SAA execs agree on pay cut

Cape Town – The executive management of South African Airways (SAA) agreed to a 5% pay cut as acknowledgment of the financial difficulty the airline is currently experiencing, acting CEO Musa Zwane said on Friday.

SAA’s board and management are making presentations on the airline’s financial and commercial performance in the first quarter of 2017 to Parliament’s standing committee on finance.

Zwane said SAA managed to avoid incurring costs of about R35m per month in the past quarter while “revenue enhancement” initiatives will yield additional revenue of about R13.6bn over a five-year period.

The initiatives include network and schedule changes and pricing segmentation.

In addition, “cost optimisation” is expected to yield R10.1bn over the five-year period, and measures to bring this about include route rationalisation by cancelling some routes, reviewing overtime policy and rostering practices and shifting sales to online channels.