South African Airways (SAA) has also renegotiated fleet lease re-extensions of 3 of its A340 aircraft, already representing a positive impact of R 112 million annually. Further five aircraft lease extensions and renegotiations are expected to yield additional savings in excess of R 150 million later in the year.
In a report on its 60 days into the 90 Day Action Plan commenced last year, SAA also disclosed that it has completed approximately 40% of identified contract renegotiations, which forms part of a strengthening of Governance controls within the procurement area and re-focus on cost compression, which has resulted in annualised savings of R 91 million, the airline said.
SAA expects to improve operating performance by approximately R 1.25 billion through the implementation of the 90 Day Action Plan, in the financial year ending March 2016.