South African Airways will reduce the number of flights between Johannesburg and Cape Town, and stop flights to Port Elizabeth and East London, in its quest to become profitable.
This is according to a report in the Rapport newspaper, which added that regular flights to central Africa will also be cut and that it will reduce daily flights to London from 2 to 1.
SAA will further reduce its fleet of 50 aircraft by 10 as part of its “drastic turnaround strategy” to reduce costs.
SAA has been a drain on the South African economy, with numerous bailouts costing taxpayers billions.
As part of the enterprise’s turnaround strategy, former Vodacom executive Vuyani Jarana was appointed as its new CEO.
Last month, Finance Minister Malusi Gigaba revealed the need to sell state assets in a bid to inject nearly R16 billion into SAA so it can repay loans.
Following Treasury’s R2.207 billion bailout of SAA in June, Gigaba had to inform Parliament about where the money would come from.
Gigaba’s spokesperson Mayihlome Tshwete recently said the finance minister is in discussions to sell the government’s 39.75% stake in Telkom to fund SAA.
“We shouldn’t speak of it as a done deal. This is one of the things we are exploring,” said Tshwete.