SAA to be split into three units
South African Airways will be split into three business units as part of a restructuring plan.
This is according to SAA CEO, Vuyani Jarana, who was speaking to Reuters on Monday (18 February).
Jarana said that airline will be split into domestic, regional and international business units – each with their own management.
Jarana’s confirmation of the split follows a similar announcement regarding Eskom earlier this month.
As part of his state of the nation address at the beginning of February, president Cyril Ramaphosa said that the national power utility will be split into three units focusing on generation, transmission and distribution.
In January, the embattled state airline secured R3.5 billion from lenders to keep the company afloat until the end of March.
However, it cautioned that it still needs billions more to keep the airline running past that point – with an estimated R21.7 billion needed to implement a three year turnaround strategy.
SAA has failed to make a profit for a number of years, with current forecasts estimating that the airline will only be profitable by 2021 and will incur financial loses of R5.2 billion and R1.9 billion for the 2018/19 and 2019/20 financial years respectively.
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