Originally Posted by Avi8tor
BTW, operating profile means that u make money BEFORE u pay for the aircraft. SAX has some R800mil debt. It lost R180mil last yr alone!!
It is sad that the govenment seems intent on keeping loss making airlines in business, instead of building houses and fighting crime.
I DONT want to turn this into a SAX bashing thread. But I really would like to see the industry run on a PROFITABLE basis. Its the only way we will see long term growth.
You are right about the loss. SAX has been operating as a feeder to SAA since its inception. Lately some of the more profitable routes have gone their way (Coastal and JNB-GRJ). Part of the Q400 strategy is to turn this situation around and make a pure profit.
The point I was trying to make was that SAX has never received money to buy or lease a/c. They have always had to finance it commercially. All airlines have debt. Most that fold do so because they have been unable to service that debt. SAX has managed to keep going for 12 years now, and I think it has a bright future.