Outa: SAA needs to reduce operational costs
The Organisation Undoing Tax Abuse (Outa) believes it doesn’t make sense for embattled national carrier South African Airways (SAA) to reduce flights but not its operational costs.
This comes after SAA cancelled a number of flights on Tuesday to save cash.
READ: Flight Centre warns: a number of SAA flights cancelled both domestically and abroad
The state-owned airline was promised R2billion from government for its business rescue processes or face the risk of shutting down operations.
Outa's Wayne Duvenhage says it's concerning that government cannot come up with the funds to assist the airline.
“The real problem is that the airline keeps reducing its routes and its flights, but it is not reducing its headcount. If you take out a number of flights then you have to remove the headcount and the other operating costs that come with it.”