There is legitimate anger and exasperation among the public about the financial woes of South African Airways (SAA) because of the stratospheric amounts of subsidies dished out to the airline by all the administrations to date without confronting and finding a solution to the most important and fundamental questions about its existence. Should the national airline fulfil a commercial or developmental purpose? The answer to the first option is easy and has obligatory consequences consistent with market practice in relation to management capability and conduct; board capability and fiduciary attitude; funding structure; profit motive; an accountability framework and operating processes. The answer to the second depends on the ideological preferences of the shareholder and mandate given to the board; funding structure to meet mandate obligations; a high risk for noncommercial behaviour by management; and an appetite to expose citizens to potentially unlimited funding support. The profi...
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