SAA faces big issues

Pox said:
For as long as SAA has 5 times the employees per aircraft as compared to global average, it won't make a difference who meddles.
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Meddling ensured SAA employed those numbers in the first place. So, it's the meddling that gave way to the numbers to swell. Politicians promise jobs they can't create. As a consequence, they use the SOE's to embellish employment figures.
 
Although it'll result in higher international airfares, it's time to let SAA die.
 
Maybe privatise it. Government may still have to take over a sizeable portion of the debt to sweeten the deal, but it should be the final installment so to speak.
 
Zoomzoom said:
I'm sorry but honestly, rubbish!
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Are you blind to the obvious?

Looting happens through inflated supply contracts being directed to connected (read BBBEE) suppliers and bloated employment numbers. SAA overpays for just about everything it buys, why else would it be operating at a loss when other private airlines such as Comair make good profits flying the same domestic and regional routes?

Another bailout will just allow the skimming on supply contracts to continue.
 
phaktza said:
Yes but they're accountable to a board and shareholders.

Government seems intent on promoting the idea that black CEOs will never be held liable. Thus the racist backlash.
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I still think you are trying very hard to make the failure of SOEs to be all about black executives. The argument about government promoting the idea that black executives can't be held accountable does not make sense.
 
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Bernie said:
Maybe privatise it. Government may still have to take over a sizeable portion of the debt to sweeten the deal, but it should be the final installment so to speak.
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Nobody will touch it with a bargepole. The union fallout from having to cut the excess employees will paralyse any new owner into bankruptcy.
 
Bernie said:
Maybe privatise it. Government may still have to take over a sizeable portion of the debt to sweeten the deal, but it should be the final installment so to speak.
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Privatisation might have been an option a few years ago but that ship has sailed. It's hard to see why any corporate entity would want to invest in SAA.
 
Blue Shirt said:
Nobody will touch it with a bargepole. The union fallout from having to cut the excess employees will paralyse any new owner into bankruptcy.
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It's way more than that...

To shut saa down will cost a monumental fortune just in existing agreements and debt repayments and such... No private investor will touch an entity in that state that saa is in from a debt level standpoint... They can't service their debt fully from operational revenues.
 
thechamp said:
I still think you are trying very hard to make the failure of SOEs to be all about black executives. The argument about government promoting the idea that black executives can't be held accountable does not make sense.
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That's because the ANC only appoints black executives! How could I make it about anything else when an inherent racist policy only appoints CEOs of a single race?

I'm not being provided with an alternative baseline.
 
alloytoo said:
Meanwhile in other aviation news Air New Zealand has just ordered another 8 787 Dreamliners to replace it's "aging" 777's.
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SAA apparently have 2 A350's on a dry lease on the way.... From my understanding they're mid 200 MSN's to be delivered around September
 
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Zoomzoom said:
Again, what is the rationale behind supporting SAA?
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It is purely political as you must know. Mboweni already admitted that SA cannot afford the SAA bailouts.

So then why has R55 billion been wasted during the past two years keeping SAA afloat when we all know it is the equivalent of burning money? Politics. If money is political capital then money is required to remain in power.

Surely a strong leader would simply do what needs to be done? To answer that question we need to ask: Who is the leader of South Africa? SA exists in a leadership vacuum. It is leaderless. There is a president, there is a government, but there is no leader willing to make unpopular decisions for the good of the country.
 
phaktza said:
That's because the ANC only appoints black executives! How could I make it about anything else when an inherent racist policy only appoints CEOs of a single race?

I'm not being provided with an alternative baseline.
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Yeah, I knew it, you can't be objective, something is clouding your judgement.
 
ForceFate said:
For as long as there are ANC politicians meddling in the affairs of SAA, even the best CEO won't make any difference
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FTFY.

As long as the ANC subscribes to their National Democratic Revolution which requires "the large-scale, planned development of the economy of the country, controlled and directed by the state" and "will seek to place control of the vital sectors of the economy in the hands of the national democratic state".

Even though the NDR started out as a SACP proposal, the ANC still supports it wholeheartedly. Nothing will change until the NDR is abandoned.
 
Happy Days said:
FTFY.

As long as the ANC subscribes to their National Democratic Revolution which requires "the large-scale, planned development of the economy of the country, controlled and directed by the state" and "will seek to place control of the vital sectors of the economy in the hands of the national democratic state".

Even though the NDR started out as a SACP proposal, the ANC still supports it wholeheartedly. Nothing will change until the NDR is abandoned.
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No but the ANC is going to institute these failed policies and get different results :ROFL:
 
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