The future of the debt-ridden state-owned enterprise, South African Airways (SAA), has been a concern after government claimed that it can’t afford to give any more financial assistance to the national carrier.
There are conflicting views as to what strategies will be effective in resolving the SAA’s financial burden. Minister of Finance Tito Mboweni has suggested that it be closed or privatised while Minister of Public Enterprises Pravin Gordhan believes otherwise.
According to SAA CEO Vuyani Jarana, the challenges lie on the commercial section of the SAA whereas it is still fairly functional in its operations.
“We will achieve break-even point in 2021 by just focusing on revenue stimulation, taking out costs. We did share with the shareholder and South Africans that to do that, it’s going to take a lot more funding,” says Jarana.
The new board is also looking at forensic reports to address the corruption which has led the airline to its financial woes.
Watch the full interview below:
