TNW Pick: Massive cost cutting from SAA’s restructure

SAA is restructuring its organisational design to drastically cut costs and put a structure in place that it says will foster effective decision-making and accountability.

The new SAA group operating model will divide the airline into three business units. The Domestic unit will include Gauteng, Western Cape, Eastern Cape and KwaZulu Natal; the Regional unit will be split into SADC, East Africa and West and Central Africa; while the International unit will consist of Regional Americas, Regional Europe and Regional Middle East and Asia Pacific. Each area will be accountable for its own load factors, passenger numbers, RASK, CASK, Margins, EBIT, NPS, OTP, sales and break even KPIs.

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