SAA's CEO lists a number of airlines that are running at a loss this year or have significantly reduced profits. There is no mention of what bail-out any of them are getting?? (A hint of the way to go could be the job losses at Lufthansa?)
Also listed are the airlines that have pulled out of operating into SA. Shouldn't this be seen as a business opportunity to move into the space left by them... or is it more the case that there just isn't the business on the SA routes and
that is why those airlines have pulled out?
But the best has to be (quote) "
SAA needs recapitalisation to replace its short-haul fleet of 737-800s by 2017. Two A320 aircaft were delivered earlier this year, the first 20 new and more fuel-efficient A320s expected in the next five years."! Probably one of the most cost-conscious airlines operating in one of the most expensive airline environments is Ryanair. Their
entire fleet is B737-800s!!! I have heard nothing about them "...need[ing] recapitalisation to replace [their] short-haul fleet of 737-800s..." Quite the reverse, with that fleet they have posted record profits (
Ryanair reports record profits - The Irish Times - Mon, May 21, 2012)!! I haven't done the sums, but I suspect that Ryanair's entire seating capacity on that one 'fuel-inefficient' fleet significantly outnumbers SAA's seating capacity on all their fleets combined!!
Note, however, this quote from that Irish Times article "
We expect more ... failures in 2012, as higher oil prices and recession continues to expose failed airline models as well as subscale or peripheral carriers"! Would SAA then fit into that category of "failed airline models" if they cannot make
their B737-800s earn a profit and they cannot make use of the business opportunities presented to them with competitors pulling off routes into SA?
I also note that the 'proud to be SAA' lobby has gone very quiet with this thread!!