South African Airways Suspends Some Flights to Conserve Cash

By Jesse Sokolow on 21 January 2020
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A South African aircraft in London

South African Airways, the country’s flag carrier, suspended multiple flights in an effort to conserve cash after South African government delayed a critical bailout.

The airline cancelled multiple flights this week including those from Johannesburg to Munich and Cape Town in order conserve cash.

“South African Airways is in the process of consolidating selected domestic flights between the airline’s main hub, Oliver Tambo International Airport Johannesburg and Cape Town, as well as between Johannesburg and Durban’s King Shaka airports,” the airline said in a statement on Tuesday.

Johannesburg to Cape Town is the busiest route in Africa.

Earlier this week, the airline said all flights were operating normally as the government looks for ways to provide 2 billion rand ($138 million) in funding.  The airline has been operating under business rescue, a form of bankruptcy protection, since December.  However, the airline said the cuts were merely business as usual.

“These decisions are in line with SAA’s usual policy of reviewing flights and consolidating services with low demand,” the carrier said. “Furthermore, during the current process of Business Rescue, these cancellations represent a responsible strategy to conserve cash and optimize the airline’s position ahead of any further capital investment.”

(Photo: Accura Media Group)

 

Accura News

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