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SAA reveals plans to revive the failing airline

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South African Airways has announced that it will take on the challenge of making the state-owned airline profitable in three years’ time. SAA CEO Vuyani Jarana presented the company’s new strategy earlier Wednesday.

The national airline is in a much deeper financial crisis than previously thought. In March, Auditor-General Kimi Makwetu reported that it had suffered losses to the tune of R5.5 billion last year.

This is much higher than the R1.7 billion reported in 2016.

SAA has launched a three year recovery strategy to return the airline to profitability. The turn-around proposition follows the airlines seven years’ straight losses and liquidity crisis.

Jarana plans to cut costs by eliminating destinations within Africa and offering surplus pilots and cabin crew to major global carriers. Jarana says the airline needs R21.5 billion to cover debts and working capital to break even by 2021.

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