South African Airways (SAA) will retrench 1 000 employees due to high operating costs, the airline announced on Thursday.
The retrenchments, from all sectors of the national carrier, had already begun, said CEO Khaya Ngqula at a media briefing in Sandton.
Although revenue was up SAA had to cut down on costs. The airline Mango, a subsidiary of SAA, had nothing to do with the retrenchments, he said.
Spokesperson for SAA Jacqui O’Sullivan said the airline had a record number of passengers in the past three months.
”Revenue has never been better but the operating costs are eating up whatever that it [revenue] has brought in.”
She said staff were informed of the decision on Wednesday.
”For two years the airline looked at ways to cut costs, so this has not been an easy decision.”
The government and SAA’s board both approved the decision.
Retrenchments are expected to end in December 2007.
Meanwhile, the airline announced it would be expanding its route network to Europe, North America, South America and Africa by adding new destinations to each of these continents.
From 2007 the airline will fly to Buenos Aires, Chicago and Munich. — Sapa