Cash-strapped, state-owned airline, South African Airways, recently shared good news when it announced that it had signed a deal with Emirates to expand an existing codeshare agreement.
South African Airways has not made profit since 2011 and survives on government handouts. The state-owned carrier said the agreement would see the two airlines leverage each other’s route networks, cargo services and flight schedules to boost passenger flows.
South Africa’s president, Cyril Ramaphosa has been at pains to stabilize ailing firms like South African Airways, but the extent of their financial difficulties has meant slow progress.
By cutting jobs and routes, the airline hopes to make profit by 2021. The company also expects to make another large loss this financial year, despite a recent government cash injection of 5 billion rand ($350 million).
Vuyani Jarana, the Chief Executive of South African Airways said “the expansion of our commercial relationship will further strengthen key focus areas of the implementation of our turnaround plan”.