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SAA's plan to save R2bn | IOL Business Report

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South African Airways is renegotiating favourable terms on existing contracts with its suppliers while sourcing better terms on new procurement spend. busrep

JOHANNESBURG - South African Airways is renegotiating favourable terms on existing contracts with its suppliers while sourcing better terms on new procurement spend, including for fuel and ground handling, which would cumulatively save it nearly R2 billion.

This as the cash-strapped national carrier locked horns with labour unions at the Council for Conciliation, Mediation, and Arbitration on Saturday following a crippling strike over wage dispute and planned job cuts. The unions have accused SAA of purging more than 900 workers to save R700 million instead of the lion’s share of its R25bn annual procurement spend is wasted on grossly inflated, irregularly negotiated contracts.

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