Company news in brief
13 June 2018 | Economics
Six months into the job of running loss-making South African Airways, Vuyani Jarana is mapping out a punishing austerity plan.
Jarana, who faces the daunting task of turning the flag carrier around, said layoffs and other cuts were unavoidable as he contends with a draining cost-to-income ratio of 108%.
“SAA cannot carry the same workforce, whether it is pilots, cabin crew or administration,” he told Reuters. “We have to make some tough decisions to save the airline. There cannot be sacred cows when it comes to SAA.”
Airtel Kenya abandons plan to merge with Telkom
The Kenyan unit of Bharti Airtel has abandoned plans to merge with Telkom Kenya to take on the market leading operator Safaricom, industry and government sources said on Monday.
Sources said in April that Airtel and Telkom Kenya were planning to merge to create a stronger challenger to Safaricom, which has 72% of subscribers, or around 30 million subscriptions.
“Airtel developed cold feet,” said an industry source who declined to be named.
Huawei patent case shows Chinese courts' rising clout
A smartphone patent fight between Huawei Technologies Co Ltd and Samsung Electronics Co could reach a global resolution through a ruling by a Chinese court, a development that reflects the growing attractiveness of China as a quick and effective forum for intellectual property disputes.
The size of the US market and the strength of the country’s independent judiciary have historically given its courts the final say in most big cross-border patent disputes. Legal experts say US courts’ pre-eminence in intellectual property matters has helped foster a culture of innovation that China wants to emulate.
US reveals ZTE settlement details
ZTE Corp’s settlement with the US Commerce Department that would allow China’s No. 2 telecommunications equipment maker to resume business with US suppliers was made public on Monday, days after the company agreed to pay a US$1 billion fine, overhaul its leadership and meet other conditions.
But the ban on buying US parts, imposed by the department in April, will not be lifted until the company pays the fine and places US$400 million more in escrow in a US.-approved bank, the agency said.
ZTE did not immediately respond to requests for comment on Monday.
Total signs deal to extend TFT gas field license in Algeria
French oil and gas major Total said on Monday that it had signed a new concession agreement with Algeria’s Sonatrach, Repsol and Alnaft for a 25-year extension of their Tin Fouyé Tabankort (TFT) gas and condensate field license.
It said the agreement would give Total a 26.4% stake in the project. Sonatrach will hold 51% and Repsol 22.6%.
The partners will carry out the drilling and development investments required to develop additional reserves estimated at more than 250 million barrels of oil equivalent, Total said in a statement.