South African Airways to Scale Back in 3-Year Break-Even Bid
- State carrier to transfer planes to low-cost unit, CEO says
- Company may not be able to operate as going concern: Auditor
Photographer: Waldo Swiegers/Bloomberg
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South African Airways is striving to return to profit in three years by reducing the size of the network and transferring planes to its low-cost carrier as Chief Executive Officer Vuyani Jarana embarks on a recovery plan.
A turnaround of the state-owned airline is among the more urgent priorities of newly appointed Finance Minister Nhlanhla Nene, who is seeking to avoid a repeat of the government bailout approved by his predecessor Malusi Gigaba last year. The carrier’s net loss widened more than threefold to 5.6 billion rand ($473 million) in fiscal 2017 and the company may not be able to operate as a going concern, South Africa’s Auditor General said last week.