South African Airways management has announced that it will take on the challenge of making the state-owned airline profitable in three years’ time.
CEO Vuyani Jarana presented the company’s new strategy yesterday. 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 five-point-five-billion-rand last year. This is much higher than the one-point-four-seven-billion-rand reported in 2016.
South African Airways has launched a 3 year recovery strategy to return the airline to profitability.
The turnaround proposition follows the airlines seven years’ straight losses and liquidity crisis.
S.A.A CEO Vuyani Jarana plans to cut costs by eliminating destination within Africa, 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.