South African Airways is exploring funding options for the business and investigating corporate governance failures as part of a 90-day action plan intended to restore the state-owned carrier to solvency.
“SAA is serious about rebuilding commercial sustainability and we will achieve our objectives,” Acting Chief Executive Officer Nico Bezuidenhout said in a statement today. “Tasks completed already include a review of the SAA long-haul international network as well as a re-evaluation of fleet requirements.”
SAA is technically bankrupt and surviving off state- guaranteed loans as an aging fleet and unprofitable long-haul routes contribute to heavy losses. The airline presented a 90- day rescue strategy to the government last year that includes 1.3 billion rand ($113 million) in annual savings, and remains open to selling a stake to an international competitor.
The 90-day plan, details of which were released today, includes six areas of focus. These include: addressing the airline’s liquidity position, an investigation of future funding options, correcting corporate governance failures and reviewing all assets.
Bezuidenhout, the head of SAA’s profitable low-cost carrier Mango, became acting CEO for a second time in November following the suspension of Monwabisi Kalawe, who remains on leave.
This article was written by Chris Spillane from Bloomberg and was legally licensed through the NewsCred publisher network.