Business rescue is unlikely to cure SAA of its real maladies
The same operational and corporate governance issues that grounded the airline in the first place could still stand in the way
Finance minister Tito Mboweni indicated in his second budget speech last month that SAA would be a radically restructured airline after the business rescue process. But what a radically restructured airline looks like remains a mystery to most of us.
SAA has been in a financially distressed position and unable to pay its debts for some time. Its business model has yielded no positive operating results compared with its industry peers over the years, and the Competition Commission has fined the company at least twice since December 2006 for price-fixing and abusing its dominant position...