South African Airways is to undergo comprehensive restructuring aimed at a 2.7 billion rand ($379 million) improvement in profitability within 12 to 18 months, according to the South African Press Association. “That [R2.7 billion] is the improvement we need to put this airline into a profitable situation,” chief executive Khaya Ngqula told reporters in Johannesburg on Monday.
The board-approved survival plan would see management cut by at least 30 percent, as well as negotiations on employee working conditions.
The under-performing airline was to be unbundled into seven subsidiaries as stand-alone entities with possible outside equity partners for some of the units.
Other objectives were to dominate domestic and Southern African routes following a R500 million profit having been generated on continental routes in the last financial year.