In 2002, I sat at a check in counter checking people in for a competing airline. I was earning R5000 per month nett. The person sitting at the SAA counter next to me, doing the exact same job was earning R11000.
SAA has too many people (Thanks BEE) earning too much money (Thanks apartheid) for too long.
They can't retrench staff because their union will have a **** fit. They can't unanimously decide on a global pay cut for everyone (like comair successfully implemented) because of entitlement (thanks BEE) and their union will have a **** fit.
SAA is not financially sustainable. Dead weight. Muertos.
The biggest issue is all the other airlines who SAA owes at least R20m to SA Express. SAA is now protected under business rescue, so SA Express is screwed.
SA Express and SAA collectively owe SA Airlink R700m who is now critically short on operating capital. SA Express is now also protected under business rescue as per the recent high court ruling, despite being appealed.
SA Airlink is South Africa's largest airline with more routes than anyone else. They are privately owned, and have no means to get any of their money back, because SA Express and SAA are both protected under business rescue.
Any bets on which airline goes under first? If the government isn't careful how this matter is handled, a large portion of the entire airline industry could implode.