SAA might shed 2 232 workers to cut costs

JOHANNESBURG – State-owned South African Airways could shed up to 2 232 employees in a bid to cut costs as it seeks to return to profitability, the firm said on Wednesday.

The airline was seeking to save 638 million rand in labour costs and the exact number of lay-offs could depend on negotiations with unions, SAA Human Resources Manager Bhabhalazi Bulunga told a news conference. “We have to save 638 million rand and this many (2 232 job losses) could move downwards through the renegotiation of service conditions,” he said.The troubled airline announced a restructuring plan in June in an effort to return to profitability within 18 months.In June, the airline said it planned to spin off non-flight operations into seven subsidiaries, which was expected to result in a 2,7 billion rand turnaround over the next 12 to 18 months.South Africa’s public enterprises minister said in January an initial public offering of SAA could be years away and that the government had no plans to bail out the struggling airline.SAA posted an operating loss of 603 million rand in the financial year to March, compared with a profit of 425 million rand in the previous year.Nampa-Reuters”We have to save 638 million rand and this many (2 232 job losses) could move downwards through the renegotiation of service conditions,” he said.The troubled airline announced a restructuring plan in June in an effort to return to profitability within 18 months.In June, the airline said it planned to spin off non-flight operations into seven subsidiaries, which was expected to result in a 2,7 billion rand turnaround over the next 12 to 18 months.South Africa’s public enterprises minister said in January an initial public offering of SAA could be years away and that the government had no plans to bail out the struggling airline.SAA posted an operating loss of 603 million rand in the financial year to March, compared with a profit of 425 million rand in the previous year.Nampa-Reuters