SAA sticks to its guns on restructuring | IOL Business Report

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SAA interim chief financial officer Deon Fredericks said the airline’s labour and fuel expenses needed to be reduced, because they were unsustainable. busrep

JOHANNESBURG – South African Airways on Tuesday stuck to its guns on restructuring, charging that the process, which would include culling more than 900 jobs, would save it about R700 million a year.

Fredericks said that SAA increased its fares by 12 percent between January and May last year compared with this year, against a 2 percent increase in passenger numbers.“So, more than 50 percent of costs are in those two items. And with fuel, we cannot do much about it, because it is dependent on the fuel price. So we need to look at all the other areas to make sure we remain competitive,” Fredericks said.

 

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