South African Airways (SAA) could stop serving in-flight meals and cut back on cabin crew under a R2,7-billion cost-cutting proposal up for approval by its board next month, according to the Sunday Times.
The newspaper said the government this week gave a R1,3-billion cash injection to the airline, which is expected to post a loss of more than R652-million for 2006.
The planning group that compiled the proposal reportedly estimated that the national carrier could save R171-million by not serving food on domestic economy flights and rationalising the meal options in business class.
It predicted savings of, among others, R287-million from reviewing sponsorships and marketing; R60-million by using fewer attendants on flights; and R80m from scrapping timetables, in-house magazines, entertainment guides and wine lists.
It suggested that unprofitable routes be suspended; that plans to buy aircraft, office furniture and flower arrangements be shelved; and that certain international offices be closed.
SAA has warned of up to 1 000 retrenchments. The South African Transport and Allied Workers’ Union has threatened industrial action unless it is included in the restructuring process. — Sapa