South African Airways in Trouble ?
Thread Starter
Joined: Feb 2004
Aviation Qualifications: ATPL
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From: USA
South African Airways in Trouble ?
This sounds dire. Accurate ?:
"Africa’s second largest airline and one of its most historic is in danger of liquidation…"
https://airwaysmag.com/airlines/sout...airways-brink/
"Africa’s second largest airline and one of its most historic is in danger of liquidation…"
https://airwaysmag.com/airlines/sout...airways-brink/
Joined: Aug 2016
Posts: 1
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From: johannesburg
SAA is badly run, overstaffed and a liability to all us poor bastards as taxpayers - plain and simply put. In fairness to SAA's competitors it should be liquidated or sold. If it is sold, the question then is who would buy a company that is so overstaffed (with many of them obviously incompetent with the job in hand) and would the unions/government allow retrenchments? That leaves us with "dump it".
Joined: Dec 2015
Posts: 424
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From: Cape Town, ZA
You could write a whole book about the mis-management of SAA, which has been ongoing for years. The need for repeated bailouts by the taxpayer have not helped stabilise the situation, and political interference in the running of the state-owned entity has made things worse. For the latest saga see: Zuma/Gordhan rift over SAA is false - Presidency | Fin24
Some critical aspects have now come to a head, and while the risks of liquidation are real, such an outcome would be unrealistic, since the airline is too-big-to-fail. Expect some sort of compromise, which will postpone the immediate crisis, but with no long term solution in sight.
BTW, the photo at the top of the article inadvertently highlights one of the most obvious problems faced by SAA, its ownership of A340 four-engine jets, which are no longer fuel efficient, and have plummeted in resale value.
Some critical aspects have now come to a head, and while the risks of liquidation are real, such an outcome would be unrealistic, since the airline is too-big-to-fail. Expect some sort of compromise, which will postpone the immediate crisis, but with no long term solution in sight.
BTW, the photo at the top of the article inadvertently highlights one of the most obvious problems faced by SAA, its ownership of A340 four-engine jets, which are no longer fuel efficient, and have plummeted in resale value.
Joined: May 2010
Posts: 1,093
Likes: 9
From: UK
Privatisation is the only sane solution.
Declare insolvency to allow IAG or similar to step in without all of the dead wood and politically appointed incompetants.
The A340s are not the problem, just a smokescreen to cover up the overstaffing and the enormous wage bill.
Just let Willie Walsh sort it out in the same way that he sorted Iberia.
Sort out the abysmal cabin service and the passengers should come back.
Declare insolvency to allow IAG or similar to step in without all of the dead wood and politically appointed incompetants.
The A340s are not the problem, just a smokescreen to cover up the overstaffing and the enormous wage bill.
Just let Willie Walsh sort it out in the same way that he sorted Iberia.
Sort out the abysmal cabin service and the passengers should come back.
Joined: Sep 2008
Posts: 629
Likes: 1
From: Been around the block
A BIGGGGGG roger on that Skipper! SA engineers are nothing short of spectacular. They're pretty good around a bbq(brai) too. Don't fret too much about the boys though. Their virtues are well known globally and they're aggressively head hunted by operators who pay much better than SAA.
Joined: Dec 2015
Posts: 424
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From: Cape Town, ZA
The stakes are getting higher: SAA looking for R16 billion to keep flying
Privatisation would be the rational solution, but this is Africa....
Privatisation would be the rational solution, but this is Africa....
Joined: Dec 2000
Posts: 2,132
Likes: 3
From: on the golf course (Covid permitting)
Why on earth would IAG/Willie Walsh want to invest in SAA?
As has been said, they are a basket case and BA/IAG can clean up on the JNB and CPT routes with little competition from SAA and use franchisee Comair to transfer pax to / from LHR / local cities.
What else have SAA got to offer over the above?
Not a lot, I would suggest.
Even if they did invest they would have to contend with SA politics and politicians with their way of doing business.
If I were Willie, I wouldn't touch them with a barge pole!
As has been said, they are a basket case and BA/IAG can clean up on the JNB and CPT routes with little competition from SAA and use franchisee Comair to transfer pax to / from LHR / local cities.
What else have SAA got to offer over the above?
Not a lot, I would suggest.
Even if they did invest they would have to contend with SA politics and politicians with their way of doing business.
If I were Willie, I wouldn't touch them with a barge pole!
Joined: May 2010
Posts: 1,093
Likes: 9
From: UK
The whole point of privatisation is to get rid of the politicians and their expensive unproductive dead wood.
Run as a proper fully independant business with good professional management it could be a good profitatable airline. There would naturally be howls of protest from the unions but the choice is simple - privatisation with job cuts or insolvency with no jobs.
Run as a proper fully independant business with good professional management it could be a good profitatable airline. There would naturally be howls of protest from the unions but the choice is simple - privatisation with job cuts or insolvency with no jobs.
Joined: Dec 2015
Posts: 424
Likes: 0
From: Cape Town, ZA
The bailouts will continue: Myeni set to win SAA battle and remain board chair - report | Fin24 and SAA gets breather on Hong Kong deregistration | Fin24
Joined: Sep 2008
Posts: 1,307
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From: South Africa
Joined: Jun 2000
Posts: 413
Likes: 0
From: Africa
The game of musical troughs continues. Still a few comrades who need to be rotated through a couple of directorial and managerial positions to get a good suck at the trough, so the edifice will continue being propped up by public money until all have had their turn at the gravy or it goes tits up regardless.
The sense of entitlement to public funds for personal ends by the regime is absolutely mind boggling.
The sense of entitlement to public funds for personal ends by the regime is absolutely mind boggling.
Joined: Aug 2015
Posts: 591
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From: Escaped the sandpit 53° 32′ 9.19″ N, 9° 50′ 13.29″ E
My deep and sincere apologies to Dudu Myeni. Now we know what's the proplem. The gredy pilots...... Pampered SAA pilots? bizarre perks and wages cost R2bn | The Citizen
Joined: Jan 2011
Posts: 68
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From: Sydney
"Glorified drivers"... wow, I thought the Australian media was bad! As someone from outside ZA, I'm assuming this particular "news" agency is simply pushing an agenda? (I note several "white" comments)