Top SAA brass are taking pay cuts, as bleak situation at airline unfolds
South African Airways’ (SAA’s) financial situation is so precarious that the company’s executive are taking pay cuts and GMs will not receive increases‚ Parliament has heard. Finance Minister Malusi Gigaba and the management of SAA painted a bleak picture of SAA’s finances for the standing committee on finance. The airline recorded an almost R1.4bn loss in the first quarter against a budgeted loss of R813m‚ and faces the prospect of more than R6bn in loans maturing at the end of September. The airline has had to negotiate with more than 20 suppliers to pay its July invoices in instalments, as it battles a liquidity crisis. He said the move by the executive to take a 5% pay cut was "commendable"‚ but more needed to be done to "demonstrate to South Africans they are correct to give them their support". Newly appointed CEO Vuyani Jarana will have his work cut out for him. The airline has outlined a bold turnaround strategy it hopes will lead to a profit in the 2019-20 financial year. G...
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