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South African Airways to Reorganize Into Three Separate Units

SAA's first A340-600 comes in to land at Johannesburg International on its maiden flight from France. Picture: Shayne Robinson/SAPA

South African Airways will create three distinct business units focusing on domestic flights, pan-African travel and other international routes as the debt-laden airline battles to repair its balance sheet.

The restructuring will not lead to a full breakup of the state-owned carrier, spokesman Tlali Tlali said by phone on Monday. Reuters earlier reported the plan to separate into three divisions.

SAA Chief Executive Officer Vuyani Jarana is under pressure to show he’s making progress turning around the carrier, which hasn’t made a profit since 2011 and has 9.2 billion rand ($653 million) of debt due at the end of March. Last year, the airline received a 5 billion rand government bailout to cover looming payments, but it’s unclear if the National Treasury will stomach another outlay. DM

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