SAA to be split into three, CEO Vuyani Jarana announces

South Africa

State-owned SAA that has been struggling will be broken into three business units as part of a restructuring plan, CEO Vuyani Jarana say

On Monday, Jarana said the firm, which has not made a profit since 2011 and was given a R5bn bailout in 2018 to shore up its balance sheet — will be split into domestic, regional and international business units, each with their own management.

Finance minister Tito Mboweni is expected to announce some form of financial assistance for the airline when he tables his 2019-2020 budget in parliament on Wednesday.

This follows the government’s decision to remodel and split struggling power utility Eskom into three state-owned entities dealing with generation, transmission and distribution.

 

 

Reuters

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