Passengers to feel SAA cuts
07/04/2007 21:40 - (SA)
Johannesburg - South African Airways (SAA) could stop serving in flight meals and cut back on cabin crew under a R2.7bn cost-cutting proposal up for approval by its board next month, the Sunday Times has reported.
According to the newspaper, the government this week gave a R1.3bn cash injection to SAA, which was expected to post a loss of over R652m for 2006.
The planning group which compiled the proposal reportedly estimated that the national carrier could save R171m by not serving food on domestic economy flights and rationalising the meal options in business class.
It predicted savings of, among others, R287m from reviewing sponsorships and marketing; R60m by using fewer attendants on flights; and R80m from scrapping timetables, in-house magazines, entertainment guides and wine lists.
It suggested that unprofitable routes be suspended; that plans to buy aircraft, office furniture and flower arrangements be shelved; and that certain international offices be closed.
SAA has warned of up to 1 000 retrenchments.
The SA Transport and Allied Workers' Union has threatened industrial action unless it is included in the restructuring process.