The Board of South Africa’s state-owned airline, South African Airways (SAA) have resolved to restructure the airline into three business units with the aim of improving profitability. SAA last made a profit in 2011 and has since then been loss making and a drain on state resources requiring perpetual capitalization reducing resource allocation to other key sectors of Africa’s most industrialized economy.
Chief Executive Vuyani Jarana said during a briefing that part of a revamp plan for the airline could also involve the partial sale of its catering unit.
SAA will organise itself into domestic, regional and international business units with independent management, in a bid to make the airline more agile and increase accountability.
“We are evolving into an operating model of three business units,” Jarana told the briefing.
“We want to build a new SAA, fit for the future, place the right people in the right job,” he added.