Found this on the other forum...........
SOUTH African Airways (SAA) is to announce its new business plan, modelled on that of Air Canada's, on May 1 this year, following an in-depth, independent look at its operations.
Speaking to delegates at the Asata Congress, which kicked off yesterday (March 22) at Misty Hills in Johannesburg, ceo, Khaya Ngqula, likened the airline's current operations to "using a Rolls Royce to ferry passengers between Johannesburg and Soweto".
"Our focus over the next year is to simplify our business," said Ngqula, citing the division of the airline into six new companies: SAA technical, cargo, ground handling and airport operations, SAA itself, low-cost carrier Mango, and SAA Voyager.
Ngqula said the next 12 to 18 months would be "tough", with recently adopted cost-cutting measures including the establishment of a "cash conservation office" responsible for approving all the airline's costs. He implied that part of the restructuring may entail staff cuts. Ngqula also confirmed R20bn revenue for the year ending in March 2007, but added that this did not mean the airline would show a profit. "We have to make the airline viable for everybody," said Ngqula.
Among further measures, he said, would be the re-evaluation of all routes and possible withdrawal of those that were not profitable. He confirmed that both the Munich and Buenos Aires routes would go ahead as planned. Khaya also told delegates the airline had no current plans to buy additional aircraft.