Most airlines are subsidised! The difference is that the SA government are stupid enough to subsidise with cash!
* US carriers with federal guaranteed loans - means they can borrow money at the same rate as the federal government which means its free since the fed print the money!
* The Middle Eastern guys get almost free fuel and no taxes and no airport taxes at the intermediate points.
* UK carriers get favourable access to local airports.
* Australian carriers get protection from new entrants and fifth freedoms.
* EU carriers get cheap subsidised aircraft from Airbus and cheap asset finance for Boeing products through international trade finance organisations.
* EU carriers also get tax breaks for training like no other part of the world.
* Asian carriers get cheap labour through open border free trade agreements.
At the end of the day the only reason why SAA struggles against these guys is that we don't have these sorts of arrangement - the difference is that our government compensate with cash.
By the way, for those of you who think that other local carriers don't get subsidised start laughing! The whole Comair operation is subsidised by BA mainline who feeds high yield traffic at higher than market prices - just look at interline prices on BA relative for a OneWorld carrier as opposed to a non-OneWorld. The only guys who are not subsidised are 1Time!