SAA to restructure into 3 units
STRUGGLING SAA yesterday announced plans to restructure itself into three business units for domestic, regional and international services.
The split was communicated by SAA chief executive Vuyani Jarana in a briefing to stakeholders.
SAA spokesperson Tlali Tlali denied reports of an unbundling of the airline, sparked by Jarana’s remarks.
“A part of the message was lost in translation if you like… it is essentially about the evolution of our operating model,” Tlali said in an interview.
He said it meant there would be an internal reconfiguration of resources aimed at bringing more efficiency and accountability, and debunking the notion that the airline was a loss-making company that lacked any “precision management”.
SAA received considerable financial support from government during the course of the year to prevent if from defaulting on loan repayments.
It was given a R5 billion lifeline in the medium-term budget policy statement in October, but said that it needed R21 billion over three years to enable it to break even by 2021.
The carrier last turned a profit in 2011.