Ricochet News

SAA set to cancel plane contract

SAA set to cancel plane contract

Troubled national carrier South African Airways (SAA) is reportedly in the final stages of cancelling a contract with Airbus for the supply of ten A320 planes.

Speaking at a Parliamentary briefing earlier today, SAA Chief Financial Officer Wolf Meyer said the cancelled planes would be replaced by five brand new A330’s from early 2016, as the carrier continues its route back to profitably.

“We need to get the final approval from the board who can sign the documents and then we're done,” The Times quoted him as saying.

He also stated that the carrier, which has saved some R2.2-billion since 2013, plans on reducing costs by a further 30% over the next years.