South Africa airline to be split into three – CEO
- 18 Feb 2019 --
South Africa’s struggling state-owned airline is to break into three business units as part of a restructuring plan, its Chief Executive Vuyani Jarana said on Monday.
Jarani said the firm – which has not made a profit since 2011 and was given a 5 billion rand bailout last year to shore up its balance sheet – will be split into domestic, regional and international business units, each with their own management.
Cash injection
The Airways has also secured a much-needed cash injection.
Negotiations are underway to get repayment terms of previous loans extended.
“We appreciate the lenders are proceeding with caution, but they are satisfied with the progress… We will keep operations going on until the end of the current financial year,” said SAA spokesperson, Tlali Tlali.
Meanwhile, SAA will remain a single entity but will be broken into three separate business units as part of a restructuring plan.
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