South African Airways is considering cost cuts including selling some assets, following a refusal by banks to lend any more money to the state-owned company, according to City Press newspaper.

Management is thinking about selling the airline’s catering unit, Air Chefs, and outsourcing or selling SAA Cargo, the Johannesburg-based paper reported, citing an official it did not identify and an internal report.

The company is set to record a 6 billion rand ($419 million) loss at the end of the current financial year, City Press said, citing the internal report. A spokesman for SAA didn’t answer a call seeking comment outside of usual office hours.

Letting Troubled South African Airways Go Bust Isn’t So Simple: Here’s Why

For context: Why Do National Airlines Still Exist?


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Photo Credit: A man cycles past Airbus Group NV A340, left, and A330-200 aircraft operated by South African Airways at O.R. Tambo International airport in Johannesburg, South Africa, on Tuesday, Feb. 24, 2015. South African Airways is close to a 1.25 billion-rand ($107 million) savings target after renegotiating airline leases and supply contracts, canceling two long-haul destinations and reviewing the route of Washington D.C. flights. Waldo Swiegers / Bloomberg