SAA faces ‘possibly aggressive’ cost cuts in the next three months
Losses must end, says chairwoman Dudu Myeni, but there are no details yet: ‘We are going on a strategy review, we should be able to come up with measurable plans’
South African Airways will initiate a new short term turnaround within three months that could include aggressive cost-cutting, chairwoman Dudu Myeni said on Friday. SAA posted a R1.5bn loss for the 2015-16. Speaking at a briefing following the conclusion of SAA’s 2016 annual general meeting, Myeni said recommendations on the appointment of a new CEO and chief financial officer would be delivered to the Treasury and Department of Public Enterprises in early 2017. "SAA recorded losses of R5.6bn in 2014-15 and R1.5bn in 2015-16," she said. “SAA recorded losses of R5.6bn in 2014/15 and R1.5bn in 2015/16 respectively. Although the airline has reduced its losses, the board and shareholder recognised that the trend of reporting losses cannot persist and that urgent, radical actions are required,” Myeni said. "The focus of the next few years will be returning the airline to financial sustainability." A three-month plan to address finances would include "possibly aggressive" cost containmen...
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