JOHANNESBURG- South African Airways‚ CEO Vuyani Jarana is reportedly mapping out a punishing austerity plan, Jarana is six months into the job and is managing the airline during mass losses.
The CEO has faced a tough task to turn around the national aircraft, he said the layoffs and other cuts were unavoidable and said the the cost-to-income ratio of 108%.
He said, “SAA cannot carry the same workforce‚ whether it is pilots‚ cabin crew or administration‚”
“We have to make some tough decisions to save the airline. There cannot be sacred cows when it comes to SAA.”
However he did not reveal how many people will be losing their jobs but Sunday Times reported that two sources familiar with the plan said the SAA plans to cut between 1000- 1500 people, the position would vary from layoffs and voluntary redundancies to bring its employee-per-aircraft ratio in line with regional competitors.
According to one of the sources included 300 flight attendants, 700 carrier pilots are encouraged to look for work somewhere else according to the second source and have drafted their own severance pay offer to SAA.
SAA announced on Monday that they will be laying off catering subsidiary Air Chefs, about 118 employees will be retrenched.
Photo Credit- SAA