South Africa’s struggling state-owned airline is to break into three business units as part of a restructuring plan, its Chief Executive Vuyani Jarana said on Monday.
Jarani said the firm - which has not made a profit since 2011 and was given a 5 billion rand bailout last year to shore up its balance sheet - will be split into domestic, regional and international business units, each with their own management.
The Airways has also secured a much-needed cash injection.
The R3.5-billion loan will finance its working capital requirements until the end of the current financial year.
Negotiations are underway to get repayment terms of previous loans extended.
“We appreciate the lenders are proceeding with caution, but they are satisfied with the progress... We will keep operations going on until the end of the current financial year,” said SAA spokesperson, Tlali Tlali.
Meanwhile, SAA will remain a single entity but will be broken into three separate business units as part of a restructuring plan.
“SAA will remain as one entity with three business unit’s superimposed on current route network. International, regional Africa and domestic market in South Africa,” Tlali Tlali added.
Source: Reuters with additional files from www.enca.com