South Africa Airways (SAA) said it may cut over 900 jobs as it moves to stem recurring financial losses. Reuters reported that the state-owned carrier said it had started consultations with its more than 5,000 staff and was talking to labour unions. South Africa Airways has not made profit since 2011 and is grappling with severe funding difficulties and an inefficient and ageing fleet of airplanes.
South African officials have been searching for an investor to take a stake in the airline, but their efforts have so far been unsuccessful. “We urgently need to address the ongoing lossmaking position that has subsisted over the past years. That is why we are undergoing a restructuring,” said SAA acting-Chief Executive Zuks Ramasia. “No final decision will be taken until the consultation process is concluded. However, it is estimated that approximately 944 employees may be affected.” Reuters noted that in a dramatic fall from grace over the past decade, SAA has lost its place as Africa’s biggest airline and a symbol of patriotic pride to become a source of frustration for taxpayers. Analysts have long said its workforce should be cut to bring it in line with regional competitors.
Meanwhile, workers of the airline through the unions are set to begin strike action.
In anticipation of a strike by unions, South African Airways (SAA) has decided to cancel all domestic and international flights for Friday and Saturday.
Unions including Numsa and the SA Cabin Crew Association have served the airline with a strike notice.
They’re unhappy with SAA’s restructuring plans which it announced this week in a bid to keep it afloat.
The airline said that more than 900 jobs could be lost in the process.
SAA has, however, clarified that partner airlines, including SA Express, Mango and SA Airlink would not be affected by the cancellations.
SAA said that the strike would hurt the already cash-strapped airline with estimated losses of more than R50 million per day.
Spokesperson Tlali Tlali: “We do not want to underestimate the impact this particular decision will have on the airline. We operate approximately 104 flights a day and when you look at the revenue that we raise, it is approximately R52 million per day. The strike will have a serious impact financially and operationally on us.”
Tlali added that a late-night meeting to avert a strike was not successful.
