The South African Airways (SAA) Chief Executive Officer (CEO), Vuyani Jarana, announced that the national airline would be changing its operating model in efforts to reduce its massive debt.
Guy Leitch, Editor of SA Flyer magazine, says the changes will not be an easy process as SAA has to incorporate unprofitable routes for the sake of feeding clients into its international routes.
“It’s still very much in the balance as to whether it’s got enough cash to operate going forward. The simple truth is that it hasn’t at this stage because it’s got R9.6 billion worth of debt renewal or rollover coming up at the end of March. We don’t know at this stage whether it’s going to be able to replace those loans,” says Leitch.
Leitch says the expectation is that the SAA might still seek bailout from the government.
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