Government looks at merging SAA, Mango and SA Express

Gaz{M}

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It is madness that Government runs 3 airlines....3!! 3 x CEO's, CFO's, CTO's, COO's, 3 x Boards, 3 offices, 3 marketing departments, 3 this 3 that etc. What a waste.
 

RonSwanson

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It is madness that Government runs 3 airlines....3!! 3 x CEO's, CFO's, CTO's, COO's, 3 x Boards, 3 offices, 3 marketing departments, 3 this 3 that etc. What a waste.
Interesting comment, considering they're doing exactly that with Eskom.
 

Nod

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I don't know how SA Express can be in trouble. They have the monopoly (mostly) of flying to smaller airports, at exorbitant prices, yet they are failing? I would love to to fly to George from Cape Town, as it would save the 4.5 hour drive, but not at R3500 a head (3x for the family).
 

Gaz{M}

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I don't know how SA Express can be in trouble. They have the monopoly (mostly) of flying to smaller airports, at exorbitant prices, yet they are failing? I would love to to fly to George from Cape Town, as it would save the 4.5 hour drive, but not at R3500 a head (3x for the family).
Because a hairdresser supplies the fuel at R50 a litre and a dentist supplies bottled water at R90 for a 250ml Valpre and there are 150 employees while only 3 do any work.
 

konfab

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Interesting comment, considering they're doing exactly that with Eskom.
It is completely different as they are differently structured companies.
Eskom's split is splitting it's vertical integration. Generation, transmission and distribution are three completely different, but interdependent functions of Eskom.
This merger is a horizontal merger. SAA, Mango and SA express are three different companies doing mostly the same thing.
 

Jopie Fourie

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I don't know how SA Express can be in trouble. They have the monopoly ...
They learnt from the best... go look at Eskom. You can give these okes a company like Apple, Google, Coca-Cola and they will bankrupt them all within weeks.
 

Kosmik

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Don't see the point of SAA. Should be same as any other company, why does it need to be an SOE.
 
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Quey_Quick

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Don't see the point of SAA. Should be some as any other company, why does it need to be an SOE.
I wholeheartedly agree with this, why do we even need to have a national carrier? Some misguided sense of patriotic pride?
 

RonSwanson

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Because a hairdresser supplies the fuel at R50 a litre and a dentist supplies bottled water at R90 for a 250ml Valpre and there are 150 employees while only 3 do any work.
But at least they are AA and BEE.
 

RonSwanson

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It is completely different as they are differently structured companies.
Eskom's split is splitting it's vertical integration. Generation, transmission and distribution are three completely different, but interdependent functions of Eskom.
This merger is a horizontal merger. SAA, Mango and SA express are three different companies doing mostly the same thing.
Yes, I understand that, but fail to see how this will lead to Eskom's salvation.
 

ambroseg1

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I wholeheartedly agree with this, why do we even need to have a national carrier? Some misguided sense of patriotic pride?
Yip. So that when our leaders, chat to other african leaders, we can brag about having a national carrier. Its basically that in a nutshell.
 

konfab

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Yes, I understand that, but fail to see how this will lead to Eskom's salvation.
Because the transmission and distribution parts of Eskom's business are much easier to run than the generation part. Thus separating them will gradually allow the private sector to take over the generation.
 

furpile

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Ouch..... luckily we still have Kulula and Flaysafair...
It will still be unfair that Kulula have to compete with Mango on prices, but Mango benefits from taxpayer bailouts every year. Same with SA Express and Airlink and other small carriers.
 
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