Merging three lame ducks will not miraculously create a swan, but spinning off a carrier with a commercial incentive could
The SAA and SA Express boards have failed consistently, but there is a solution, one that will end taxpayer bailouts, satisfy politicians’ desire to keep the flag flying and even retain our national pride. But it will take courage and political will.
When combined with mounting losses, negative equity, no working capital to buy new fuel-efficient planes, lack of skills at all levels, a bloated and overpaid workforce, chaotic internal systems, no control over inventories, an endless need for taxpayer bailouts, a merry-go-round of new CEOs and turnaround strategies, constant political interference, a failure to grasp the realities of rapid developments in the aviation market and now problems with SAA Technical and Maintenance, it means SAA...
The government’s recent idea to merge SAA and SA Express with Mango and create one bigger loss-making airline is absurd. Merging three failed airlines will not miraculously create success. International airlines would be invited to tender to run SAIAC and the funds used to settle SAA and SA Express loans and other liabilities. The incentive would be to take over SAA’s existing bilateral agreements and valuable landing slots. SAA has failed to use many existing bilaterals, while foreign airlines have apparently taken all they are allowed in SA and are pushing for more.
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