SAA says it will be profitable by 2021 – here’s how much money it says it needs first

[BusinessTech]

SAA says it will be profitable by 2021 – here’s how much money it says it needs first

Despite previous bail-outs for SAA - including the R5 billion under consideration - the airline will still be insolvent, say officials.

 

[Gaz{M}]

And yet there is no money to save Eskom or the Water boards or failed municipalities. Services we all actually use.

 

[ekske1]

More like 6060

 

[Visser]

Won't happen. The SAA can never turn into a profitable company again.

 

[The_Librarian]

Send Hlaudi in to work his miracles.

 

[ToxicBunny]

Won't happen. The SAA can never turn into a profitable company again.

Actually there is every chance for it to do so... but very unpopular moves have to be made including trimming staff.

Granted, this doesn't gel with your frothing at the mouth point of view but still.

 

[Milano]

According to Jarana, the airline needs R12.5 billion in shareholder funding to break even and turn to profit.

Interesting use of the words 'shareholder' and 'profit'.

 

[Gordon_R]

Anyone reading about the SAA saga should understand the economic theory of the Sunk Cost fallacy: https://en.wikipedia.org/wiki/Sunk_cost

That R12.5 billion (or whatever) is gone, and can never be recovered. The question is whether investing further money will bring benefits. IMO the answer is no. Any decision to the contrary is mostly a political one.

 

[KleinBoontjie]

Ag, FFS, when will the world burn, already.

 

[Frequent visitor]

Anyone reading about the SAA saga should understand the economic theory of the Sunk Cost fallacy: https://en.wikipedia.org/wiki/Sunk_cost

That R12.5 billion (or whatever) is gone, and can never be recovered. The question is whether investing further money will bring benefits. IMO the answer is no. Any decision to the contrary is mostly a political one.

I fly to the UK - not London- regularly. So SA is out, and BA, and Virgin. I prefer a break in the flight at around half way for DVT reasons.
That is before you take into account cost and cabin crew attitudes, air miles schemes and so on.
So, for me, SAA, BA, and Virgin will never fit my needs or wishes. I suspect I am not unique.

 

[WaxLyrical]

Actually there is every chance for it to do so... but very unpopular moves have to be made including trimming staff.

Granted, this doesn't gel with your frothing at the mouth point of view but still.

Actually there isn't because we know the gov will never do what you're suggesting.

Case in point - Ramaphosas recent cabinet "reshuffle" is proof of this.

He's not will to make bold moves to improve dire situations.

 

[Milano]

Realistically there is very little chance of doing so. Even respected private companies with the very best intentions and highly skilled executives would struggle to bring a private company back from that situation. How much harder would it be for a state owned entity with its hands tied by failed central government policies.

Those in government have constantly flip-flopped on the supposed reasons for needing to save the airline. The latest being that it is too costly to wind up.

There is no evidence to suggest that there is a strong political will to turn the airline around. They can just as easily keep calling for bailouts for the next decade.

A government currently in the throngs of a crises of irregular spending, wasteful expenditure and unadulterated corruption with a track record of failure should have cut its losses irrespective of the current costs.