South African Airways (SAA) said on Tuesday that it had signed a deal with Emirates [EMIRA.UL] to expand an existing codeshare agreement, in a rare bright spot for the cash-strapped airline.

The state-owned carrier, which has not made a profit since 2011 and survives on government handouts, said the agreement would see the two airlines leverage each other’s route networks, cargo services and flight schedules to boost passenger flows.

South African President Cyril Ramaphosa has been at pains to stabilize ailing firms like SAA, but the extent of their financial difficulties has meant slow progress.

SAA, which hopes to turn a profit by 2021 by cutting jobs and routes, expects to make another large loss this financial year, despite a recent government cash injection of 5 billion rand ($350 million).

“The expansion of our commercial relationship will further strengthen key focus areas of the implementation of our turnaround plan,” SAA Chief Executive Vuyani Jarana said.

SOURCE REUTERS/YAHOO