[QUOTE]SAX is also on the verge of bankrupcy. VERY good story in the Business Day a few weeks back. Will try find it. Basically says SAX also uses some very 'interesting' accounting practice. Makes profit, but always needs R200mill from me, the tax payer.
SAX own auditors not sure it has the funds to meet its up coming commitments. Zero mantainance reserves. Also owes Transnet a fortune, like a BILLION rands.
But back to the topic, if SAA was broken up, the routes would become be up for grabs, wouldn't be too long before everybody else was operating international. The flying wouldn't stop, just wouldn't cost me money.
Short term pain for long term gain. Lets get on with it, sooner the better.QUOTE]
There was a time in the late 90's when SAX went through a rocky patch but that’s well behind them now and I’ve no doubt they will go from strength to strength.
If SAA was not around, the only benefactors would be the international airlines flying into South Africa, the local airlines, trying to compete on long-haul routes, would be killed stone dead in no time at all- this would have a knock on effect in the local market. The long haul market is hugely capital intensive and very competitive, an area where networks play a very important role. Sorry but facts are facts. SAA will come out of this- the government will not let it slip…and then there is the matter of 2010 coming….