Government reportedly opts to restructure SAA

The decision will likely mean the airline will require further state funding.
Image: Bloomberg

South Africa’s government has opted to restructure the national airline, Business Day reported, citing state officials it didn’t identify.

Read: SAA cancels 38 ‘low demand’ domestic and international flights

The option to reorganise South African Airways was favoured over either liquidating the carrier, or closing it and retaining the company’s low-cost airline Mango, the Johannesburg-based newspaper said. The decision will likely mean SAA will require further state funding, it said.

© 2020 Bloomberg L.P.

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Are the interfering in the “Business Resque process? How is that legal?

I am afraid that our government is not really competent to restructure anything. SAA is going to go from bad to worse. The only way to kill it is not to fly SAA anymore. Only the public can kill SAA, like they killed the gantry toll system in the Transvaal.

Chris I agree. The SAA has in fact already gone from bad to worse (bANCrupt and in business rescue) and no clear-thinking individual/organisation would actually risk money to buy a ticket for an flight that will most probably be canceled! I’m sure that most passengers flying on SAA currently received free tickets (ministers, employees etc.). The ‘government can opt to’ as much as of whatever they want, politics do not stand up to hard facts. No ticket sales equals liquidation. Period.

You cannot restructure SAA and leave the elephant in the room there. The elephant is the bloated fixed cost for the labor force.

If by restructure means stopping corruption, over-employment and other wastage then there may be a glimmer of hope, but right now the airline runs on tax payers bailout funds year after year.

A friend got his US tourist visa yesterday. Guess which airline he will not be using? It is called risk management in the world of thinking mindsets.

End of comments.

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