Retention bonuses of more than R70-million in one year helped SAA survive the depression caused by massive restructuring, Chris Smyth, the airline's acting chief executive, told MPs yesterday.

The corporation's policy of paying about 128 key personnel bonuses that would be repayable if they quit had locked in many of its most skilled staff, he said.

The policy made headlines when it emerged that former CEO Khaya Ngqula had been given a retention bonus of R1.3-million on top of his R3.8-million salary and performance incentives.

Ngqula repaid the bonus as part of the R9.3-million termination package he negotiated after he was accused of mismanagement and suspended by the airline.

Smyth said the turnaround programme launched after Ngqula left had delivered savings of R2.5-billion, but included the retrenchment of a third of managers and one in five ordinary staff.

The outgoing SAA chairman, Jakes Gerwel, said the board had decided there should be a retention strategy and it had worked.

The Times