PPRuNe Forums - View Single Post - South African Airlink - What are their future plans?
Old 21st Dec 2001, 01:10
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nugpot
 
Join Date: Jan 2000
Location: South Africa
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A SAX/SA Airlink/SA Airlink Regional merger can be and hopefully will be beneficial to all the airlines concerned. With the combined route structure and a/c capability, money could be saved and hopefully used to pay the pilots <img src="smile.gif" border="0"> (who will form the second largest pilot body in the country).

If a merger will happen and if it does, what form it will take is unknown and speculation unfortunately won't change anything. I know that SAXPA and APA are looking into the situation and will have the necessary structures in place if a merger does happen.

The R700 million question is what role SAA will play in any combined company?

As for Rodger Foster, I have had my run-ins with him and do not trust him, but he IS a good businessman and his input will be valuble for any merged company. I cannot see him as CEO though. SAX is an empowerment company and Transnet will own 55% of a merged company (100% of SAX and 10% of Link) and will have a lot of say. Rodger and Barry each own 19.35% of Link and nothing of SAX. Their voices will be small.

The merger makes good sense economically and frankly I do not think that SA Airlink can survive on their own. Airlink Regional has 4 jets with at least 11 more coming and they currently only have work for 2 (and those on SAX routes( OK except JHB-UPN-CPT and DBN-GRJ-CPT)). Open skies Africa is a dream that Rodger gambled on and he may have cost himself control of his airlines.

Be positive guys and girls. We have no influence over the economic/political decisions that will be made, but our attitudes and work ethic can make or break a merged company. In any case, we'll know by March 2002.

On the a/c front. I think the CRJ is a more mature and solid product than the ERJ, but it is vastly more expensive so I can see myself doing a conversion soon.
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