SAA to be split into three units

Why not just cut the loss makers now ?

You need to pin point it. It's a management style. Break it up into smaller manageable chunks and pinpoint where the losses are coming from for each section. Identify and either deal with it, or cut your losses.
 
Is the concept of splitting entities up to make a profit, like the theory that if you pay with a bigger note you get more change?
 
It would be easier to sell it off then.
The domestic can be sold to mango, regional to kulula and the international can be left with government along with the billions in debt.

SAA technical and whatever support could be a 4th business.

Um.....
 
Clowns to the left of me,
Jokers to the right, here I am,
Stuck in the middle with you
 
I can see how it might work for Eskom due to structural similarities with Telkom... That is if Eskom's breakup is something in the line of generation-distribution(power lines)-wholesale. As we've seen with Telkom something like that could really streamline things.

But SAA? How does that make sense? The collective management wage bill will just go up massively if this is done. How will it help to reduce cost to the tax payer?
 
Breaking up and splitting both entities, Eskom and SAA, into 3, 5, 10, 15 or even 100 pieces will not resolve the issues. From a management point, it may make sense, but then again, if there were a proper management, with sufficient experience and qualifications, not affected by BEE and AA and also backed by a similar work team below, this could hypothetically work.

They are fooling everyone. Nothing will come of it. Splitting the entities will increase the debt and put an even greater strain on the already fu**ed economy.
 
would it really be a problem if they break it into 3?
It is normally beneficial to consolidate business units to take advantage of the economics of scale and specialisation. Expanding a bankrupt failing business by making it more complicated is probably the stupidest idea ever.
 
It would be easier to sell it off then.
The domestic can be sold to mango, regional to kulula and the international can be left with government along with the billions in debt.

SAA technical and whatever support could be a 4th business.
This is the only thing that could possibly make sense. But then the unions will fight against it.
 
SAA CEO Vuyani Jarana said the firm will be split into domestic, regional and international business units, each with their own management.
Why not lump domestic and regional together in the same category?
 
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