South African Airways has informed its 5,146 employees that it has just embarked on a restructuring process that can lead to the loss of up to 944 jobs.

The airlines’ interim executive director, Zuks Ramasia, said the airline has begun a consultation process with all employees per section 189 of the Labor Relations Act. Although the process can lead to job cuts, Ramasia said the company hoped to minimize the impact and offer support to those who would be directly affected.

South African Airways “has faced numerous challenges in recent years that culminated in the current grave situation.

“The company’s balance sheet has been historically weak and remains so despite the recent substantial capital injections of the government. Our continued losses and our dependence on government guarantees to borrow money from lenders have increased interest costs that affect the operating cost of the business,” he added.

Ramasia said it is necessary to address “urgently” the current losses that have subsisted in recent years. The scope of the restructuring covers all divisions and departments of SAA and excludes subsidiaries; SAAT, Mango Airlines, and Air Chefs.