NEWS ANALYSIS: New lifeboat will not stop SAA nosedive
The problem is that turnaround strategies are not implemented, or not implemented well, writes Linda Ensor
The latest R2.3bn bail-out for South African Airways (SAA) is one in a long series, always justified on the basis that yet another long-term turnaround strategy is in the making. The problem is these strategies are not implemented, or not implemented well. "SAA has been on life support for far too long and it’s time to pull the plug," Cape Chamber of Commerce and Industry president Janine Myburgh said in a summary. "SAA is an essentially commercial operation and, as such, is not entitled to regular financial transfusions from the fiscus. If it stopped operating tomorrow it would not be missed. Other airlines would simply step in to fill the gap and we would no longer have to pay billions of rand every year to keep it going. It is wasteful expenditure of a kind. "The airline has been given every possible opportunity to sort itself out and it has failed every time," she said. Whether the causes are poor management, corruption, undercapitalisation, the legacy of past poor decisions or ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.