Quoted from the other site:
The true cost of flying SAA
Jocelyn Newmarch
You are paying twice to fly SAA: once when you buy the ticket and once when you pay your taxes.The loss-making national carrier flew 7,2-million passengers last year, bringing in an average revenue of R2 234 per passenger. This year it is projecting a R650-milllion loss, or R92,85 per passenger, based on last year`s passenger numbers.
The carrier operates at a loss even though it had to be recapitalised by more than R6-bHlion in recent years, following disastrous adventures on the foreign-exchange markets.
Even more controversially, SAA is reportedly looking for a R4-billion bailout from government to put ambitious restracturing plans in place.
SAA recorded a net profit of R65-million last year, thanks to a change in accounting regulations for expired tickets.
SAA chief Khaya Ngqula`s restructuring plan aims to `simplify, right-size, re-skill and incentivise the business`, he told media at a briefing on Tuesday. Jobs, along with other costs, will be slashed. A new business plan for SAA is currently being drafted.
According to media reports, Ngqula also wants to see the company`s individual components run as separate and accountable divisions. The plan focuses on cost savings, simplifying the fleet and eliminating unprofitable routes, reviewing contracts with suppliers and what is euphemistically termed `labour concessions`.
Current belt-tightening includes a clampdown on unnecessary staff travel, the removal of non-essential company cellphones and revoking discretionary spending.
International consultants Sea-bury, who specialise in airline turnarounds, have been appointed to guide the airline. But one logical place to start would be right at the top. Ngqula holds 38 directorships and the average SAA board member sits on 20 boards, according to reports earlier this month.