Government could give up majority stake in Telkom to save SAA

konfab

Honorary Master
Joined
Jun 23, 2008
Messages
24,658
Imagine if this was a private investor:

Lets sell one of my few assets that is working well and making me money so I can bail out a liability. Oh and the liability doesn't even serve the interests of the majority of people who I am meant to represent.

They should be doing the opposite. SAA should be packaged up and sold off.
 

rubber_otter

Expert Member
Joined
May 25, 2009
Messages
1,608
Imagine if this was a private investor:

Lets sell one of my few assets that is working well and making me money so I can bail out a liability. Oh and the liability doesn't even serve the interests of the majority of people who I am meant to represent.

They should be doing the opposite. SAA should be packaged up and sold off.
Why? Their whole mindset is all about image. What other people see.

You see, if other countries see SAA planes, they will naturally think, "wow, look, their own aircraft"
Same as the fat cats in their R1mil company cars. Fancy la-di-da.

Now, selling off shares of a company that no outsiders can 'see'? Thats MOS the smart move.
 

Ancalagon

Honorary Master
Joined
Feb 23, 2010
Messages
16,786
Imagine if this was a private investor:

Lets sell one of my few assets that is working well and making me money so I can bail out a liability. Oh and the liability doesn't even serve the interests of the majority of people who I am meant to represent.

They should be doing the opposite. SAA should be packaged up and sold off.
The irony is that, the less government influence Telkom has, the better it does. So, this move is good for Telkom but bad for SAA, because what SAA really needs is a kick in the bum. And the firing of every single executive.
 

MSGRule

Well-Known Member
Joined
Sep 7, 2011
Messages
107
Sell SAA to South African companies keep the name will save loads on branding.

Make it profitable within few years.

Change the current rulers running that are running the country into the ground and sell it back to government
 

v3gout

Well-Known Member
Joined
Mar 30, 2005
Messages
351
"Lets sell one of my few assets that is working well and making me money so I can bail out a liability."

Madness! Let SAA crash and burn.
 

R13...

Honorary Master
Joined
Aug 4, 2008
Messages
32,340
They don't need to sell it. They just must depoliticise appointments there and let proper management take over with a competent board and downsize because they are overstaffed. But given that the economy is in recession, we're in junk and bleeding jobs they can't afford to add to the unemployment figures with an election just around the corner
 

skeptic_SA

Executive Member
Joined
Apr 16, 2015
Messages
8,781
SAA is a cash cow for a privileged few connected. The paper-trail must be so well hidden and the kickback channel so well buried - that they HAVE to keep it going.

I mean... Have you seen the price of Rupert & Rothschild Baroness Nadine Chardonnay when its not being paid for courtesy of the taxpayer. Schit that stuffs like R1200 a bottle. And these cnuts wash their pap and KFC down with it.
 

konfab

Honorary Master
Joined
Jun 23, 2008
Messages
24,658
They don't need to sell it. They just must depoliticise appointments there and let proper management take over with a competent board and downsize because they are overstaffed. But given that the economy is in recession, we're in junk and bleeding jobs they can't afford to add to the unemployment figures with an election just around the corner
They should sell it.

Airlines do not provide any services to poor people, and most of them in the private sector barely make a profit. The average citizen in this country isn't going to set foot in a plane.
 

Thor

Honorary Master
Joined
Jun 5, 2014
Messages
39,731
What is behind SAA, the public must follow that money, I suspect it will end up in Gupta hands.
 

R13...

Honorary Master
Joined
Aug 4, 2008
Messages
32,340
They should sell it.

Airlines do not provide any services to poor people, and most of them in the private sector barely make a profit. The average citizen in this country isn't going to set foot in a plane.
If all they want to do is employ people then they should ensure it at least breaks even. That means sound management with competent oversight. Be brave enough to cut all those unprofitable routes, offer good competitive service. I mean if they aren't for profit I don't see why they can't at least compete.
 

ponder

Honorary Master
Joined
Jan 22, 2005
Messages
82,792
Even better would be if they sold their stake in Telkom and sell off SAA. Would probably make sense to spin off their technical division that is quite capable and they can offer their services to all the other players as well.
 

Lupus

Honorary Master
Joined
Apr 25, 2006
Messages
24,656
Could the government just give up JZ? Then 80% of our problems would disappear.
 

Gaz{M}

Executive Member
Joined
Feb 9, 2005
Messages
6,222
The irony is that most international flag carriers are not government owned anymore, they are private. Only the ANC ideologues insist on running their own airline like some sort of ridiculous R20 Billion rand international advertising campaign.

Imagine what else you could do internationally in terms of promoting South Africa, for R20 Billion...
 

OCP

Expert Member
Joined
Jan 23, 2014
Messages
3,819
The real question will be who they sell the Telkom share to.
i'm willing to bet it will be a BEE company with cadre's behind the scenes.
 

reactor_sa

Executive Member
Joined
Feb 6, 2009
Messages
7,794
IF SAA goes, then how will the Zuptas send out their billions without raising the money laundering suspicions at the banks
 

R13...

Honorary Master
Joined
Aug 4, 2008
Messages
32,340
IF SAA goes, then how will the Zuptas send out their billions without raising the money laundering suspicions at the banks
They don't use SAA now. They even lease aircraft to government for VIP travel as that fiasco with Cyril showed us.
 
Top