Home ECONOMY South African Airways to Reduce Destinations

South African Airways to Reduce Destinations

by biasharadigest

South African Airways (SAA) has announced plans to cut its flights to various destinations, with effect from 29th February 2020.

The affected routes are; Hong Kong, East London, Port Elizabeth, Sao Paulo, Entebbe, Munich, Durban, Luanda, Guangzou, Ndola, and Abidjan.

According to the business rescue team, the move seeks to return the airline to profitability, as well as avoid further funding from the government.

Apart from route cuts, other measures the airlines is trying to implement, so as to increase profits, include incorporation of more fuel-efficient aircraft, contract renegotiation with suppliers, staff cuts, and selling of assets.

Even as this unfolds, Airlink has expressed interest in buying some of SAA’s assets, alongside expanding on those destinations that SAA has cut.

Reuters reports that SAA has received close to $1.35 billion in bailouts in the past three years.

South African Airways is the state-owned flag carrier of South Africa. Its headquarters are in Airways Park at O.R Tambo International Airport. The airline links over 40 local and international destinations across Africa, Asia, Europe, North America, South America, and Oceania. Its base is at Johannesburg International Airport.

The airline has been on the brink of collapse since a crippling strike in November 2019 left it without enough money to pay salaries on time.

See Also:

SAA to Sell Nine Airbus Aircrafts

SAA to Receive $272 Million Bailout

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