SAA bite at Mango CE could backfire

[schumi]

SOUTH African Airways (SAA) made the startling admission on Saturday that it subsidises low-cost state-owned airline Mango, by subleasing to its entire fleet at a significantly discounted cost.

The admission opens up Mango to action by the competition authorities, as low-cost competitors who have long suspected unfair competition are unlikely not to act on the national carrier’s statement.

SAA made the admission in the context of a statement on the resignation of Mango CE Nico Bezuidenhout, who announced on Friday that he was leaving to take up another opportunity.

The intention of the statement appears to have been a desire by SAA to tarnish Bezuidenhout’s reputation by implying that Mango’s success was not due to his managerial strength, but was rather due to the fact that SAA was subsidising the airline.

More at:http://www.bdlive.co.za/business/transport/2016/06/13/saa-bite-at-mango-ce-could-backfire

 

[ToxicBunny]

And a state owned entity scores another own goal....

 

[ponder]

We've known this for years. Nothing will come of it though.

 

[ToxicBunny]

We've known this for years. Nothing will come of it though.

Except its now official, and the other operators can take them to court for it.

 

[skeptic_SA]

Comments taken out of context?

:crylaugh:

 

[SoTrue]

They confessed before previous CEO could tell on them.

 

[krycor]

Interesting time ahead.. Is it just me or is a lot of these SOEs indicting themselves lately

 

[ponder]

Interesting time ahead.. Is it just me or is a lot of these SOEs indicting themselves lately

They're not the sharpest tools in the shed.

 

[Solarion]

He wasn't on the job not even a year. Strange.

 

[flippakitten]

I guess they can just add the legal costs to the Tax Payers bill, no sweat and bonuses for everyone!

 

[schumi]

SAA claims ‘not true’ - Mango

Johannesburg - Mango Airlines leased planes from South African Airways at market-related rates, its chief executive officer said, denying a statement by the budget carrier’s state-owned parent that it provided aircraft at a “substantially discounted cost.”

“It’s outright, straightforward, not true,” Nico Bezuidenhout, 39, said in an interview on Wednesday at Bloomberg’s Johannesburg office. Mango pays market-related lease rates and since 2010 has negotiated new deals directly with leasing companies, he said.

More at: http://www.iol.co.za/business/companies/saa-claims-not-true---mango-2035176