DURBAN - South African Airways plans on cutting back on flights according to internal documents seen by Moneyweb.
It is believed that the airline is reducing the amount of international and local flights by nearly 20% to try to cut operational costs. In total, a proposed 700 flights will be slashed including flights between Cape Town and Port Elizabeth, Johannesburg and Durban.
They are also set to cut down flights that are with in the region to places like Pointe Noir in the Democratic Repulblic of Congo and Libreville in Gabon. SAA has been in trouble, just earlier this year one of their employees manipulated a R13.6 million tender by forging the signatures of senior executives. The employee allegedly benefited financially and even though what she did was a significant offence she was disciplined with a written warning.
Recently SAA was appointed a new CEO, Vuyani Jarana. Jarana who was an executive at Vodacom was appointed by Finance Minister Malusi Gigaba. Gigaba said Jarana helped turn around Vodacom Business Africa, a Vodacom Group subsidiary and he believes taht Jarana would be able to do the same for SAA.
The cut down will have an impact on the employment of SAA who has a staff of about 9900 people. The National Treasury is expected to sell the government’s stake in Telkom in order to bail out SAA. The airline losses a month are approximately R340 million.
- BUSINESS REPORT ONLINE