SAA confident about strategic path
This week, South African Airways (SAA) is completing 60 days of its 90 day action plan that began last year. The scheme is a roadmap to return the carrier to relative stability and to full implementation of its broader turnaround plan - the long-term turnaround strategy.
Recent and planned network configurations stand to positively impact SAA in the region of ZAR 600 million (USD 51 million) per annum; the genesis being the culling of loss making direct flights between Johannesburg (South Africa) and Beijing/Mumbai without sacrificing connectivity through deepened commercial relationships with a number of Gulf state and other carriers.
SAA has also renegotiated fleet lease re-extensions of three of its A340 aircraft (photo), representing a positive impact of ZAR 112 million (USD 9.5 million) annually. Further five aircraft lease extensions and renegotiations are expected to yield additional savings in excess of ZAR 150 million (USD 12.8 million) later in the year.