The beginning of the end has long since come and gone. What we are looking at is either the beginning of drastic change of the company's structure in order for it to survive, or the actual bankruptcy and liquidation of it.
I really hope that through some miracle it manages to pull through, but even if it does survive it will look much different when the process is finished: many will lose their jobs.
The cold hard facts speak differently: an airline cannot stay solvent on happy thoughts and cameraderie alone. It needs cash, and quickly.
What we are looking at is either the beginning of drastic change of the company's structure in order for it to survive, or the actual bankruptcy and liquidation of it.
Although pessimistic, I highly doubt it's the former. Lets face it, 50% of all crews' salaries for the month of September will hardly make a dent in the debt incurred by the airline (almost R500m). By process of elimination I think this is probably the beginning of liquidation.
I fear that you are quite correct. Pulling through something like this almost exclusively happens only in Hollywood movies: you can't expect a business rescue practitioner to miraculously multiply 3 fish and 5 loaves into a feast to feed the masses...
As much as SAA can take the blame for this due to their uncompetitive practices, one mustn't lose sight of the fact that if the previous management at 1time hadn't effectively raped, ravaged, and pillaged the company to a carcass, it wouldn't be in the dwang in the first place.
No, Rodney James, Michael Snyman, Michael Kaminski and Glen Orsmond deserve most of the blame here.
I heard that they are going to retrench quite a few pilot. The strange part is, they are trying to withold salaries from pilots resigning giving only a months notice in stead of two months. This after only paying them only 50% of their salaries. Of course they can get away with murder since most of their pilots are employed via Amico (labour broker). How do you plan to keep loyal pilots if you're into these games? I suppose its still the same henchmen running their flight ops. Shame on you 1time. I thought you progressed beyond these practises of exploiting your staff.
I hope that's not the case. If so you'll probably see the guys give 24hour notice. If the 50% salary is true it will be considered breach of contract unless the employees agreed and signed for it in advance. Thats all contracts off the table... Mass exit imminent, which will at least avoid retrenchments for now.
Is it only the pilot's salaries or all employees? I believe the Jetworx engineers have been on 50% salary for 3 months already. Its hearsay so maybe somebody can confirm it? If the office workers are also only getting 50% salary, do they still have to work a full day? Sad state of affairs.
This is going to get messy. Fact of the matter is, amico or not, in history airlines in this position tend to do what they like regardless, speak to ex air Atlanta guys.....(before I get shot down, I understand it's a different country, which there for has different labour laws) in a senario like this, they aim to reduce costs as much as possible. If I was one of the high earning senior pilots, I would be weary, only advice, get alpa on standby, although not going to help much, it's some help! From what I understand, it's the whole company, right from the bottom to the top.