Airlines Business & Finance News

Bankrupt South African Airways cuts routes

South African Airways

South African Airways announced its restructuring plans to steer the airline out of bankruptcy. Which includes canceling unprofitable routes, reducing its domestic network, and job cuts. The changes must be approved by regulators before they are implemented.

The state-owned carrier is canceling flights from Johannesburg beginning February 29th.

The domestic network will be scrapped almost entirely, leaving only a few destinations.

“These measures will strengthen SAA’s business. We believe it will give security to our most loyal customers that we are heading in the right direction. We are focused on our goal of recovering the financial health of SAA and creating an airline that South Africans can be proud of,” they said.

Regarding job cuts, they said that “it is our intention to restructure the airline and keep as many jobs as possible. That will help us create a platform for a sustainable future. But unfortunately, a reduction in the number of employees will be necessary.”

2011 was the last year SAA made a profit, and since 1994 it has received financial bailouts worth USD 3.8 billion.