South African Airways Mulls Cost Cuts, Asset Sales, City Press Says
(Bloomberg) -- South African Airways is considering cost cuts including selling some assets, following a refusal by banks to lend any more money to the state-owned company, according to City Press newspaper.
Management is thinking about selling the airline’s catering unit, Air Chefs, and outsourcing or selling SAA Cargo, the Johannesburg-based paper reported, citing an official it did not identify and an internal report.
The company is set to record a 6 billion rand ($419 million) loss at the end of the current financial year, City Press said, citing the internal report. A spokesman for SAA didn’t answer a call seeking comment outside of usual office hours.
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