So bearing this in mind, you now have Safair receiving no more financial backing from Imperial, yet still having to show a profit to the Imperial investors. Last I heard it was something ridiculous like 30% (you show me any aviation company who can consistently show that kind of profit every year). Management is thus doing the only thing they can to achieve this, selling off assets. One can only sell off so many assets before you start to damage your core business - in this case, the leasing out of aircraft and providing specialized operation. The next step would be to try and bring in more funds with existing contracts. To achieve this you start to review your contracts and increase prices, thereby risking losing your clients to competitors. The next step is to cut overheads. The best way to do this is retrench personnel and presto, you save more money. But there is an old saying in aviation. To make a small fortune you need to start with a big one. The problem is, the small fortune is now getting so small that you cannot make a profit anymore.
The bottom line is, unless Safair gets some serious investors to back them and soon, this company is not going to be around for much longer.
I thought this was about SAFAIR, not SAA!!
