South Africa's Sun Air is reported to have been improving
financially when it was shut down by SA Airways. Business Day
reported on January 20 that a liquidation inquiry into the airline's
demise found that the company was in the black with R28m cash
on hand when it was shut down in mid-1999. Comair executives
have testified that underlying Sun Air's demise were attempts to
remove managing director Mr. Johan Borstlap and tensions
between Comair and Rethabile Group (which held 25% and
35.75% stakes in Sun Air, respectively). Comair chairman Mr.
David Novick has testified that a number of elements contributed
to Sun Air's problems, including high overhead costs and
unrealistic pricing structures. Sun Air, he noted, could not afford
to sell its tickets at such low prices. SAA's aggressive marketing
in 1998/1999, Novick said, contributed to overcapacity in the
market, but he also reported that Sun Air's management was
weak. Comair and Sun Air were reported to have discussed a
possible merger and a code-share arrangement. According to
Novick, such an agreement could have saved R100m annually
and saved Sun Air if Rethabile Group had not rejected the idea.
Another witness to the inquiry, Comair deputy chairman Martin
Moritz, also stated that poor relations existed between directors
from Comair and Rethabile Group. After November 1999,
SAA's marketing placed further capacity on the market, at the
same time that Sun Air started to lose money. Afterwards,
Novick said, Sun Air's situation worsened rapidly.
I have been reliably informed that Rethabile directors were asked "where's the money?" (for their shares) and they told Comair "We do not have to pay ... you must pay for us, because of all the suffering we had under Apartheid, when you flourished!"
I see that South Africa's new Equal Opportunities Bill outlaws just about every form of discrimination ... except affirmative action, which is now institutionalised.
To me, this looks suspiciously like apartheid is well and truly back again ... except now you have to be black to benefit!
Welcome to Africa, guys!!
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Happiness is VR at Lagos!