SAA’s cost-cutting plan could benefit its global peers
SAA CEO Vuyani Jarana’s bold plan to lease out pilots rather than lay them off could help plug a global shortage — but the idea has not had a warm reception among all pilots. South African Airways is being buffeted by financial turbulence. One of Jarana’s bold cost-cutting schemes involves leasing out SAA’s pilots and cabin crew to foreign airlines battling a global shortage of flight staff. SA’s flag carrier has been running at a loss for a decade and is grappling with a debt mountain. It lost R5.6bn in 2017-18. "We are concerned about the survival of the airline," said SAA spokesman Tlali Tlali, referring to the dire figures. Tlali said Jarana’s key objective was to protect SAA’s "employees and return to positive financial performance" — in other words, reduce overheads without laying off staff.
The idea of contracting out underused pilots and first officers could be just the ticket. It could also help major airlines avoid cancellations such as those that plagued Europe’s bi...
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