South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
NO BAILOUTS FOR SAA, SAPO: NENE
The country's embattled state-owned entities (SOEs), including SA Airways and the SA Post Office (Sapo), will not be bailed out, according to Finance Minister Nhanhla Nene.
Instead, they will be restructured to make them financially sustainable, he said in the Medium-Term Budget Policy Statement (MTBPS), tabled at Parliament on Wednesday.
There's no way those companies are ever going to be financially sustainable unless there's mass retrenchements in each and their purpose is revisited. SAA's cost base is out of their hands, unless the government forces Sasol to sell fuel to them at cost just like it happens with Emirates and Etihad Airways. We should either make a conscience decision to privatise SAA or continue funding it like it's a government department. I feel sad for the staff of SAA.
As for Post Office, they are held by a government that wants cheap postal services, so they have to pay for those cheap services. They will have to retrench as well but we know the government won't allow that, so they are forced to bail them out.
Or just privatize them.... get rid of the leeching and make it somebody else's problem.
Oh wait, I have forgotten about the unions. Silly me.
The unions stand between us and a better financial future.
Its not an easy decision because SAA has strategically lowered the tickets prices in line with a directive from the government. So privatising it means paying more for tickets. Consumers will then complain to the government about the high prices of tickets and the government wont be able to manipulate that market. The government should just shut up and bailout SAA every year.
Its not an easy decision because SAA has strategically lowered the tickets prices in line with a directive from the government. So privatising it means paying more for tickets. Consumers will then complain to the government about the high prices of tickets and the government wont be able to manipulate that market. The government should just shut up and bailout SAA every year.
unions = votahs
votahs demand jobs, not wheck.
And not by a small amount either. Prices multiples of those of other airlines aren't super uncommon.SAA is more expensive than other airlines.
Lets make a list of what we are still waiting for through the mail and cry about it.
04/08 2Pcs 1800mAh Merchantable Li-Ion Battery for Samsung Galaxy S 2 II I9100 R60
16/09 Vauxhall Opel 2 button remote key fob Bosch RK 203 433.92 MHz TESTED NO LED R400
18/09 Black Seat Belt buckle Retainer / Seatbelt Stop Button Black R130
24/09 Suzuki touch up paint scratch repair ZFN OCEAN LIGHT BLUE 2 R110
11/09 Astrum USB LAN adaptor R125