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SAA axes unprofitable JHB/Abu Dhabi route

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Cape Town - The Minister of Finance has granted approval for South African Airways (SAA) to cease operating the route between Johannesburg and Abu Dhabi.

SAA’s interventions to improve the financial performance on this route, which was launched in March 2015,  had unfortunately not yielded the desired results, warranting that decisive action be taken to mitigate the negative impact on the airline, the Treasury said in a statement on Friday evening.

The goal was to use this new route as a gateway to the Far East for SAA passengers into China and India, and would operate at a substantial profit, as the current routes into those destinations were causing losses to SAA in excess of R400m per annum.

In January this year SAA announced that while its domestic operations remained profitable and grew during the 2013/2014 financial year, and regional African routes performed positively, the group's losses on its long-haul operations grew to R1.6bn.  

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