/ 5 September 2007

SAA talking to unions on restructuring

South African Airways (SAA) is finalising the standardisation of working conditions with trade unions in its ”deep and fundamental” restructuring process, chief executive Khaya Ngqula said on Wednesday.

He said the revision of work packages that are a legacy of the national carrier’s past is essential in its efforts to become a profitable business.

”SAA is aiming to save R638-million through this process,” he told a press conference. ”However, if this saving cannot be achieved, or only a portion can be achieved, then retrenchments will have to take place.”

He also said that in line with the management head-count reduction of 30%, about 223 managers are expected to leave SAA in the coming months.

Ngqula said the process of grounding SAA’s costly Boeing 747-400 fleet by November is on track. They will be replaced by Airbus 300 aircraft that have been sub-leased to India’s Jet Airways.

Having closed its Zurich route, SAA will also cease flying to Paris at the end of next month, in line with its restructuring timetable.

”Munich was introduced into the network on July 1 and advance bookings have already exceeded expectations with capacity standing over 75%,” said Ngqula.

Within Africa, flights to Libreville, Gabon, will be introduced on September 19. Further expansion within the continent involves flights to Nairobi and Kinshasa.

SAA has also rationalised its ground operations with ”one-stop-shops” at airports at which passengers can conduct all their ticketing transactions. — Sapa