JNB-LHR SAA Reduces London Frequency / Introduces A330-300 to Route
Mar 13, 2018, 10:35 am
#16
FlyerTalk Evangelist
Join Date: Oct 2000
Posts: 14,352
SAA to continue to cut, reduce routes
"Vuyani Jarana, CEO of South African Airways, has announced that the airline will continue to cut or reduce loss-making routes and transfer unneeded aircraft to profitable low-cost carrier, Mango Airlines, as it embarks on a three-year recovery plan.Jarana, who became SAAs first permanent CEO in three years when he started in November, says: We now have a clear strategy and clear path to profitability defined by the board. We are looking at a three-year window to get to a break-even point. We continue to revise the strategy as we see new opportunities."
Source
Johan
Source
Johan
Mar 14, 2018, 3:23 am
#17
Ambassador, Emirates
Join Date: Mar 2006
Location: LGW / AMS / CPT
Programs: SA KL BA EK
Posts: 4,284
"Vuyani Jarana, CEO of South African Airways, has announced that the airline will continue to cut or reduce loss-making routes and transfer unneeded aircraft to profitable low-cost carrier, Mango Airlines, as it embarks on a three-year recovery plan.Jarana, who became SAAs first permanent CEO in three years when he started in November, says: We now have a clear strategy and clear path to profitability defined by the board. We are looking at a three-year window to get to a break-even point. We continue to revise the strategy as we see new opportunities."
Source
Johan
Source
Johan
Why not try to see WHY a route is unprofitable and try to fix that.
How many routes would have to be abandoned to get to break even.
And with an ever decreasing network, flying this airline becomes less and less of an option...
Mar 14, 2018, 7:44 am
#18
Join Date: Dec 2010
Location: N/A
Programs: UA 1K, BA Gold, LH/SN/LX Senator
Posts: 449
This is more about cash and balance sheet preservation than returning to profit.
Mar 16, 2018, 12:04 am
#19
Join Date: Mar 2004
Location: CPT
Programs: BA BD SA
Posts: 4,467
Well, BA and VS must be laughing all the way to the bank.
More chance to increase the fares on that route. I find it astonishing that SAA can't make a decent profit on that route. BA run a 380 plus a 747. And I understand from people flying the route that they are often overbooked.
More chance to increase the fares on that route. I find it astonishing that SAA can't make a decent profit on that route. BA run a 380 plus a 747. And I understand from people flying the route that they are often overbooked.
Mar 16, 2018, 6:43 am
#20
FlyerTalk Evangelist
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And this is perfectly sensible. However, for this to be sufficient, you have also to take steps to address the reason why so much is unprofitable, whether it's cost structure, or service deficiency, and then rectify these issues. Otherwise you get sucked into a vortex of further losses and further cuts, from which you won't escape.
Mar 16, 2018, 9:09 am
#21
Join Date: Dec 2010
Location: N/A
Programs: UA 1K, BA Gold, LH/SN/LX Senator
Posts: 449
And this is perfectly sensible. However, for this to be sufficient, you have also to take steps to address the reason why so much is unprofitable, whether it's cost structure, or service deficiency, and then rectify these issues. Otherwise you get sucked into a vortex of further losses and further cuts, from which you won't escape.
May 23, 2018, 1:14 pm
#22
Join Date: Mar 2004
Location: CPT
Programs: BA BD SA
Posts: 4,467
Well, BA and VS must be laughing all the way to the bank.
More chance to increase the fares on that route. I find it astonishing that SAA can't make a decent profit on that route. BA run a 380 plus a 747. And I understand from people flying the route that they are often overbooked.
More chance to increase the fares on that route. I find it astonishing that SAA can't make a decent profit on that route. BA run a 380 plus a 747. And I understand from people flying the route that they are often overbooked.
All that demand and SAA couldnt make the route profitable...
Jun 27, 2018, 9:12 am
#24
Join Date: Jul 2013
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