NATIONAL NEWS - South African Airways (SAA) has released a statement denying reports that it will be splitting into three separate entities.
Spokesperson Tlali Tlali said the airline’s CEO, Vuyani Jarana, was misinterpreted by media, and was just talking about how the operating model at the company will be changed, rather than indicating that the business as a whole will face restructuring.
“We are not looking at a situation of breaking up the airline,” Tlali said.
“SAA as an airline remains, but the manner in which it conducts business will be aimed at bringing in more business and create accountability in terms of operations,” he continued.
EWN led reports this morning that the airline will be splitting into three separate entities, responsible for handling their domestic, regional, and international flight routes.
Jarana was believed to have announced this, and appeared to say that each unit will have independent management, but his comments were misunderstood, according to Tlali.
The struggling airline was bailed out by the government last year, with R5 billion allocated in the medium-term budget policy statement (MTBPS) to help it face a looming debt crisis.
The airline currently has R19.1 billion worth of government guarantees, of which R14.5 billion has been used and in March next year, one billion of this will be maturing.
