SAA to undergo radical restructuring

Cash-strapped SAA is to go through a radical restructuring.

File: Cash-strapped SAA is to go through a radical restructuring.

AFP/Michele Spatari

JOHANNESBURG - Public Enterprises Minister Pravin Gordhan has just announced that South African Airways will undergo radical restructuring.

Gordhan says there's no other way to save the national carrier.

The announcement comes two weeks after SAA signed a wage deal with trade unions, ending an eight-day strike.

READ: Cash-strapped SAA pays workers

Management says the strike by the South African Cabin Crew Association and National Union of Metalworkers of South Africa (Numsa) brought the state airline to the brink of collapse.

It had to pay staff their November salaries in two instalments.

Over the past few days, SAA engaged in talks with lenders to find a solution.

The airline will remain open for business.

Source
eNCA