TURNAROUND STRATEGIES
SAA CEO mulls cutting staff and testing the market
National airline CEO Vuyani Jarana expects an announcement 'soon' on a roadmap for the introduction of strategic equity partners
Staff rationalisation at South African Airways is a necessity and the airline has been talking consistently with trade unions on the need for SAA to reorganise itself, CEO Vuyani Jarana said in Parliament on Thursday. However, he said the decision on rationalisation would depend on the finalisation of a clear operational structure that would determine the staff numbers required. “Unless we address the cost base we will not be successful,” Jarana stressed during a briefing to Parliament’s finance committee on SAA’s fourth-quarter results for 2017-18. He said the priority over the past six months was to ensure job preservation through outsourcing and contracting out some of SAA’s staff to other airlines “to soften the blow”. Jarana told the committee he had “been doing roadshows to major airlines, enticing them to actually contract our pilots so that when we grow again we can go and fetch them”. Addressing the process of securing a strategic equity partner, Jarana stressed that time w...
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