SAA to reduce meals, cabin crew

JOHANNESBURG – South African Airways will cut meal service on domestic flights and reduce cabin crew to lower costs at the cash-strapped state-owned airline, a South African newspaper reported on Sunday.

Executives of the airline, one of Africa’s biggest, are expected to consider the proposals next month when they review an outside firm’s plan to save SAA some 2,7 billion rand, the Sunday Times said. The rescue package, put together by Seabury Airline Planning Group, estimates that eliminating food service for domestic economy passengers and “rationalising” meal options for business class flyers would save about 171 million rand, the paper said.The carrier could pocket a further 287 million rand through a careful review of sponsorships, including its backing of the 2010 soccer World Cup in South Africa, and another 60 million rand by using fewer cabin attendants on flights.SAA spokeswoman Sarah Uys refused to discuss the restructuring plan.”These details will only be shared once they have been approved by the board,” Uys told the paper.News of the proposed cost-cutting came amid reports that South Africa’s government had approved a 1,3 billion rand guarantee as the first tranche of a recapitalisation plan for the airline.SAA’s financial problems have mounted in recent years, partly due to increased competition from budget airlines, high fuel costs and, according to critics, inefficient management of its routes and cost structure.SAA expects to have lost more than 650 million rand in the business year just ended.The airline said earlier this month that it wanted to split up the firm and sell some units in an effort to slash costs and return to profit.South Africa’s government has warned SAA that they cannot depend on continual government bailouts.Nampa-ReutersThe rescue package, put together by Seabury Airline Planning Group, estimates that eliminating food service for domestic economy passengers and “rationalising” meal options for business class flyers would save about 171 million rand, the paper said.The carrier could pocket a further 287 million rand through a careful review of sponsorships, including its backing of the 2010 soccer World Cup in South Africa, and another 60 million rand by using fewer cabin attendants on flights.SAA spokeswoman Sarah Uys refused to discuss the restructuring plan.”These details will only be shared once they have been approved by the board,” Uys told the paper.News of the proposed cost-cutting came amid reports that South Africa’s government had approved a 1,3 billion rand guarantee as the first tranche of a recapitalisation plan for the airline.SAA’s financial problems have mounted in recent years, partly due to increased competition from budget airlines, high fuel costs and, according to critics, inefficient management of its routes and cost structure.SAA expects to have lost more than 650 million rand in the business year just ended.The airline said earlier this month that it wanted to split up the firm and sell some units in an effort to slash costs and return to profit.South Africa’s government has warned SAA that they cannot depend on continual government bailouts.Nampa-Reuters