JOJANNESBURG– South African Airways has announced that it will take on the challenge of making the state-owned airline profitable in three years’ time.
The airline’s chief executive officer, Vuyani Jarana, said this when he presented the company’s new strategy here Wednesday.
The national flag carrier is in a much deeper financial crisis than previously thought. In March, Auditor-General Kimi Makwetu reported that SAA had suffered losses to the tune of 5.5 billion Rand (about 433 million US dollars) last year, much higher than the 1.7 billion Rand loss reported in 2016.
SAA has launched a three-year recovery strategy to return the airline to profitability, following seven straight years of 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 said the airline needs 21.5 billion Rand to cover debts and working capital to break even by 2021.
Source: NAM NEWS NETWORK