WATCH: SAA’s plan to save R2bn
Picture: Reuters/Mike Hutchings
South African Airways (SAA) is renegotiating favourable terms on contracts with its suppliers while sourcing better terms on new procurement spend, including for fuel and ground handling, which would cumulatively save it nearly R2billion.
This comes as the cash-strapped national carrier locked horns with labour unions at the Commission for Conciliation, Mediation and Arbitration on Saturday following a crippling strike over wages and planned job cuts.
The unions have accused SAA of purging more than 900 workers to save R700 million instead of the lion’s share of its R25bn annual procurement spend wasted on grossly inflated, irregularly negotiated contracts.
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But SAA spokesperson Tlali Tlali said the airline had been reviewing some contracts for a while, adding that this formed part of what it was doing on an ongoing basis.
Tlali said some of the existing contracts did not enable SAA to extract maximum value and benefit.
“We are, therefore, renegotiating to have much more favourable terms for SAA to get more value for money. A contract with one of the global distribution systems has already been successfully re-negotiated and the savings are forthcoming,” Tlali said.
Source: iol.co.za
