The Department of Public Enterprises has called on South African Airways (SAA) to reduce its cost base and prepare for a strategic equity partner in the near future.<\/p>\n
In a statement released on Sunday (4 November), the department said its immediate priority is to stabilise SAA financially through a rigorous process of cost-reduction and commercial re-orientation.<\/p>\n
“It is imperative that the executive management apply its mind with clear focus to the immediate task at hand, including addressing the airline\u2019s cost-base, stopping all fraudulent contracts, disciplining and instituting appropriate civil and criminal actions against all persons inside and outside the business who are implicated in corruption, and preparing SAA for a strategic equity partner in the near future,” it said.<\/p>\n
“This is the path to ensure the future sustainability of the airline, the preservation of jobs and for SAA to become a vibrant competitor in the aviation market in South Africa and globally.”<\/p>\n
It added that the recent appropriation of R5 billion in the Medium Term Budget Policy Statement was a further expression of this intent, and would provide a degree of immediate financial stability while the airline\u2019s board and management looked at restoring the airline financially and operationally.<\/p>\n