Originally Posted by George Tower
has SAX been making the profits to pay for these or is it just one of the perks of being state-owned that you can buy nice new aeries under cut the competition but have no track record of profitability to raise finance on commercial terms.
Hello GT
Common misconception. SAX has never been re-capitalised by Transnet or Government. Finance has had to be raised on commercial terms. SAX has pleaded with Transnet for a re-cap, but has been turned down. The airline has made an operational profit for almost its entire existence, but finance costs on the RJ's have been a bit of an financial burden.
Let's hope that the plan for the future solves that particular problem.