- Jul 11, 2005
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Maybe. However, I think the team running the business rescue are cutting costs and selling assets and the shortfall owed thereafter will come from Government.I personally think that the reason for the Government NOT bailing SAA out is that there is no more funds to do so.
Any actions from Government to acquire more funds for bailouts will trigger a downgrade or worse.
Just an opinion...maybe fun times ahead
Maybe. However, I think the team running the business rescue are cutting costs and selling assets and the shortfall owed thereafter will come from Government.
The other anomaly that people never thought about in late November, the damage a strike can cause to an airline when you don't have the Monopoly and people vote with their feet.
Unions thought that after the strike all will return to normal, it seems their luck (or should I say bailouts and customers) ran out.
Reading the article from November sheds more light on who thought who won the pyrrhic victory.
Yup that strike was incredibly poorly timed (and short-sighted) - no idea how the union leadership allowed it to go ahead, although if they hadn't gone on strike they would've just been delaying the inevitable.
...that Treasury was still "trying to find additional financing" for the airline.
No doubt some corruption involved there as well.
I for one think we can blame them. The time to strike was 2007. Unions and our current president sat back and supported corruption.While we can't blame people for striking at SAA, it is their right to earn a living wage.
My thinking is that the strike they undertook at the end of last year was in my opinion so poorly timed its probably going to cost them all their jobs now.
The ailing SAA was hanging in there on a thread when the strike started and it caused such a disruption that people are not even considering using SAA any more and Travel Agencies won't take future bookings on SAA either, so SAA is sitting now with empty seats. We made a domestic flight booking last week through a Travel Agency for April, they didn't even consider using SAA.
I watched some Union leaders being interviewed defending their action last year at SAA and while what they said had some merit, unfortunately the world doesn't care. Will the Unions learn from this, I doubt it. They will strike for percentage points while the very Company they work for loses Millions daily and in the case of SAA it was around R50 Million a day when they were striking. Furthermore, the Unions need to realise that the money they strike for ultimately comes from the Taxpayer who is struggling to make ends meet already. The same for every other SOE, its taxpayers money when the bailout comes each time.
You could probably trace the beginning of the end for SAA back to around 2013 when Gupta Lieutenant Malusi Gigaba started interfering at SAA and the rest followed.