Cape Town – South African Airways has announced that it will be closing its loss making Beijing Route, at an AGM media briefing held in Johannesburg.
SAA Acting CEO Nico Bezuidenhout confirmed that the loss on the SAA route was an estimated R1bn over the past three years. SAA debuted its non-stop route to Beijing, China, in January 2012.
The route is set to stop operating in the first week of April.
In line with this decision SAA has been actively strengthening its bilateral cooperation with Air China. Air China is expected to start operating a direct route to Johannesburg in May 2015
SAA also said it would be using its strategic Abu Dhabi route as part of the turn-around strategy.
The move comes as part of the airline's 90 Day Action Plan which was launched in December and no further details are available as to when the route will stop operation as yet.
Also see: SAA assembles new ‘war cabinet’ to solve crisis
At the AGM media briefing Finance Minister Nhlanhla Nene confirmed that Government guarantees to SAA top R14.4bn with R8.3bn already utilised.
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