Fluffy. You might not like what I have to say and that’s fine- reality is that SAA is up the creek and the paddle is floating away. Why we are where we are is a function of a number of things- and no Im not one who subscribes to getting the pilots-or anyone else for that matter …well maybe Khaya - to take a pay cut because that’s not where the problem really lies. The issues are fundamental and if not addressed this business will continue to burn cash at the rate its been doing. Capital reserves have been wiped out, decisions are taken by the wrong people on the basis of flawed strategy- this needs to change.
Right now the priority is to stem the flow of cash out the business- this encompasses recruitment, contracts (including leases) etc. Your answer to everything is to grow- fly more places, get more aircraft. Problem is what’s the point if your business is not in a position to leverage that growth? Size has no relation to profitability. If the submission to the board on the fleet is approved then there will be a reduction the number of aircraft operated- yes this means there are one or two routes that now hang in the balance, however the effects will be minimized by increasing utilization on the remaining aircraft to a point. No crew will be out of work as the increased utilization on the remaining fleet will absorb them.
Once we move the business out of the ICU unit and prove to DPE that the balance sheet is looking better AND the performance is sustainable- then they will provide the 4bil recap. If the DPE’s conditions are not met then no money and no SAA. Simple.
So many questions on Mango, which clearly you believe to be the root of all evil. Despite your feelings, SAA still owns Mango- the relationship the two companies have is in no way anti competitive- if it were I can assure you messers Novick, Orsmond, Bricknell would be bleating about it already. Why does Mango use Equity- well why does 1Time use them? why does Mango use SAT- well why does Comair use them for their 737’s? etc etc
As things stand right now Mango’s future seems pretty well set- can the same be said for SAA right now? It will be if we get this right- there is no choice.