(Bloomberg) -- South African Airways will create three distinct business units focusing on domestic flights, pan-African travel and other international routes as the debt-laden airline battles to repair its balance sheet.
The restructuring will not lead to a full breakup of the state-owned carrier, spokesman Tlali Tlali said by phone on Monday. Reuters earlier reported the plan to separate into three divisions.
SAA Chief Executive Officer Vuyani Jarana is under pressure to show he's making progress turning around the carrier, which hasn't made a profit since 2011 and has 9.2 billion rand ($653 million) of debt due at the end of March. Last year, the airline received a 5 billion rand government bailout to cover looming payments, but it's unclear if the National Treasury will stomach another outlay.
To contact the reporter on this story: Loni Prinsloo in Johannesburg at lprinsloo3@bloomberg.net
To contact the editors responsible for this story: Anthony Palazzo at apalazzo@bloomberg.net, John Bowker
©2019 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
