Despite a healthy injection of bail-out funds this week, the troubled South African Airways (SAA) on Friday announced that it was cancelling at least 48 flights in February as a cost-cutting measure.
The state-owned Development Bank of Southern Africa (DBSA) provided the SAA with a US$233 million loan to get it back into the air after two weeks of being grounded.
The funding, however, has apparently been unable to inspire the national carrier to resume normal operations.
It instead announced on Friday that it was cancelling some flights and consolidating selected scheduled flights where there is low demand.
According to the embattled airline, the savings would be used to facilitate the development and publication of its business rescue plan by the end of February for presentation to the creditors.
The newly-appointed business rescue practitioners, who are currently nursing the airline’s business affairs, would continue to review all third party contracts with the entity, with the intention to cancel or renegotiate with the contractors, the SAA said.
The national carrier received a US$233-million government-guaranteed loan from the DBSA on Tuesday.
SAA has not made a profit for nearly a decade.
NM/jn/APA