Think we should all be allowed to add the type ratings and training we pay for, onto our licenses.

R539-million bailout for SAX
 

Privately-owned aviation company Comair has blasted government intervention and financial aid for state–owned airlines after SA Express moved to finalise a R539-million guarantee last week.

This latest bailout comes after SA Express reported a R187-million loss for the 2010/11 financial year, when its financial report was finally tabled late last month. The airline said funds would be used to cover short– and long–term loan facilities and against working capital and operating expenditure.

But Comair Chief Executive Officer, Erik Venter, said SA Express' appeal was "bizarre", particularly given the ongoing opposition to government’s approval of a R5-billion guarantee for South African Airways.

He added that any impending merger of management operations at South African Airways, SA Express and Mango, widely expected to be announced this month, could fall foul of local competition laws.

SA Express has reportedly been given until the end of the month to present to government before a decision would be finalised. And while Comair's legal challenge to the SAA deal is already underway, Mr. Venter said the company "would have to look at taking the exact same approach" should government grant SAX its request.

Whether both deals are challenged at the same time will depend on whether government does in fact pursue plans to merge its aviation assets, Mr. Venter said, but insisted any such measure would in itself be questionable: "To start with we have this very dodgy practice of government guarantees but on the merger issue, I wonder whether the Competition Commission would turn a blind eye.

"SA Express was established as a separate company and meant to operate at arm's length. Mango too was formed with guidelines to try and maintain a level of competition... You would have three CEOs from different airlines sitting around the table. If we did that, we would be hammered," he said.

The Department of Public Enterprises was unavailable for comment.

I agree with Mr Venter ! This bail out crap is bizarre. We can achieve profitability if the DPE just privatized all its aviation assets. In fact if the DPE was dissolved life would be better on the whole.....:ugh:

Old fleet
 

Now I'm a little confused.
SAA is now leasing a new fleet (R10 000 000 000) value, to replace the aging a/c it now uses.
Mmmmmm.
A346, A342, A330's, B738's.
Someone please explain?:uhoh:

If you take any possible corruption and mismanagement aside, as impossible as that is, ultimately a government run business does not, has not ever, worked anywhere in the world. Government owned but run as a private company works, but government run never works without making a loss.

The A320s coming are not the NEO/sharklet new version probably because the decision taken precedes delivery by 10 years or more. The PFMA (Public Finance Management Act) creates so much paperwork and restrictions that a business trying to ride the pulse of a dynamic market, such as the aviation industry's, is doomed to fail even before the start gun has fired.

I am a staunch believer that the free market, capitalist way is the way to iron out the men from the mice when it comes to business. But I am also a staunch believer that the RSA government should be protecting the aviation industry (pilots, engineers, etc...) from the far more powerful likes of Emirates, etc... Somewhere inbetween, where the government owns the airline but appoints a board to run it like a business, without political influence is part of the answer. Leaving the domestic to the low cost private industry is also, I think, part of the answer. I think having a state run low-cost airline is blindly dumb, what's the point!? It doesn't benefit the industry, the passenger or the tax-payer. SAA should be, in my opinion, a mostly regional and international airline but not at the detriment of the customer or tax-payer, it should be to the detriment of the likes of Emirates, etc...

I believe this is possible to achieve, but not under the rule of the current anti-capitalist buffoons.

Directors:
B Mpondo*, MM Zwane (CEO), SS Zulu (CFO), Y Kwinana*, A Mabizela*

*Non Executive
Company Secretary – Sandile Dlamini
SAA Technical SOC Ltd Reg. No. 1999/024058/07

A lengthy and costly strike seems to be on the cards, so another bail out looks likely in the near future as they continue to lose money.