South African Airways (SAA) is expected to unveil details this week of its new comprehensive and fundamental restructuring programme, Business Day reported on Monday.
The new turnaround plan — which could include cutting up to 1 000 jobs — will be the second to be unveiled by SAA chief executive Khaya Ngqula since he took over the reins more than two years ago.
Ngqula admitted recently that the Bambani turnaround programme he launched in 2004 had failed to achieve its objectives. The programme was aimed at improving efficiencies and reducing costs by R1,3-billion in five years.
Ngqula said the airline’s board had already approved the restructuring plan, but it still needed final approval from Public Enterprises Minister Alec Erwin.
With the help of United States-based airline management and consultancy firm Seabury Airline Planning Group, SAA said, its new turnaround plan would include a review of contracts with suppliers, labour concessions, re-skilling staff, right-sizing the company and cost-saving.
Cost-saving involved revoking all discretionary spending, limiting company cellphones to key operational purposes only and cutting 1 000 jobs across all levels and business units. SAA has about 11 000 employees.
Ngqula said the restructuring process was expected to take 12 to 18 months. — Sapa