SAA gives itself turnaround deadline
The airline has given itself until March to implement a successful turnaround plan to profitability.
JOHANNESBURG -South African Airways (SAA) has given itself until March to implement a successful turnaround plan to profitability.
The airline says the 90-day turnaround plan is supported by Public Enterprises Minister Lynne brown and the newly-constituted SAA board.
The national carrier has relied on state funding until now but Finance Minister Nhlanhla Nene recently indicated that this would stop.
Acting chief executive officer Nico Bezuidenhout says the loss-making carrier is facing solvency issues and that a war Cabinet has been established to bring the carrier back on track.
Spokesperson Tlali Tlali says government will provide guarantees for borrowing.
"That doesn't mean government is going to spend money. However, it will enable SAA to go out in the market in order to secure funding."
The team will meet twice a week and will report weekly to the board.
Competition with cheaper flights has seen SAA struggling to compete with a number of new airlines entering the market.