SAA said on Tuesday that it has "consolidated" various domestic flights and canceled several international flights to conserve cash in an environment of low demand.

Domestic passengers will be accommodated by Mango "on alternative services operated by both airlines to minimize disruption" the airline said. In all, 28 domestic flights between Johannesburg and Durban and Johannesburg and Cape Town have been canceled.

On the international network, services between Johannesburg and Munich have been canceled. Passengers booked on these flights will be accommodated on SAA services between Johannesburg and Frankfurt as well as London Heathrow. Some passengers traveling to Munich, and others traveling via Munich to other destinations, will be re-accommodated for some of their journey on partner airlines in the Star Alliance, it said.

It is possible that further schedule changes will be announced later in the week.

"These decisions are in line with SAA's usual policy of reviewing flights and consolidating services with low demand. Furthermore, during the current process of business rescue, these cancellations represent a responsible strategy to conserve cash and optimize the airline’s position ahead of any further capital investment." said the statement.

Implicit in the statement is the expectation that SAA is still to receive further capital investment from the government. Business rescue practitioner Les Matuson had expected to receive word from the department of public enterprises last weekend over whether the R2bn promised by the government to fund the airline during business rescue would be forthcoming.

That decision has been delayed with the department saying on Sunday that it is still engaging with the National Treasury to secure the funds.

In December, the government promised that it would provide R2bn from the Treasury and also guarantee another R2bn, which was to be provided by a consortium of banks. While the bank funding did materialize, it has now been depleted and the government has not been able to keep its side of the bargain.

As the Treasury has made no statements on the matter, the reason is unknown.

Source(s): Business Daily