SAA to be split into three - TechCentral

SAA to be split into three

Vuyani Jarana

South African Airways will create three distinct business units focusing on domestic flights, pan-African travel and other international routes as the debt-laden airline battles to repair its balance sheet.

The restructuring will not lead to a full break-up of the state-owned carrier, spokesman Tlali Tlali said by phone on Monday. Reuters earlier reported the plan to separate into three divisions.

SAA CEO Vuyani Jarana is under pressure to show he’s making progress turning around the carrier, which hasn’t made a profit since 2011 and has R9.2-billion of debt due at the end of March. Last year, the airline received a R5-billion government bailout to cover looming payments, but it’s unclear if national treasury will stomach another outlay.  — (c) 2019 Bloomberg LP

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