pool operational support and a powerful logistics network. Together they support more than 900 aircraft and serve upwards of 150 major international airlines.